Aviva Canada reveals top five risks concerning Canadian business leaders

Aviva Canada, one of the largest property & casualty (P&C) insurance groups in Canada, has released its latest Risk Insights Report, shedding light on the top five risks that Canadian business leaders believe they are facing.

The report, which was based on a survey conducted with 1,500 Canadian business leaders, examined the perceived risks impacting businesses in Canada. It found that 70% of businesses in the country aim to increase their risk management activities after recognising the significance of robust risk management planning.

However, many businesses are still unequipped to handle emerging challenges, with less than one in three carrying out the necessary critical assessments needed to protect their operations.

Aviva Canada reveals top five business risks for 2023

The following, according to Aviva Canada, are the top five current business risks in Canada that Canadian business leaders are most concerned about:

• Economic outlook (56% of the respondents said they were somewhat concerned about this risk);
• Business interruption, including cyber security and environmental risks (however, 8% of companies did not have business continuity plans, up from 5% in 2021, and only 29% contacted their insurance company or broker for help);
• Public health (52% of companies allocated more resources to their people's health and wellbeing, including implementing hybrid work environments);
• Skill shortages (23% of Canadian businesses said they are understaffed); and
• Cyberattack risks (29% still feel exposed).

Additionally, two-in-three Canadian business leaders (66%) said climate change and ESG have become a main concern, up from 58% in 2022. The result reflects the cost of insured damage for severe weather events ($3.1 billion) in Canada last year – the third-highest total of natural catastrophe losses in the country's history.

“Business leaders are feeling strained and challenged to confidently navigate a way forward. Risk should not define us but inform the steps we take. Embedding ESG into their strategy and having a fully thought-out business continuity plan will be vital for businesses that plan to grow,” said Aviva Canada CEO Jason Storah. “Insurers and brokers can help guide businesses to identify new and emerging risks in an ever-evolving economic climate where increasingly uncertainty is becoming the norm.”

Do the top five risks concerning Canadian business leaders, as told to Aviva Canada, match up to your expectations? Let us know in the comments below.