UK Firms Struggle to Quantify Cyber and Supply Chain Risks

• •Only 21.6% of UK firms have a formal risk management plan for business interruption.
• •27.3% of UK businesses reported significant financial losses due to business interruptions.
• •Aon suggests using advanced analytics to better quantify risk exposures.

Aon’s report reveals that UK businesses are inadequately prepared to manage converging risks from business interruption, cyber incidents, and supply chain disruptions. The report indicates that 27.3% of firms faced significant financial losses from business interruptions, while 30.8% suffered from supply chain issues, and 9.3% from cyber incidents. Despite these challenges, only a small percentage of organizations have formal risk management plans or have quantified their exposure to these risks. Aon emphasizes that without proper quantification, businesses cannot make informed decisions regarding investments and insurance coverage. The report also highlights that recent storms have exacerbated these risks, leaving many businesses without power and unable to trade. The findings suggest a significant opportunity for brokers to address the quantification gap and help clients improve their risk management strategies.