\r\n
London | 23 October, 2023
\r\n
According to new research by Marsh, the world’s leading insurance broker and risk advisor, companies across the UK are most concerned about the impact of financial uncertainty (34%), employee health and wellbeing (31%) and supply chain disruption (23%) on their businesses over the next 12 months.
\r\n
The findings come from Marsh’s UK Business Risk Report 2023, which features data obtained in May and June 2023 from over 2,100 UK businesses with turnover of between £100,000 and £500 million + per year. Now in its third year, the report explores how circumstances over the last 12 months have impacted the business risk appetite and approach to risk management among UK companies, and identifies their priorities for the year ahead.
\r\n
According to the research, financial uncertainty is the top risk facing UK businesses due to rising inflation, energy prices, and raw material costs. However, only 34% of respondents see it as a significant concern, the lowest percentage in the last three years (43% in 2021, 37% in 2022). This is due to businesses strengthening their financial resilience during the pandemic and a return to more familiar financial risks, post-Covid.
\r\n
Despite operating in a challenging trading environment, many UK businesses are optimistic about their financial prospects for the year ahead, with 50% expecting an increase in productivity, 47% expecting an increase in turnover, and 46% expecting an increase in profitability.
\r\n
Other findings include:
\r\n
- \r\n
- People-related risks are a top concern, with employee mental health and wellbeing (31%), talent retention, attraction and succession planning (22%), and health and safety of the public and employees (21%) taking second, fourth and fifth place respectively.
- Over the last 12 months, only 47% UK businesses addressed health and safety policies and procedures, and employee mental health and wellbeing offerings (51%). Looking ahead however, these are determined to be the top two ‘people’ priorities. Reviewing workplace culture and leadership is also a cited as a focus area for one in three businesses in the year ahead.
- Environmental, social and governance (ESG) standards were identified as a priority for the majority of UK businesses, with just over half (55%) of respondents understanding ESG requirements and half (50%) incorporating ESG into business strategy. Some are also already passing those expectations down through their supply chains with 48% of businesses having reviewed their suppliers’ ESG strategies over the last three years.
- While reporting on ESG performance is already mandatory for large UK businesses, the vast majority of respondents (76%) have not yet embedded ESG into their business strategies.
\r\n
\r\n
\r\n
\r\n
\r\n
Commenting on the findings, Alistair Fraser, CEO, Commercial & Corporate, Marsh UK, said: “The UK risk environment over the last year has been heavily impacted by macroeconomic changes, as well as the trickle-down effects of geopolitical events. From sole traders and fast-growing companies to large established corporates, no commercial entity in the UK is exempt from requiring a robust approach to risk management. This report tells a story of the very broad spectrum of risks facing UK businesses and provides practical advice on how to tackle them, helping strengthen the resilience that they need to grow with confidence.”
\r\n
\r\n
More information can be found at https://www.marshcommercial.co.uk/campaigns/risk-hub
\r\n
\r\n”}}” id=”text-3af3cb2ee5″>
Financial uncertainty, employee health and wellbeing and supply chain disruption revealed as top risks for UK business: March
London | October 23, 2023
According to new research from Marsh, a leading global insurance broker and risk adviser, UK companies are most concerned about the impact of financial uncertainty (34%), employee health and wellbeing (31%) and supply chain disruption (23 %) on their business over the next 12 months.
The findings come from Marsh UK Business Risk Report 2023, which contains data obtained in May and June 2023 from over 2,100 UK businesses with a turnover of between £100,000 and £500 million + per annum. Now in its third year, the report examines how the circumstances of the past 12 months have affected business risk appetite and approach to risk management among UK companies and identifies their priorities for the year ahead.
According to the research, financial uncertainty is the main risk facing UK businesses due to rising inflation, energy prices and raw material costs. However, only 34% of respondents consider it a serious problem, which is the lowest percentage in the last three years (43% in 2021, 37% in 2022). This is due to strengthening the financial resilience of businesses during the pandemic and a return to more familiar financial risks post-Covid.
Despite operating in a challenging trading environment, many UK businesses are optimistic about their financial outlook for the coming year, with 50% expecting an increase in productivity, 47% expecting an increase in turnover and 46% expecting an increase in profitability.
Other findings include:
- People-related risks are a top concern, with employee mental health and wellbeing (31%), talent retention, attraction and succession planning (22%) and public and employee health and safety (21%) coming in second. fourth and fifth place respectively.
- In the last 12 months, only 47% of UK businesses have addressed health and safety policies and procedures and offers for employee mental health and wellbeing (51%). Looking ahead, however, they are determined to be the top two priorities for “people.” A review of workplace culture and leadership is also cited as a focus area for one in three businesses over the next year.
- Environmental, social and governance (ESG) standards were identified as a priority for the majority of UK businesses, with just over half (55%) of respondents understanding ESG requirements and half (50%) incorporating ESG into business strategy. Some are also already communicating these expectations through their supply chains, with 48% of firms having reviewed their suppliers’ ESG strategies in the past three years.
- Although ESG performance reporting is now mandatory for large UK businesses, the vast majority of respondents (76%) have not yet implemented ESG into their business strategies.
Commenting on the findings, Alistair Fraser, CEO, Commercial & Corporate, Marsh UK, said: “The risk environment in the UK over the past year has been strongly influenced by macroeconomic changes as well as the trickle-down effects of geopolitical events. From sole traders and fast growing companies to large established corporations, no UK business is exempt from the requirement of a robust approach to risk management. This report tells the story of the very wide range of risks facing UK businesses and provides practical advice on how to deal with them, helping to build the resilience they need to grow with confidence.’
More information can be found at https://www.marshcommercial.co.uk/campaigns/risk-hub
