Last year’s top identified risk – pandemic outbreak – has dropped into seventh place for 2022, possibly suggesting that many companies have adapted to the ongoing situation and feel more prepared for similar future events. However, the risks occupying the top two slots, cyber incidents and business interruption continue to be shaped by Covid-19 even two years on. Climate change has moved up into third place, no doubt influenced in part by the recent COP26 conference and wider focus on sustainability and Environmental Social Governance (ESG).

Here we look at the Allianz Risk Barometer and select four risks which could have serious legal implications, before identifying ways by which a business can look to mitigate them moving forward.

Although the nature and number of risks can be daunting to many businesses, it’s essential that they’re taken seriously. There are several ways to mitigate the legal implications arising from these business risks:

Legal advice services - most small businesses don’t have the in-house legal expertise to deal with today’s challenges. Therefore, a good legal advice service could help reduce the risk of legal action by giving guidance and ensuring procedures are followed.

Consider protecting your business with legal expenses - it could provide cover for legal representation and cover for legal expenses in the event of a claim.

If something does arise?

Seek advice - it's important that your business seeks advice at the earliest opportunity from a trusted professional.

Clarify current protection - check to see what protection your insurance policies provide, perhaps in conjunction with your broker or preferred insurance professional.