New Beazley research finds Singapore business is more worried about risk and less resilient than its global peers

Latest Risk & Resilience report reveals that business leaders in Singapore display an admirable respect for the risks they face but climate change needs to urgently move up the agenda

Key findings:
 

• 35% of Singapore-based business leaders feel they operate in a high-risk environment - almost 10% more than global peers
• Only 23% report feel highly resilient - in marked contrast to the US where 34% report feeling highly resilient.
• Just 15% place climate change as their top environmental risk and only 27% feel very prepared to address this risk
• Supply chains are key to this trading city state but they are perceived as high risk with resilience low

Singapore’s businesses face a risky world and lower resilience

  

 

Percentage saying the environment is high risk and their levels of resilience are high

Climate change needs to move higher up the risk agenda

Pandemic risk remains a big concern across Asia, but could it be that the focus on this immediate threat is deflecting businesses from looking at the long term problem of environmental risk?

Singapore’s risk and resilience matrix (below) shows that all environmental risks, with the exception of pandemic, fall well below the Beazley Risk & Resilience high-risk category line. So it’s a reasonable to ask, are Singapore based business leaders complacent about environmental risks?
 

Lessons from the supply chain crisis need to be learnt

Singapore is a vital lynchpin in global supply chains and as an urban centre,
it is heavily reliant on imports. These two factors are coming together to focus thoughts on supply chain risk and resilience. With 27% identifying it as their top risk. While only 28% declare they feel ‘very prepared’ to deal with supply chain issues against a global average of 35%.

Lucien Mounier, Head of Asia Pacific for Beazley commented:
“Fortune may favour the bold, but in an increasingly uncertain world,
the thoughtful approach that Singapore’s business leaders take to risk is reassuring. They are more aware of the risks they face and are more cautious about their levels of resilience.”

“On the issue of the environment and climate change, business needs
to be bolder and actively invest in strategies to address environmental risks including focusing on the regulatory complexity of ESG reporting and the consequent liabilities that come with it.”

“While insurance is not a panacea for climate risk or a complete answer to creating a more resilient business environment, it is clear that as we move into in a world where more economic uncertainty seems likely, business leaders need to be able to rely on their insurers for support in building resilience.”

All data referred to in this announcement can be found in our Singapore Risk & Resilience report, unless otherwise stated.