The COVID-19 pandemic has changed the way organizations operate, introducing a host of business risks. To better understand this dynamic risk environment, AuditBoard surveyed more than 2,000 attendees at our recent virtual conference about the risks they will face in 2021. Respondents felt that three major risks will require the bulk of their attention moving forward: economic threats impacting [business] growth, cybersecurity threats, and business continuity and crisis response. Organizations that take proactive measures now to address these risks will give themselves a better chance to succeed as we continue to navigate the pandemic.

Major Risks Have Ripple Effects on Businesses
Unsurprisingly, economic threats impacting growth was the number one risk on most respondents’ minds. Business leaders outside of the sample group echoed this concern, with CEOs of major companies expecting financial hardships to continue through the end of 2021 and beyond. Recessions squeeze everyone’s margins, impact demand, and make it tough to hire and retain employees. The current economic landscape has led to bankruptcies, contractions, and layoffs.

Predictive modelers told California regulators on Thursday that the state’s antiquated rules for calculating wildfire risk when setting property insurance rates discourage innovative mitigation measures that could ultimately reduce losses.

Nancy P. Watkins, a principal and consulting actuary for Milliman, said during a webcast on “home hardening” hosted by the state Department of Insurance that California is one of only three states that doesn’t allow insurers to use catastrophe modeling to determine wildfire risk. Rates must be based on historical losses.

Watkins said that is a “very simple” method of ratemaking. “It’s kind of like expecting the Rocky Mountains to be flat because we just drove through Kansas and Missouri,” she said.

California’s earthquake early warnings will be a standard feature on all Android phones, bypassing the need for users to download the state’s MyShake app in order to receive alerts, the Governor’s Office of Emergency Services said.

The state worked with the U.S. Geological Survey and Google, the maker of Android, to build the quake alerts into all phones that run the commonplace operating system. The deal was expected to be announced Tuesday.

First Street Foundation, a nonprofit agency, is making accurate climate change-adjusted flood scores available for every property in the U.S. today. There are government-produced maps showing 8.7 million homes and properties at significant flood risk—and it turns out those may have underestimated the amount of real estate at risk by 67%. Or, in other words, an additional 6 million properties face a significant risk of flood.

Before these individual property scores were available, there was no easy way for your average homeowner or buyer to understand the flood risk associated with specific properties. That’s particularly problematic because climate change is causing flood risk to increase; there are more extreme rain events and coastal flooding than there used to be.