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Aviva examines risks to UK businesses in new report

Aviva examines risks to UK businesses in new report | Insurance Business UK

Aviva examines risks to UK businesses in new report

Aviva has published the second edition of its annual look into the biggest risks facing businesses in the UK, and public health events no longer holds the top spot.

According to the 43-page 2021 Aviva Risk Insights Report, below are the major risks that business leaders believe they are particularly exposed to.

Risk

2021

2020

Economic concerns

37%

26%

Shortage of skilled workforce

28%

17%

Loss of reputation and brand value

26%

29%

Impacts of Brexit

25%

N/A

Public health events

24%

46%

Business interruption including supply chains

24%

32%

Changes in legislation and regulations

22%

35%

Cybersecurity and cyber incidents

20%

27%

Market developments

17%

16%

Mental health and well-being

16%

19%

New and changing technology

16%

16%

 

Not included above is climate change, with only 8% of respondents citing it as among the biggest risks they face. Of those who did, however, 67% think it’s an urgent and worrying risk.

“Aviva’s Risk Insights Report captures British businesses as they emerge from the pandemic, eager to grow, but still clearly constrained by a host of pressing and interconnected risks,” said UK & Ireland general insurance chief executive Adam Winslow.

“While some risks are not wholly in our control, there is much we can do to mitigate them. Concerns about the economy, the workforce, and the trading environment cannot be seen in isolation, and the risk they pose can be reduced through foresight, careful planning, and active management. How a business charts its course through these risks will have a direct impact on its reputation with both customers and employees.”

In terms of economic concerns, for instance, those polled are more confident about their organisations’ prospects than the wider economy.

“Now is the time for businesses to double-down on their risk management and business continuity planning to prepare for a wide range of potential stresses and risks,” added Winslow.

“Business continuity plans should be regularly tested. And risk management strategies should – if not already – be at the centre of an organisation’s planning and strategy so that they can best prepare and protect themselves from a range of extreme and high-risk events.”

For the Aviva-commissioned report, YouGov interviewed 1,251 senior business leaders from small, mid-market, and corporate companies across the UK from a variety of industries.