Business leaders in the South of England are navigating a risk landscape shaped by economic uncertainty, accelerating cyber threats, and growing pressure on people and compliance frameworks. According to our 2026 UK Business Risk Report, nearly half of leaders in the South – 48% – say their biggest concern is economic and financial risk. Within that category, inflation and economic instability are tied as the top risks, each cited by 29%, followed closely by recession risk at 28%.
This economic backdrop is not operating in isolation. Cyber risk is the second most pressing concern, highlighted by 43% of leaders, while 40% point to both people risk and compliance, legal and regulatory risk. Together, these findings suggest that business leaders in the South are facing a multi-layered risk environment: one where market volatility, digital exposure, workforce capability, and regulatory complexity all demand attention at the same time.
The good news is that many organisations are responding proactively. Businesses in the South of England are more likely than those elsewhere in the UK to have taken steps to strengthen their risk management capabilities. In particular, 63% of businesses in the South have reviewed employee training, indicating a strong recognition that risk resilience starts with people. This is especially important in areas such as cyber awareness, compliance behaviour, incident response, and decision-making under pressure.
That proactive stance is reflected in confidence levels as well. Seventy percent of business leaders in the South say they feel confident in their risk management frameworks, suggesting that many organisations believe they have the right structures in place to respond effectively.
But confidence should not lead to complacency. For leaders in the South, the priority should be to ensure risk frameworks are tested, not just documented. Practical steps include stress-testing financial scenarios, refreshing cyber defences, reviewing third-party exposures, and embedding regular training for employees at every level. It is also vital to connect risk management more directly with strategic planning, so that inflationary pressure, regulatory change, and workforce risks are considered alongside growth decisions.
In a year defined by uncertainty, resilience will belong to organisations that treat risk management as a continuous business discipline, not a periodic compliance exercise. For leaders in the South, the opportunity is clear: turn confidence into capability, and capability into competitive advantage.
What’s putting you at risk? Download the Marsh 2026 UK Business Risk Report and tackle your biggest risks today.
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