Mac Nadel
Retail/Wholesale, Food & Beverage Industry Leader
Retail stores that sell food, drugs, and other household goods have some of the most complex risk profiles of any business. The largest and most pervasive risks include:
- Cyber: More stores are engaged in e-commerce as consumers express preferences for online ordering. Adding technology and data streams increases the risk of cyberattacks, breaches, and shutdowns.
- Business interruption: Supply chains for supermarkets, convenience stores, and drug stores can be highly complicated and exposed to disruption from multiple sources.
- People risks: Injuries and illnesses involving employees, customers, and others who enter your stores, including suppliers and contractors, can account for significant direct and indirect financial losses. From workers' compensation to third-party slip-and-fall claims, to wage-and-hour lawsuits, to incidents of foodborne illness, to workplace violence, stores face numerous liability exposures.
- Product contamination/product liability: If a product causes harm to customers, such as a foodborne illness or other bodily injury, your organization can suffer significant financial and reputational damage. Businesses should implement proactive risk management and transfer strategies to mitigate these risks.
- Property damage: Fire, flood, windstorm, and other risks to your store locations can cause significant losses.
- Competition: In the crowded retail sector, there is increased pressure on margins, employee retention, and product and service offerings. Careful management of operational and people risks is critical to sustain competitiveness and remain resilient.