UK businesses cite economic risks and cybercrime as top 2024 concerns: Marsh McLennan – Reinsurance News

According to new research from Marsh McLennan, a professional services firm focused on risk, strategy, and people management, the primary concerns for UK businesses over the next 12 months are economic and financial challenges (43%), cyber threats (39%), and people-related risks (38%).

These insights are drawn from Marsh McLennan’s UK Business Risk Report 2024, which surveyed over 2,000 business leaders and sole traders across the UK to explore the key risks impacting their operations.

Now in its fourth edition, the report offers a comprehensive view of the emerging trends that businesses are facing.

While some economic indicators have shown positive signs, the percentage of business leaders worried about economic and financial risks has reached a two-year high, climbing from 37% in 2023 to 43% in 2024.

Concerns include the effects of inflation, the possibility of recession, cash flow issues, currency fluctuations, and credit risk, with high interest rates further limiting companies’ access to affordable debt.

Cyber risks have also become a more pressing issue, with 39% of respondents identifying cybercrime and IT disruptions as significant threats, a marked increase from 20% in 2023.

Alistair Fraser, CEO, Commercial and Corporate, 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 cyber attacks, businesses have had to stay vigilant and proactive in safeguarding their operations and protecting their stakeholders.”

He continued: “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 intensified, with increasing difficulties in recruiting and retaining top talent. Furthermore, concerns about employee mental health and well-being remain prominent, particularly in sectors such as health and care, education, not-for-profits, professional services, and retail.

Over the next year, business leaders intend to prioritize strengthening their cybersecurity measures, assessing the risks associated with their supply chains and customer relationships, and enhancing employee support through improved health and benefits packages, as well as offering more training and mental health resources.

Nick McMenemy, Digital, Strategy and Markets Leader, 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.”

“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,” further stated McMenemy.