Each year brings with it a collection of challenges for businesses to overcome, and 2017 is no different. According to a recent industry survey, the following three risks are the most significant that UK companies of all sizes will be confronted with this year:
Cyber incidents: Cyber incidents once again are the top risk facing UK businesses. Last year, cyber crime directly cost UK businesses about £11 billion, according to Action Fraud, whilst losses due to cyber crime coupled with cyber defence spending cost businesses more than £34 billion, according to the Centre for Economics and Business Research. What’s more is that 25 per cent of all businesses and 66 per cent of large businesses suffered a cyber attack last year, according to government research. Unfortunately, despite the potential damage that these attacks can cause, recent government research has shown that only half of all UK companies have taken the recommended steps to prepare for a cyber attack. Don’t be a statistic—protect your business with robust anti-virus and malware software. And remember to create a thorough employee cyber policy and procure comprehensive cyber cover.
Business interruptions: Whilst business interruptions encompass both tangible threats—such as fires and floods—and more abstract threats—such as cyber incidents and supplier failures—all have the potential to bankrupt your business or ruin your reputation. For the fifth consecutive year, business interruption —which includes supply chain disruption—is the top global risk for businesses, according to recent industry research. And the costs of business interruption remain high—the average business interruption insurance claim was nearly £2 million, which is 36 per cent higher than the average direct property damage loss. To safeguard your company against potential business disruptions, you should protect yourself with business interruption insurance.
Macroeconomic developments: It has been almost a year since Brexit and its effects will continue to be significant over the coming years. The decision has forced industries to reconsider established business strategies in this new and shifting economic landscape and will continue to do so as the full ramifications play out.
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