Each new year brings with it a collection of challenges for businesses to overcome, and 2017 is no different. That is why your company needs to be adequately prepared for this year’s forecast, which includes digital threats and shifting economic conditions. According to a recent industry survey, the following three risks are the most significant and worrisome 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 BIs 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. In fact, in 2016, the average BI insurance claim was nearly £2 million. To safeguard your company against potential business disruptions, you should protect yourself with BI insurance.
- Macroeconomic developments: It has almost been a year since Brexit caused a sea change throughout the country and its effects are still being felt today. The decision has forced industries to reconsider established business strategies in this new and shifting economic landscape. That is why it is critical to explore each facet of your organisation in order to identify new strategies and options.