Infographic: Businesses Much Less Prepared Than They Think

Study says they're overconfident about cyber risks, health care costs and other concerns.

Businesses are not as prepared as they might think. Chart courtesy of The Graham Co.

Businesses are not as prepared as they might think. Chart courtesy of The Graham Co.

Hey business owners: Do you think you’ve got things like cyber security and health care costs under control? Well a new study from Philly-based Graham Co. says you’re probably overconfident. (Check out the infographic above.)

Take the hot topic of cyber security risk for example. Six in 10 (61 percent) of business leaders say they’re prepared for cyber risks, but just 56 percent have completed an IT, networking or cyber security audit within the past two years.

The division is even more pronounced on reputational risks and liability faced by board members and executives. More than three quarters (76 percent) say they’re prepared for such risks, but just 49 percent have directors and officers liability insurance coverage. On health care costs, 64 percent say they’re confident but 56 percent actually consult with insurance experts regularly.

“A one-size-fits-all approach to insurance and risk management isn’t adequate in today’s constantly evolving business environment,” said Ken Ewell, President and COO of The Graham Co. “Business leaders need to shift their risk-management approach from passive and general, to proactive and specialized in order to protect their companies.”

Here are some other interesting findings:

  • 60 percent of small business decision-makers feel the Affordable Care Act has had a negative impact on their organization.
  • 21 percent of business leaders consider cyber security to be the single biggest risk facing their organization.