Healix outlines operational risks for international business
Travel assistance and risk management provider Healix International highlighted political extremism and climate change as key risks to businesses in 2023
Healix International has outlined five operational risks set to challenge businesses in 2023, as part of its annual Risk Outlook report.
“Business leaders will be well aware of the various disasters and emergencies playing out on the global stage, yet some are inadequately equipped to mitigate the risks they pose to business assets and personnel,” said Chris Job, Director of Risk Management Services at Healix. “Having a sense of the main risks faced by their company cannot alleviate the threat itself, but it can provide business leaders with the ability to proactively implement the necessary measures to enhance their current security procedures.”
Security and health risk services company International SOS also released its interactive Risk Map 2023 earlier this month.
‘Diversification’ of global extremism
Healix noted that the trend in extremist behaviour in 2022 was towards greater diversification – away from more traditional terrorist ideologies.
Consequently, the company recommended that businesses should be ‘vigilant’ in their duty of care responsibilities towards staff travelling abroad, ensuring ‘the appropriate level of risk mitigation is in place’. This could include mobile phone tracking, as well as an evacuation route if necessary.
“Islamophobia, antisemitism, anti-LGBTQ+ sentiment, white supremacism, anti-establishment thought and sexism have further broadened the kaleidoscope of extremist beliefs, while more traditional insurgent groups continue to be highly active,” the company stated.
Deepening political polarisation
Alongside growing extremism, Healix said that political polarisation had grown, becoming a feature in numerous elections throughout 2022 and ‘impacting previously more neutral systems such as Sweden’. Likewise, in Italy, right-wing Georgia Meloni succeeded in becoming the first woman to win the Italian premiership through an election campaign premised on nationalism and anti-European Union rhetoric.
The company explained that ‘this trend looks set to continue into 2023 with elections in Colombia and Brazil going in the same direction’, adding that: “Businesses regularly deploying personnel abroad will find that previously benign areas are now mired in political and social unrest. As such, companies will have to tackle extra security and operational risks by enhancing their existing safety measures.”
Growing risk of climate-related crises
Healix also highlighted the growing threat of severe weather incidents, driven by the impact of global climate change, adding that ‘once in a century, extreme climate events are now a yearly occurrence’.
It recommended that businesses should put stronger measures in place to mitigate the risks of such events when caring for both its regular operational activity and travelling staff – particularly in regional hotspots.
It highlighted extreme rainfall in October 2022 in Pakistan which resulted in 1,700 fatalities and flooding across 75 per cent of Sindh Province.
In late September, Hurricane Ian caused widespread infrastructure damage in Cuba and Florida, coupled with Australia’s wildfire season, which has increased by an average of around 27 days over the past 40 years.
Digitalisation increasing potential cyber risks
The growing digitisation of the workplace is presenting greater opportunities for cyber attacks, ‘as more network-connected personal devices come on the scene and hybrid [or remote] working increases’. Healix recommended that businesses needed to ‘firm up’ cybersecurity measures, while ‘cultivating employee awareness and vigilance’.
The company saw 15 million data breaches worldwide in the third quarter of 2022, as a result of the accelerated digitisation of business.
Another recent report by Allianz Partners reinforces this need, noting that the adoption of remote working is ‘here to stay’.
Energy crisis
The ongoing energy crisis caused by Russia’s invasion of Ukraine has the potential to incur additional business costs. Healix highlighted that the Russian government continues to ‘weaponise’ gas exports – which have already fallen by almost a third (30 per cent) since the start of the war. Consequently, businesses could remain exposed to financial risk.
At its most extreme end, energy shortages can exacerbate civil unrest, as seen earlier this year in Sri Lanka – presenting a potential risk for expat workers.