Small and medium-sized companies across the UK are most concerned about the impact of employee mental health and wellbeing, financial uncertainty as well as health and safety on their businesses over the next 12 months, according to Marsh.
According to Marsh’s UK Business Risk Report 2022, which features data obtained in May and June 2022 from over 1,700 UK businesses with revenues of up to £20 million, employee mental health and wellness were cited as a major risk by about 49 per cent of respondents, up from 30 per cent in 2021 when Covid-19-related hazards topped company risk registers.
While 36 per cent of the businesses surveyed still express concern about financial instability, demonstrating that balance sheet volatility still exists, Marsh reported a 6 per cent decline from 2021. Health and safety were cited as a top concern by one-third of respondents, or 33 per cent, up slightly from 32.6 per cent last year.
The top three developing risks—those deemed to be most concerning—reflect the overall state of the economy. Two-fifths of respondents, or 39 per cent, mentioned rising energy prices, a third, or 32 per cent, mentioned inflation, and 27 per cent said personnel shortages were an urgent problem. Particularly rising inflation can have a severe impact on businesses’ risk and insurance plans, underinsuring real estate and other valuable assets.
Marsh CEO Alistair Fraser says: “Small and medium-sized businesses across the UK, in every region and sector, are navigating a hugely diverse array of risks amidst a very challenging operating environment. Since the survey was conducted, UK inflation has reached a 40-year high, which will have a profound impact on how these firms operate in the near and longer-term. As new risks emerge and current risks continue to evolve, we urge businesses to review their current insurance arrangements and approach to risk management, to build even greater resilience into their people and operations.”