Aviva Canada has published its second annual Risk Insights Report, a survey of Canadian businesses to analyze the risks and challenges they face.
The top perceived stressors impacting Canadian businesses include the economy, business interruption risk, public health concerns and skills shortages. Two out of three businesses surveyed, 66 per cent say climate change and environmental, social and governance (ESG) issues have also increased in importance, up from 58 per cent in 2022. Notably, cyber security, the second place stressor in 2001, did not make the top five risks identified in this year’s report.
The survey of 1,500 Canadian business leaders further found that 70 per cent recognize the importance of risk management planning and intend to increase their risk management activities, but fewer than one in three are carrying out the necessary critical assessments needed to safeguard operations.
“While a majority of Canadian businesses target growth and customer retention to recapture revenues lost during the pandemic, they are also aware of gathering storm clouds caused by cost-of-living crises, rising energy prices, supply chain disruptions and trade wars stoking recessionary fears,” the company states in an announcement about the report’s publication.
“Economic uncertainty is the sharpest and most present risk facing Canadian businesses,” the report states. “Economic concerns are rooted in exposure to risk.”
The report concludes saying although insurers rank among the top sources of risk mitigation support, only one in three businesses are making contact with their insurers for help. “It’s an opportunity for insurance companies and brokers to be more proactive,” they conclude, adding that businesses are also looking for more comprehensive coverage. “As businesses look to grow, ensuring they have the right coverage will be vital. But so will education.”
