As we move into 2023, businesses across the UK are facing unprecedented risks that could have a significant impact on their operations. Tradesman Saver, a leading insurance provider for small businesses and tradespeople, has highlighted the top five risks that UK businesses are expected to face in the coming year. These risks have been identified based on insights from risk management experts across 94 countries and territories.
- Cyber incidents: Cyber incidents, including IT outages, ransomware attacks, and data breaches, remain the top risk for UK businesses. With geopolitical tensions and the ongoing conflict in Ukraine, the likelihood of large-scale cyber-attacks is increasing. Data breaches are a major concern for companies, as they can result in significant notification costs, fines, penalties, and reputational damage. Small businesses are particularly vulnerable to cyber incidents due to weaker security controls and fewer resources to manage the aftermath of an attack.
- Business interruption: Business interruption, including supply chain disruption, is another significant risk for UK companies. Despite efforts to diversify business models and supply chains after the pandemic, disruptions continue to persist. The recent turmoil in Ukraine and global supply chain issues, such as semiconductor shortages, are causing further strain on businesses.
- Macro-economic developments: Macro-economic developments, including inflation, deflation, and monetary policies, have emerged as a new risk in 2023. The simultaneous crises in the US, China, and Europe, along with the Russian invasion of Ukraine, have led to increasing energy prices and inflation. The UK is currently in a recession, with the economy expected to contract 0.7% in 2023. However, experts predict a return to growth during the second half of the year as inflation and energy prices stabilize.
- Energy crisis: The energy crisis is another new risk for 2023 that has impacted businesses. Energy prices have risen due to post-pandemic economic recovery, supply chain disruptions, and delayed maintenance work. The crisis intensified with the invasion of Ukraine by Russia, the world’s largest exporter of fossil fuels. Although the UK relies on Russia for less than 4% of its total gas supply, it remains susceptible to fluctuating international gas prices.
- Shortage of skilled workforce: The shortage of skilled workforce, a consequence of the Covid-19 pandemic and rising wage inflation, remains a risk for UK businesses. Many countries, including the UK, face a reduced workforce and high demand for labor. The situation is exacerbated by post-Brexit immigration rules. The construction industry is among the hardest hit, with 75% of contractors experiencing recruitment issues.
To mitigate these risks, Tradesman Saver offers tailored insurance solutions to protect businesses against potential losses. Public liability insurance can support businesses by covering legal fees and compensation payments in the event of accidents or injuries to third parties. Tradesman Saver’s team is committed to helping businesses navigate these risks and offers assistance through their website https://www.tradesmansaver.co.uk/public-liability-insurance/ or helpline.
Contact Details
Tradesman Saver
Chancery House
St Nicholas Way
Sutton
Surrey
SM1 1JB
0800 121 8748
tradesmansaver.co.uk
MEDIA CONTACT DETAILS: [email protected] 0800 121 8748
