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Retail Risks and Strategies


Competition in the retail environment is brutal. Any operator — Old, new, big, or small — can be pushed out of business, as was evidenced by the huge number of physical store closings over the past year.

Retailers today are seeking new ways of working, aligning their business models to the modern world. Successful retailers of the future will be those who position themselves to both respond to and master the highly dynamic marketplace in which they operate.

The retail environment of the future will increasingly see retailers operating smaller physical stores, with online stores being used to capture trade. This new mix will come with a set of modern challenges and present yet more to consider from a risk perspective.

The questions those responsible for insurance need to ask are what impact this evolution is having on the retail landscape, and are the new risks, such as a malicious cyber-attack, or a knife wielding assailant considered under current arrangements?

Modern Challenges That Need Risk Management

  • Protecting Brand and Reputation
  • Increasing use of technology
  • Customer acquisition and retention
  • Workforce
  • Highly competetive market
  • Environmental sustainability
  • Terrorism
  • Growing Security Challenges

Assess the impact of new and emerging risks

Our team of experts can assist you in the following ways:

  • Assess the impact of new & emerging risk.
  • Re-design risk and insurance programmes using new solutions to protect new risk realities.
  • Understand the importance of opportunity risks to your future growth.
  • Map risks that could impact the success of your organisation.


The most successful retailers will be the businesses who react quickest to the dynamic marketplace. They will obtain deeper data than their competitors and use it to deliver superior products to their customers. They will prepare for the unexpected. With risk profiles increasingly interconnected in today’s rapidly changing world, survival will depend on how resilient organisations can be to manage disruption, no matter its source. The right mix of traditional and advanced risk mitigation and risk transfer strategies is pivotal to protecting future enterprise value.

Three takeaways

  1. Establish processes to identify new and emerging risks.
  2. Create and implement solutions for emerging risks that exceed risk acceptable thresholds, including those previously considered “uninsurable”.
  3. Ensure risk financing programmes move at pace, aligning protection to match risks created by the highly dynamic retail environment.