Today’s economy has impacted virtually every industry.

Here are key risks to watch to help your company get through it. 

The following Risk Matrix, produced by the editorial team at Risk & Insurance®, highlights the likely impact and frequency of 11 critical issues stemming from inflation, and economic volatility. 


Economic pressures in a recession create the perfect environment for cybercriminals. Short-staffed businesses are vulnerable and may see a jump in data breaches and ransomware attacks. As businesses look to increase efficiency via technology and third-party software applications, these tools may present increased cyber vulnerabilities. 

General Liability, Lead & Excess 

Liability lines are being impacted by wage, medical, and material cost inflation, driving up damage claims. Having strong safety policies and maintenance procedures can help protect your business and mitigate rising costs. 

Commercial Auto 

With continued supply chain delays, fleet maintenance has felt the pressure as wait times for replacement parts keep vehicles out of commission longer. Additionally, rising inflation is driving up repair costs. 


Material cost inflation, supply chain delays, and labor scarcity are increasing property repair and replacement times and costs. Maintaining current property valuations and assessing full business interruption exposure can help reduce the risk of being underinsured. 

Workers’ Compensation 

Wage and medical cost inflation are driving up workers compensation costs. Understaffing due to labor shortages or layoffs in a recession also place increased strain on existing employees, especially low-tenured employees, heightening safety risks. 

Healthcare and Medical Malpractice 

The healthcare industry faces many financial and operational challenges including rising costs of labor, drugs, and supplies. Medical errors may rise due to short staffing, increased reliance on contract traveling nursing staff, and clinician burnout. 


Economic volatility presents challenges in forecasting and business planning. Directors and officers could face potential mismanagement or misrepresentation claims by investors and creditors due to financial underperformance or bankruptcy. 

Political Risk 

The Russia-Ukraine war, a continued pandemic, and more — political risks and their impact on global economic trends have stalled operations and increased financial losses for businesses. 

Employment Practices Liability 

Mass layoffs as a result of an economic downturn can give rise to an uptick in claims for wrongful termination and discrimination. 


Rising interest rates can affect investment in construction projects and financial volatility can increase project cancellation risks. The Federal Reserve raised rates seven times in 2022, bringing the target range to 4.25%-4.50%. 

Trade Credit 

Persistent market volatility on top of the disruptions caused by the pandemic are increasing the risk of financial losses and customer nonpayment. The International Monetary Fund lowered its growth projections three times in 2022, expecting a $4 trillion drop in growth through 2026. 


Note: The Risk Matrix is produced by the Risk and Insurance® editorial team. Liberty Mutual Insurance is the presenting sponsor and has no responsibility for the content.