Cybersecurity and Geopolitical Volatility Top UK Business Concerns
Cybersecurity and data breaches have emerged as the most pressing concerns for businesses in the UK, according to Aon's recent survey. Meanwhile, geopolitical volatility has surged into the top ten global business concerns, highlighting a shift in corporate risk perceptions.
Joe Peiser, CEO of Aon's commercial risk division, revealed that only 13% of respondents have quantified their cyber exposure, despite cybersecurity's top ranking. This knowledge gap leaves businesses vulnerable to financial and reputational losses, as seen in high-profile cases involving M&S, the Co-op, Harrods, Jaguar, and major airports.
Brent Rieth, Aon's global cyber leader, stresses the importance of embedding cybersecurity into board-level strategy and investing in quantification to bolster resilience. However, a lack of understanding about cyber insurance coverage hinders businesses from mitigating these risks effectively.
Geopolitical volatility has risen dramatically, from the 22nd spot in 2023 to the 10th spot in the latest survey, reflecting increased uncertainty and instability in global markets. Businesses have suffered losses in international projects and investments due to geopolitical and economic risks, driving demand for political risk insurance. By 2028, geopolitical volatility is expected to rank fifth among future risks.
As cybersecurity and geopolitical volatility climb the ranks of global business concerns, companies must prioritize understanding and mitigating these risks. Quantifying cyber exposure, investing in cyber insurance, and embedding risk management into strategic decision-making will be crucial for businesses to navigate the complex landscape ahead.
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