A new study by Marsh reveals that businesses in the UK are most concerned about economic challenges, cyber threats, and people-related risks.
Now in its fourth year, the broking giant’s “UK Business Risk Report” found that 43% of firms see financial difficulties as their biggest worry, while 39% are troubled by cyber threats and 38% are anxious about workforce issues.
The resource drew insights from over 2,000 UK business leaders and sole traders, examining the risks impacting their operations. Despite some positive economic signals, concern about financial instability has surged, with a notable jump from 37% in 2023 to 43% this year.
Key drivers of the anxiety include inflation, the threat of recession, cash flow challenges, and fluctuating exchange rates. Additionally, rising interest rates have limited access to affordable financing, intensifying the strain on businesses.
Cybersecurity concerns have also seen a significant rise. In 2023, only 20% of respondents flagged cybercrime and IT disruptions as major threats, but this figure has now climbed to 39%. Cyber risks, including ransomware attacks and data breaches, remain top of mind as businesses adapt to an increasingly digital landscape.
Workforce challenges persist as another major issue, with growing difficulty in attracting and retaining talent. Leaders also expressed ongoing concerns about employee mental health, particularly in sectors such as healthcare, education, and retail. Mental wellbeing remains a priority, with many businesses planning to expand support programs for their employees in the coming year.
Meanwhile business leaders are not only aware of these risks but are actively seeking solutions. Over the next 12 months, companies plan to increase investments in cybersecurity, evaluate risks within their supply chains, and enhance employee benefits, including mental health support and professional development opportunities.
Alistair Fraser (pictured), chief executive of commercial and corporate at Marsh UK, commented: “So far this year, in the face of a myriad of shifts and disruptions, UK businesses have navigated a landscape fraught with interconnected risks which has tested their resilience.
“From fluctuating markets and trade uncertainties to the ever-looming fear of cyberattacks, businesses have had to stay vigilant and proactive in safeguarding their operations and protecting their stakeholders.”
Nick McMenemy, digital, strategy, and markets leader at Mercer Marsh Benefits, added: “This year’s risk report reveals the scale of the challenges facing businesses and the need for urgent action – as talent attraction and retention, and workplace culture persist as major issues.”
Both Fraser and McMenemy emphasised the importance of a holistic approach to risk management, encouraging businesses to address interconnected challenges rather than focusing on isolated issues. By doing so, companies can strengthen their resilience and ensure sustainable growth amid an uncertain environment.
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