The top risks for UK businesses in 2017
Posted on: 09 February 2017
The annual Allianz Risk Barometer identifies the top corporate perils, and potential responses, for 2017, based on the insight of more than 1,200 risk experts from 50+ countries. We have taken the most important risks for businesses in the UK as identified by those surveyed in the UK.
Cyber incidents, business interruption and macroeconomic developments have been identified as the top three risks by the majority of UK risk experts surveyed. Cyber incidents takes the top spot the second year running. The threat now goes far beyond hacking and privacy and data breaches and the toughening of data protection regulation is contributing to this risk being at the forefront of risk experts minds, as penalties for non-compliance will be more severe.
Business interruption (BI) features as the second most important risks for businesses in the UK, but has been identified as the top risk globally for the fifth successive year. Physical perils such as fire and explosion feature in the top causes of BI that businesses fear more, but non-physical or non-damage causes of BI are becoming a much bigger issue, e.g. supplier failure or cyber incidents. Macroeconomic developments hold the third position, having been identified as sixth last year.
Companies worldwide are bracing themselves for a year of increased uncertainty, driven by growing concerns over political, legal and regulatory developments around the globe.
With figures representing a percentage of all relevant responses, the ten most important risks for business in the United Kingdom for 2017 were identified to be:
2016 rank: 1 (65%)
2016 rank: 6 (21%)
Brexit and Euro-zone disintegration
2016 rank: 10 (6%)
2016 rank: 5 (24%)
Political risks and violence
2016 rank: 6 (21%)
2016 rank: 4 (32%)
Loss of brand value or reputation
2016 rank: 3 (38%)
Changes in legislation and regulation
2016 rank: 2 (41%)
2016 rank: 8 (15%)