Lehigh Risk Management Index Q3 2024 Report

Cybersecurity continues to pose the highest overall risk at 77.69, although there has been a noticeable decrease from the previous quarter. This decline suggests ongoing concerns about cyberattacks, data integrity issues, data breaches, viruses, and the effectiveness of security measures. Conversely, government intervention has risen sharply to 74.62, marking its highest level in the past four years. This increase underscores managers' apprehensions regarding tariffs, trade disputes, and regulatory constraints affecting supply chains, methodologies, and technologies.

Economic risk has ascended to the third highest concern at 72.31, driven by worries about escalating energy expenses, fluctuations in commodity prices, labor shortages, sudden shifts in demand, global energy supply constraints, and delays at borders. Across all risks analyzed, economic factors remain the predominant worry. Customer risk, ranked fourth highest, reflects ongoing anxieties over evolving customer preferences, potential erosion of customer loyalty, changing demographics, unpredictable consumer behavior, and the challenges in delivering satisfactory customer service. The average risk index has marginally risen to 65.95 compared to the previous quarter, though it remains relatively low compared to historical averages.

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LRMI_2024_3rd_Quarter_Report_final2.pdf

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