Most people have this misconception that only great natural disasters like earthquakes and hurricanes can put their business at risk, but according to research done globally by Allianz Group, only 12% of business interruption claims result from natural disasters. Fires and explosions were the major causes of global claims in recent years. Lessening the effects of risks requires a basic understanding of the level of threats and their impacts.
The following are the causes of major business interruption risks and income loss:
Water damage
Crime or vandalism
Equipment failure
Natural disasters
Loss of running water or electricity
Most businesses are prone to the risks mentioned above. Therefore, risk managers must assess these risks, decide which one poses the biggest threat to the business, and take measures that can help prevent these risks.