Irish business leaders are increasingly focused on staff pressures, mounting costs and digital risks, while placing far less emphasis on threats such as physical crime, legal disputes or debt servicing, a new report shows.
The inaugural Business Risk Index for Ireland, compiled by insurance broker Gallagher, shows a shifting landscape of concern and operational uncertainty.
The report, which captures the views of 200 leaders across small, medium and large enterprises, highlights that today’s commercial risk environment is being shaped less by traditional threats, and more by evolving workforce and cyber threats.
The top concern for Irish businesses right now is employee retention, cited by 29 per cent of respondents, with this figure rising to 40 per cent among companies employing more than 150 people.
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Next is the cost-of-living crisis, seen as a serious threat by 27 per cent of businesses and most acutely felt by companies with between 10 and 50 employees, where concern spikes to 34 per cent.
Concerns around sector competition (22 per cent), cybercrime (21 per cent) and a lack of skilled talent (19 per cent) also rank high on the corporate risk radar.
The cost of salaries was flagged as a risk by 15 per cent of respondents, as was the cost of materials (14 per cent), and compliance with regulations (14 per cent). These challenges are affecting firms across all sectors and sizes.
Risks related to legal issues – with employees, clients or suppliers – as well as business interruption, vandalism or theft, and the cost of servicing debt, were among the least frequently mentioned.
When asked about the broader trading environment, Irish business leaders were notably cautious. More than one in three (35 per cent) said that trading conditions had worsened over the past 12 months and that it was now riskier to run a business.
Another 24 per cent felt that although the trading environment had not changed dramatically, the type of risks they face has evolved.
About 20 per cent of businesses reported stability in both trading and risk terms – a view most common among smaller firms. Just 5 per cent said that the environment had become less risky.
