The Covid-19 pandemic saw a large-scale move to remote working which many businesses are still adopting 24 months on. Moving employees and equipment offsite introduces new access points for vulnerability, and the geographical spread of staff translates to thousands of routers and networks, increasing exposure across a company’s IT ecosystem. Cyber criminals have exploited these vulnerabilities, plus the increased reliance on video conferencing apps, for commercial gain through activities such as social engineering methods and phishing emails. Ransomware is currently one of the fastest growing global cyber security threats, rising by 93% in the first half of 2021
¹  . This is partly attributed to emergence of ransomware-as-a-service (Raas) where ransomware is sold for a relatively cheap price. As a result, 63% of UK executives report they plan to increase their cyber budgets over the next year.²

Read more from AGCS about ransomware and other cyber risk trends.

Climate change is the biggest climber from 2021 showing this to be prominent in the minds of many business leaders. The COP26 conference in Q4 2021 brought ‘loss and damage’ - the phrase used to describe the destruction being wrought by the climate crisis - under the spotlight and this will likely remain high on the agenda at the COP27 summit. Aside from the obvious environmental impact, climate change can stress local economies, threaten company business models and pose widespread disruption to organisations. A government report published in January 2022 has predicted that the cost of climate change to the UK could be at least 1% of GDP by 2045.³ 

For a third year, market developments remains fairly static in its rating. The UK market continues to experience volatility with inflation hitting its highest level for nearly 30 years⁴ and the cost of living rising, particularly food and energy prices.

Uncertainty surrounding the severity of the Omicron variant continues to impact negatively on gross domestic product (GDP) and also threatens employment in the retail and hospitality sectors. On 20 January, the government announced the lifting of a number of Covid restrictions, including those related to remote working. The effect on the economy is yet to be seen.

Dropping the most places in the list is the risk of pandemic outbreak. Nearly two years on, many organisations have adapted well to the pandemic, with measures including remote and flexible working or adjusting business models to comply with evolving government regulations. In many instances this has led to an acceleration in digitalisation and the adoption of new technologies. However the recent Omicron variant shows that the pandemic continues have an impact, and will likely do so for the near future.

Click here to read our BIBA Broker’s Guide to managing the after effects of Covid-19.

Remaining fairly static on our list, damage to reputation and brand value can stem from a number of sources. Businesses have come under particular scrutiny for how they’ve treated employees throughout the pandemic, with a focus on mental health and wellbeing. Research commissioned by Acas⁶ found that over a third of British employers have seen improvements to mental health support since the start of the pandemic. Firms are also evaluated on treating customers fairly, including vulnerable customers; research shows that 27.7m UK customers ⁷
present characteristics of vulnerability. In February, the Financial Conduct Authority (FCA) published its guidance and expectations of firms on the treatment of vulnerable customers. There’s also a strong focus on companies’ sustainability and ESG credentials, linked to concerns around climate change.