As leaders in global business risk, since 2009 Lloyd’s has commissioned the biennial Lloyd’s Risk Index to assess attitudes to risk among business leaders across the world. The Lloyd’s Risk Index 2013 is based on a global survey of over 500 C-suite and Board level executives conducted by Ipsos MORI for Lloyd’s during April and May 2013. The survey asked respondents about their attitudes to 50 risks across five categories:
- Business and strategic risk
- Economic, regulatory and market risk
- Political, crime and security risk
- Environmental and health risk, and
- Natural hazard risk.
Respondents rated both these overall risk categories and the specific risks within them according to both how high a priority these risks were and for how prepared they felt their companies were to manage them. 0 indicted the lowest level of priority or preparedness and 10 was the highest.
500 C-suite and Board level executives were surveyed. 75% represented smaller businesses with annual turnover of US$499m or less, and 25% were from larger companies with annual turnover of US$500m or more. They were globally distributed as follows: Europe (28%), North America (26%), Latin America (10%) and Asia Pacific (26%). South African respondents made up the remaining 26%.
Tax uncertainty is greatest fear for global businesses is tax, according to the Lloyd’s Risk Index 2013. The survey shows that business leaders across the world are most worried about understanding their current and future tax commitments, and claim it is the biggest risk faced by their organisation.
Against a backdrop of continued economic turbulence as businesses across the world attempt to emerge from the financial crisis, taxation is deemed to be the highest risk priority globally, soaring up the risk ranking from 13 to first and displacing fears over a fall in orders - the greatest concern for businesses according to the 2011 Risk Index.