Top 5 Risks UK Businesses Will Face in 2023: Insights from Tradesman Saver
Tradesman Saver, a leading insurance provider for tradespeople and small businesses, has identified the top five risks that UK businesses are likely to face in 2023. Based on insights from risk management experts across 94 countries and territories, these risks reflect the challenging environment that businesses will have to navigate in the aftermath of the pandemic and amid technological changes.
- Cyber incidents: Cyber incidents, such as IT outages, data breaches, and ransomware attacks, remain the top risk for UK businesses. With the ongoing conflict in Ukraine and geopolitical tensions worldwide, the likelihood of large-scale cyber-attacks is increasing. Small businesses are especially vulnerable to such incidents due to weaker security controls and limited resources to handle the aftermath.
- Business interruption: Business interruption, including supply chain disruptions, continues to be a significant risk for UK companies. Despite efforts to diversify business models and supply chains post-pandemic, disruptions persist. Global supply chain issues, such as semiconductor shortages, and the recent turmoil in Ukraine have put additional 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. Although the UK is currently in a recession, some experts predict a return to growth during the second half of the year as inflation and energy prices begin to stabilize.
- Energy crisis: The energy crisis has also impacted businesses, with rising energy prices due to post-pandemic economic recovery, supply chain disruptions, and delayed maintenance work. The crisis has 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, exacerbated by the Covid-19 pandemic and rising wage inflation, persists as a risk for UK businesses. Many countries, including the UK, face a reduced workforce and high demand for labor. The construction industry is among the hardest hit, with 75% of contractors experiencing recruitment issues.
Protect Your Business with Public Liability Insurance To help businesses mitigate these risks, Tradesman Saver provides tailored insurance solutions to protect against potential losses. Public liability insurance can provide financial protection in case of property damage or injury to third parties. Tradesman Saver’s public liability insurance can be tailored to meet the needs of different businesses. To learn more about how Tradesman Saver can support your business, visit their website at https://www.tradesmansaver.co.uk/public-liability-insurance/ or call their helpline for more information.
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