London | October 9, 2024
According to new research by Marsh McLennan, economic and financial challenges (43%), cyber threats (39%) and people-related risks (38%) are the top three concerns facing UK businesses over the next 12 months.
The findings come from Marsh’s UK Business Risk Report 2024 which surveyed over 2,000 business leaders and sole traders across the UK about the key risks facing their business. Now in its fourth year, the report provides insights and solutions into the emerging trends impacting companies and their operations.
Despite recent positive economic indicators, the proportion of business leaders concerned about economic and financial risks reached its highest level in two years, rising from 37% in 2023 to 43% in 2024. Issues such as the impact of inflation, the risk of recession, cash flow, currency volatility and credit risk were cited as specific worries, while interest rates continue to restrict companies’ access to affordable debt.
Businesses’ concerns around cyber risk also increased sharply year on year, with 39% of respondents highlighting cybercrime and IT disruption as key risks facing their business, compared with 20% in 2023.
The leaders surveyed said challenges around hiring top talent and retaining employees had also risen year on year. Concerns around the mental health and wellbeing of their workforce also persisted, particularly for businesses in the health and care, education, not-for-profit, non-finance professional services, and retail industries.
Over the next 12 months, business leaders said they planned to prioritise investment in improving their cyber security controls, reviewing the risks associated with their supplier and customer base, and enhancing the health and benefits package, training and mental health support they offer to their employees.
Commenting on the findings, Alistair Fraser, CEO, Commercial and Corporate, Marsh UK, said: “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 cyber attacks, businesses have had to stay vigilant and proactive in safeguarding their operations and protecting their stakeholders.
“This report highlights that by taking a proactive approach to risk management, businesses of all sizes and in all industries across the nation are able to fortify their defences in order to maintain stability and sustain growth.”
Nick McMenemy, Digital, Strategy and Markets Leader, Mercer Marsh Benefits said: “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. The war for talent is intensifying due to a variety of linked economic and cultural reasons, with nearly a third of respondents saying that recruiting and retaining staff is a key concern. Businesses must adopt an enterprise-wide approach that addresses the interconnected nature of risks, rather than focusing on a single dominant issue, in order to build resilience and navigate through these challenges.”
