April 29, 2014
/PRNewswire/ -- As U.S. and Canadian businesses plan to expand their business overseas this year, supply chain failures, data breaches and political instability are weighing heavily on the minds of their executives, according to a survey by the Chubb Group of Insurance Companies.
The 2014 Chubb Multinational Risk Survey identified the top overseas business threat as supply chain failure (19%). A data breach/cyber event (15%) was ranked second, and government/regulatory investigation and political instability were tied for third (13%). Natural catastrophe (12%) was ranked fourth out of the 10 events listed.
The survey also found that one in two (52%) businesses plans to increase its overseas activity in 2014. Survey respondents expect to increase overseas travel (27%), introduce new products in foreign markets (27%) and increase employee headcount abroad (26%).
"Companies, large and small, continue to seek out new business opportunities abroad, and they increasingly are being confronted by political and economic turmoil, natural and manmade disasters, and regulatory hurdles," said
, senior vice president and worldwide manager for Chubb Multinational Solutions. "As they expand their international business operations, companies need to take a more holistic or global approach to managing risk."
Nearly half (45%) of the executives surveyed noted that overseas risks pose a greater threat to their company than domestic ones, while one-third (33%) reported that overseas risks are an equal threat. In addition, nearly half (48%) of the companies had experienced at least one loss related to conducting business overseas over the last three years.
Supply Chain Risk
Despite their concern regarding supply chain failure, only 56% of companies have a business continuity plan that addresses overseas risks, and 22% of companies that do have a plan have never tested it.
Larger companies (74%) were much more likely to be prepared for overseas business interruptions than smaller companies (48%).