Internal risks threaten to sink SMEs over next 12 months

Workplace injury compensation claims are seen jumping 30%.

In the scramble to bolster defences against cyber threats and security risks, small and medium-sized enterprises (SMEs) in Singapore may be overlooking internal risks.

According to a report by AIG Singapore, the greatest risks SMEs will face in the next 12 months are due to internal factors.

Claims data revealed that the top three risks local SMEs face arise from workplace injuries (56%), fire or water damage to property (20%), and legal liability (20%). Further, AIG Singapore believes that the claims volume will stay in this range for the next 12 months.

In addition, workplace injury saw claims grow by 17% in 2015 versus 2014. For 2016, the sum paid for workplace injury compensation claims is also seen to spike by 20-30%.

“In fact, this year’s tough economic climate exacerbates the financial impact on SMEs. In the event of incidents such as fires, property damage, or floods, they may be hit with high costs and forced to stop operating for a period of time. SMEs need to look at how they can protect their business operations and get these operations back on track swiftly if incidents occur,” asserted AIG Singapore’s Head of SME Packages, Krishna Moorthi Sri Ramalu.