Note: The Risk Matrix is produced by the Risk and Insurance® editorial team. Liberty Mutual Insurance is the presenting sponsor and has no responsibility for the content.
Increased cost of insurance
Energy price increases
Financial Performance
Construction defects
Quality Challenges
Bullwhip effect
Shipping Delays
Rising interest
rates
Breach of Contract
frequency
impact
Labor
Shortage
Having untrained, unskilled, or
overworked staff can present workers compensation risks. One third of work-related, nonfatal injuries affect employees who’ve been on the job less than a year.
Learn More
Labor and materials shortages have
driven up property and auto repair prices, increasing claims costs. Additionally, delays to secure parts can cause prolonged equipment downtimes. These rising costs may be reflected in the cost of risk over time.
Learn More
Increased tariffs, a global pandemic
and the ongoing war in Ukraine have led to increased energy prices, which elevate raw material and transportation costs throughout the supply chain.
Learn More
Inflation is straining many companies’
business models and presenting
challenges in forecasting financials. Companies’ inability to fulfill consumer demand can also present reputational risk that can affect their financial performance and investor confidence.
The lack of skilled craftsmen and
materials can lead to material substitutions and quality issues, which can elevate construction defect risks.
Learn More
Supply issues have left companies
looking for new vendors to help complete orders. But fast-tracking vendor selection and a lack of experienced staff can lead to quality control issues and open businesses to product liability claims.
Learn More
To offset the risk of future inventory shortages, companies may look to secure larger quantities of materials, compounding inefficiencies as inventory gets stockpiled throughout the supply chain. Property coverages may need to scale to match changing inventory levels.
Learn More
Unfulfilled or delayed orders can be
seen as breach of contract. This presents a D&O risk against suppliers. Contract scrutiny and incorporating flexibility into terms can help protect businesses.
Ports are severely backlogged as
global shipping volumes varied dramatically over the past two years. A shortage of truck drivers created additional strain, further compounding the increased cost to transport goods.
Learn More
To combat inflation, the Federal
Reserve is increasing interest rates, which can affect companies’ ability to secure financing for their operations.
impact
Labor Shortage
Financial Performance
Construction defects
Increased cost of insurance
Energy price increases
Quality Challenges
Breach of
Contract
frequency
Having untrained, unskilled, or
overworked staff can present workers compensation risks. One third of work-related, nonfatal injuries affect employees who’ve been on the job less than a year.
High impact
High frequency
Labor Shortage
Learn More
Labor and materials shortages have driven up property and auto repair prices, increasing claims costs. Additionally, delays to secure parts can cause prolonged equipment downtimes. These rising costs may be reflected in the cost of risk over time.
High impact
High frequency
Increased cost of insurance
Learn More
Increased tariffs, a global pandemic and the ongoing war in Ukraine have led to increased energy prices, which elevate raw material and transportation costs throughout the supply chain.
High impact
High frequency
Energy price increases
Learn More
Inflation is straining many companies’
business models and presenting
challenges in forecasting financials. Companies’ inability to fulfill consumer demand can also present reputational risk that can affect their financial performance and investor confidence.
High impact
Low frequency
Financial Performance
The lack of skilled craftsmen and materials can lead to material substitutions and quality issues, which can elevate construction defect risks.
High impact
Low frequency
Construction defects
Learn More
Supply issues have left companies looking for new vendors to help complete orders. But fast-tracking vendor selection and a lack of experienced staff can lead to quality control issues and open businesses to product liability claims.
High impact
Low frequency
Quality Challenges
Learn More
To offset the risk of future inventory shortages, companies may look to secure larger quantities of materials, compounding inefficiencies as inventory gets stockpiled throughout the supply chain. Property coverages may need to scale to match changing inventory levels.
Low impact
Low frequency
Bullwhip effect
Learn More
Unfulfilled or delayed orders can be seen as breach of contract. This presents a D&O risk against suppliers. Contract scrutiny and incorporating flexibility into terms can help protect businesses.
Low impact
Low frequency
Breach of Contract
Ports are severely backlogged as global shipping volumes varied dramatically over the past two years. A shortage of truck drivers created additional strain, further compounding the increased cost to transport goods.
Low impact
High frequency
Shipping Delays
Learn More
To combat inflation, the Federal Reserve is increasing interest rates, which can affect companies’ ability to secure financing for their operations.
Low impact
High frequency
Rising interest rates
Bullwhip effect
Rising interest rates
Shipping Delays
Note: The Risk Matrix is produced by the Risk and Insurance® editorial team. Liberty Mutual Insurance is the presenting sponsor and has no responsibility for the content.