Cyber attack named "most dangerous risk" for UK businesses

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Last year fiscal crisis was the number one concern

The threat of a cyber attack has been identified as the “most dangerous” risk by UK business leaders.

This is according to a new study “Regional Risks for Doing Business 2018” by the World Economic Forum (WEF) which looked at perspectives on the impact of risk regionally in the private sector.

Cyber attacks were also perceived as the main trading risk for 19 other countries including Germany, Switzerland, Singapore, Japan and the US.

Last year, fiscal crisis was a top concern and cyber risk held third position.

	Top risks 2018	Top risks 2017
1.	Cyber attacks	Fiscal crisis
2.	Failure of national governance	Asset bubble
3.	Asset bubble	Cyber attacks
4.	Fiscal crisis	Failure of financial mechanisms or institution
Joint 5.	Failure of mechanical mechanisms or institution Terrorist attacks Failure of urban planning	Terrorist attack

The study saw 12,500 executives worldwide select what they believed to be of the five global risks of the “most concern” for business in their country over the next decade, out of a list of 30 including illicit trade, extreme weather events and terrorist attacks.

Cyber risk

John Scott, head of sustainability risk at Zurich added that it’s clear that UK business leaders have a “strong understanding” of the technological, social, economic risks with cyber risks now being their number one concern.

“It’s vital that businesses have clear risk management strategies in place to help them withstand any unforeseen consequences and build greater resilience within their business,” he said.

“We operate in a global system facing a huge degree of uncertainty and unprecedented period of change.”

He said that today’s macro-economic and geopolitical environment is “more complicated than ever.”

Scott warned that UK business leaders may be underestimating the environmental risks.

The study was in partnership with Zurich and Marsh.

Awake at night

Chris Lay, chief executive for UK and Ireland at Marsh explained: “While Brexit and political uncertainty continue to dominate UK news agendas, it’s cyber risk that’s keeping UK business leaders awake at night, topping the UK rankings for the second time in three years.

“Geopolitical risks are also a cause of major concern. Continuing uncertainty about the economic impact of Brexit – and the prospect of Britain leaving the EU with ‘no deal’ – mean that UK boards are increasingly preoccupied with heightened financial and political threats to their businesses.”

But he said that a number of measures, such as a clear risk management strategy could build greater operational resilience helping firms ensure that their people, assets and reputations are well-protected.