Business Tips

The 5 Biggest Business Risks in 2024

Business risks are prevalent and always around. There isn’t much we can do about them apart from insulating ourselves through identifying and acknowledging that they exist. From facing costly interruptions to changing consumer preferences, there are many risks that your business can face as the year continues ahead. So, here are some of the worst to watch for in 2024.

 

Unauthorized Access to Data

Cyber attacks are becoming almost routine for all sectors. From Fortune 500 companies to non-profit social housing, no one is off limits when it comes to valuable data being stolen. That’s why enterprise ransomware protection for your business is vital. Even AI can get in on the action and write a convincing phishing email for wannabe cybercriminals. Among the most damaging is ransomware. Poor security results in lost funds and possible reputational damage.

 

Interruptions to Business

Covid-19 saw the most considerable interruption to business in living memory. Of course, this is a specialized case. But even minor disruptions, such as equipment malfunctions, can have a major impact on any company. With disruption comes ceased trade, resulting in financial losses. Then, there is the reputational impact from the court of public opinion. It is likely you will lose customers as they seek an alternative and are more than likely to stick with the competition.

 

Supply Chain Business Risks

Sustainable business growth is the key to a health market but all are subject to supply chain issues. Problematic supply chains can cause immense damage to any company. During one of the worst in recent times in 2022, the average medium to large company lost over $80 million. The tech sector was hit hardest as computer chip manufacturing ground to a halt. In 2024, we could face more supply chain issues owing to the current Red Sea shipping problems.

 

Changes in Consumer Preference

What customers want changes all the time. A good business listens and reacts rather than trying to tell them what to buy. Today, there is a growing shift towards customers (typically Gen-Z) only buying from sustainable companies. However, taking advantage of ignorance is pretty easy, as recently demonstrated by the boom in lab-grown diamonds. Often touted as ethical, they are among the most polluting products in today’s markets that sell in abundance.

 

Lack of Talented Workers

Finding the right people for the job is always a challenge. It can cost an obscene amount of money to endure a recruitment process. Today, it is getting even more complex as some industries are struggling to fill positions. This includes teachers, pilots, and construction workers. Blue-collar jobs are being shunned in favor of high-paying roles being sought by unqualified younger people. But standards are also too high for some roles, such as cybersecurity.

 

Summary

Criminal access to company data is a huge business risk that is growing this year. There are still supply chain issues plaguing some sectors, which may get worse due to specific ongoing global issues. And a lack of talented workers is causing problems in many blue-collar industries.

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