In line with new analysis by Marsh, an insurance coverage dealer and danger advisor, corporations throughout the UK are most involved in regards to the impression of economic uncertainty (34 %), worker well being and wellbeing (31 %) and provide chain disruption (23 %) on their companies over the subsequent 12 months. The findings come from Marsh’s UK Enterprise Threat Report 2023 [registration], which options information obtained in Could and June 2023 from over 2,100 UK companies with turnover of between £100,000 and £500 million + per yr. Now in its third yr, the report explores how circumstances during the last 12 months have impacted the enterprise danger urge for food and strategy to danger administration amongst UK corporations, and identifies their priorities for the yr forward.
In line with the analysis, monetary uncertainty is the highest danger dealing with UK companies on account of rising inflation, power costs, and uncooked materials prices. Nonetheless, solely 34 % of respondents see it as a big concern, the bottom share within the final three years (43 % in 2021, 37 % in 2022). This is because of companies strengthening their monetary resilience in the course of the pandemic and a return to extra acquainted monetary dangers, post-Covid.
Regardless of working in a difficult buying and selling surroundings, many UK companies are optimistic about their monetary prospects for the yr forward, with 50 % anticipating a rise in productiveness, 47 % anticipating a rise in turnover, and 46 % anticipating a rise in profitability.
Different findings embrace:
- Individuals-related dangers are a prime concern, with worker psychological well being and wellbeing (31 %), expertise retention, attraction and succession planning (22 %), and well being and security of the general public and staff (21 %) taking second, fourth and fifth place respectively.
- Over the past 12 months, solely 47 % UK companies addressed well being and security insurance policies and procedures, and worker psychological well being and wellbeing choices (51 %). Trying forward nevertheless, these are decided to be the highest two ‘individuals’ priorities. Reviewing office tradition and management can also be a cited as a spotlight space for one in three companies within the yr forward.
- Environmental, social and governance (ESG) requirements had been recognized as a precedence for almost all of UK companies, with simply over half (55 %) of respondents understanding ESG necessities and half (50 %) incorporating ESG into enterprise technique. Some are additionally already passing these expectations down by their provide chains with 48 % of companies having reviewed their suppliers’ ESG methods during the last three years.
- Whereas reporting on ESG efficiency is already necessary for giant UK companies, the overwhelming majority of respondents (76 %) haven’t but embedded ESG into their enterprise methods.
