In a business world that is constantly changing, risk management has emerged as one of the most important pillars for guaranteeing the sustainability and growth of companies.
The future of companies and their success depends on their ability to anticipate and deal with challenges in a strategic and coordinated way, i.e. to mitigate risks. Globalization and digitalization have led to an increase in business opportunities, but they have also made companies more exposed to an uncertain environment.
The challenges are many and the risks increase every year. From cybersecurity incidents to macroeconomic changes, natural disasters and talent shortages, there are many factors that jeopardize the stability and growth of a business. But how can companies prepare to face these threats in 2025? The answer lies in risk management. However, we need to understand what risk management is. When we talk about this topic, we are referring to a systematic process that aims to identify, assess and mitigate the risks that can impact an organization, a project or an activity.
A solid risk management plan is an investment in the future. As well as protecting the company against losses, it opens doors to new opportunities. When companies anticipate and prepare for the unexpected, they become more resilient and able to take advantage of trends.
In this article, we’ll talk about the main risks for companies and how to mitigate them.
Emerging risks and structural challenges for companies in 2025
Today, like many other countries, Portugal faces significant risks. According to the Global Risks Report 2024, inflation, the cost of living crisis, economic stagnation, commodity price shocks and public debt top the list of concerns. The global situation, marked by climate change, cyber-attacks and geopolitical tensions, further exacerbates this scenario.
Despite the fact that many entrepreneurs still don’t give due consideration to the risks they face, particularly cyber risks, protection measures must be implemented as a matter of urgency, as ECOseguros’s publication points out. The global panorama thus presents a growing list of risks that can negatively impact companies. Among the main challenges are the following:
Cybersecurity incidents
With growing technological dependence and the increased use of AI (artificial intelligence) based technologies, cyber attacks are one of the biggest threats to companies’ operations. It is estimated that cybersecurity incidents and the theft of personal data will continue to increase, leading to higher recovery costs, interruptions to operations and damage to companies’ reputations. In fact, last year, according to the Allianz Risk Barometer 2024 report, cyber attacks were considered the main global risk for companies.
Climate change and natural disasters
Extreme events such as fires, floods and storms have intensified due to climate change, putting both property and business operations at risk. The fires in Los Angeles, California (USA), are examples of these phenomena, which are happening more frequently and should therefore be a wake-up call for everyone.
Macroeconomic changes
Global economic instability, such as persistent inflation, exchange rate fluctuations and international conflicts directly affect the financial health of companies. Besides, changes in interest rates and global monetary policies can increase financing costs and reduce companies’ liquidity.
Shortage of talent
The difficulty of attracting and retaining qualified talent remains a major challenge, especially in sectors with high technological demand. The shortage of talent even has a direct effect on productivity and business innovation.
Supply Chain disruptions
All the factors mentioned highlight the vulnerabilities in the global supply chain. In fact, it is expected that by 2025, export restrictions, rising tariffs and logistical disruptions will continue to affect the availability of raw materials and essential products.
Faced with the increasing occurrence of these challenges today, it is necessary to implement customized solutions that can minimize the impacts. Read on and find out how you can guarantee the future and growth of your business.
Insurance for companies: fundamental risk management solutions
Insurance plays an essential role in risk management, helping companies to mitigate the impact of unexpected events. Let’s take a look at some examples and their solutions that can protect the future of your business:
Cyber Risk Insurance
Imagine arriving at your company in the morning and finding the servers down. There is no access to the system, customer data is inaccessible and an email demands a ransom in cryptocurrencies. A cyber attack has paralyzed everything. Calls from upset customers and financial losses ensue. Cyber Risk insurance protects your company from financial losses caused by data theft, computer sabotage and other cyber incidents, guaranteeing business continuity.
Business Interruption Cover
Let’s say you run a factory in an industrial area. After a storm, you find the warehouse flooded and the equipment damaged. Production stops and the losses pile up. With Business Interruption cover, you could guarantee fixed costs during downtime, recover lost revenue and ensure financial stability while repairing the damage.
Credit Insurance
Market changes are fast and unexpected. Suppose your company, a supplier of car parts (for example), saw important customers stop paying due to economic difficulties. Without protection, the business was in danger. With Credit Insurance, you could have received the missing amounts, maintaining your company’s financial health and continuing to operate without interruption.
Group Life Insurance and Group Health Insurance
The shortage of talent is a growing challenge. Offering benefits such as Life Insurance or Health Insurance for employees can help attract and retain qualified professionals. By offering these benefits, companies increase the motivation and performance of their employees, which is reflected in increased productivity.
Although these solutions can help companies, risk management isn’t just about taking out insurance. Preparing for unforeseen events involves strategic planning, as well as specialized monitoring to identify and mitigate vulnerabilities specific to each company. But why is risk management important? Here are a few reasons:
- Financial protection: economic losses caused by unexpected events are minimized;
- Business continuity: the company is prepared to face crises without significant interruptions in operations;
- Legal and regulatory compliance: the company is able to act in compliance with laws and regulations, avoiding penalties and sanctions;
- Confidence building: effective risk management increases the confidence of customers, investors and partners, strengthening the company’s reputation;
- Informed decisions: with a clear view of the risks, the company is able to make strategic decisions with greater certainty.
If you still don’t know where to start with this management, you can follow these steps:
- Analyze the business context and prepare a SWOT analysis;
- Identify the risks and possible ways around them;
- Measure the impact of these possible risks;
- Think of concrete solutions to carry out;
- Continuously monitor the risks and their solutions;
- Involve all employees in this commitment, through training and transparent communication;
- Distribute responsibilities among employees;
- Develop a contingency plan for emergencies.
In short, a company’s ability to adapt and protect itself against risks is crucial to its success. Famasegur is a strategic ally in this process, as it has the necessary tools at its disposal to help your business face the challenges of the future. Talk to us so we can create solutions customized to your needs and profile. Adopting preventive policies and aligning business protection with global trends is a crucial step towards success.
