Marsh McLennan highlights the primary concerns for UK businesses over the next year. The TOP-3 issues identified are economic and financial challenges (43%), cyber threats (39%), and people-related risks (38%).
These insights come from the 2024 UK Business Risk Report, which surveyed over 2,000 business leaders and sole traders across the country. Now in its fourth edition, the report provides a clear view of the emerging risks businesses face.
Economic concerns have intensified, with 43% of business leaders worried about economic and financial risks, up from 37% in 2023.
These risks include inflation, potential recession, cash flow problems, currency fluctuations, and credit risk. High interest rates are also limiting 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.
Alistair Fraser, CEO of Commercial and Corporate at Marsh UK, noted that businesses are navigating a complex landscape of interconnected risks, ranging from market fluctuations and trade uncertainties to the growing threat of cyber attacks.
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.
Workforce challenges have also become more pressing. Companies are struggling to recruit and retain talent, with mental health and well-being remaining major concerns, especially in sectors like healthcare, education, retail, and professional services.
Over the next year, business leaders plan to focus on strengthening cybersecurity, assessing supply chain and customer relationship risks, and improving employee support through enhanced health benefits, training, and mental health resources.
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.
Nick McMenemy, Digital Strategy and Markets Leader at Mercer Marsh Benefits, stated that talent attraction and retention remain key issues.
by Yana Keller