“As boardrooms prepare for risks on the horizon, it is encouraging that 37% of boardroom executives in Singapore are planning to explore insurance options that include risk and crisis management. In 2024, the insurance industry has a large role to play in helping businesses as they grow and protect their assets” Lucien Mounier, Head of Asia Pacific at Beazley
Singapore:
Beazley, a specialist insurer, has published its Singapore Snapshot Report, the latest report in its Risk & Resilience research series.
The report examines perceptions around business and technology risks among businesses based in Singapore with international operations, as executives navigate emerging risks, from the impact of climate change to new regulations and the rising threat of cyber risks.
Business leaders in Singapore perceive the cyber threat to be one of the most significant risks they face, with 25% citing it as their top concern in 2023.
However, this is projected to marginally increase to 26% during 2024.
It is concerning that more than one in five (21%) of businesses in Singapore feel unprepared to deal with cyber risks. This rises to 31% among small businesses with revenue between SGD$1m to SGD$9.99m.
As a result of this unpreparedness, over a third (37%) of businesses plan to invest in improved cyber security measures.
Lucien Mounier, Head of Asia Pacific at Beazley said,“ APAC businesses are facing a varied threat landscape. In particular, Singapore-based executives face a spectrum of challenges, such as new ESG regulations, a diverse workforce stemming from Singapore’s status as a regional hub, and growing vulnerability to cyber attacks, and our data reveals that preparedness for these new challenges is becoming harder.
“As boardrooms prepare for risks on the horizon, it is encouraging that 37% of boardroom executives in Singapore are planning to explore insurance options that include risk and crisis management. In 2024, the insurance industry has a large role to play in helping businesses as they grow and protect their assets.”
Threat posed by employer risks set to rise significantly in 2024
In the post-pandemic age, where businesses are still adapting to new working practices, our data shows that businesses in Singapore are increasingly concerned by employer risks and the challenge of supporting staff whether that be with mental health issues or creating a safe environment to work in, with 23% of executives ranking employer risk their top business concern this year. This is a rise of 3 percentage points from 2023.
However, executives in Singapore are struggling to meet their responsibilities to employees in the post-pandemic age with 26% feeling unprepared to deal with employer risks.
Singapore’s executives pivot to meet new ESG requirements
The data further highlights the challenges presented by new Environmental, Social and Governance (ESG) regulations with 19% of Singapore’s boardrooms ranking ESG risk as the number one risk they currently face. This is set to marginally increase up to 20% during 2024, demonstrating that keeping pace with new ESG regulations while maintaining efficiencies is a growing challenge for businesses in Singapore.
The data shows that Singapore’s businesses feel more prepared to deal with ESG risks than executives other countries. Over three quarters (76%) of Singaporean business executives feel prepared against ESG risks, compared to 75% in the UK, 69% in the US and 68% in Canada.