ADVICE
Risk management takes centre stage
Lee Elgie ( pictured ), managing director of the Teesside office of national insurance broker Gallagher , previews the year ahead …
Financial pressures continued to shape the risk landscape in 2024 and are expected to persist this year , as inflation , interest rates and geopolitical uncertainties weigh on the local economy .
Recently , R3 - the UK ’ s insolvency and restructuring trade body - warned that North-East businesses may face “ tough decisions about their future ”, with overdue invoices hitting a two-year high in the region .
However , adopting a forward-thinking approach to risk management - one that sees risks as opportunities rather than just threats - could be the key for businesses striving for long-term success in 2025 .
Risk management continues to rise up the agenda The threat landscape of the past five years has seen more attention of risk management at a senior boardroom level . Locally , risk and insurance managers are playing a more strategic role as companies invest more in loss prevention tools and frameworks .
By gaining deeper insight into risks - both internal and external - businesses can better navigate today ’ s complex trading environment and seize emerging opportunities . With disruptions becoming more frequent , severe and unpredictable , more firms are refining their business continuity strategies , reflecting a broader shift toward proactive risk preparedness .
Building safety The long-term impact of the Grenfell review continues to unfold , bringing widespread changes to the built environment . Prime minister Keir Starmer has pledged to usher in a “ generational shift ” in the safety and quality of housing , with regulatory changes set to impose new
Fire safety will be a major concern in the upcoming years with people coming to understand the significant effects of the Grenfell review .
responsibilities on businesses . Fire safety , in particular , will remain a pressing concern as companies adapt to evolving compliance demands .
Regulatory shifts The regulatory landscape in 2025 will require businesses to go beyond mere compliance and embrace a culture of safety and ethical responsibility . With enhanced workplace regulations covering areas such as harassment prevention and equality standards , businesses must integrate these principles into their core operations . True compliance is no longer about ticking boxes — it ’ s about fostering a culture where ethical business practices are the norm .
AI-related risks as cyber threats remain The rise in ransomware attacks and data breaches continues to pose significant threats to business operations and evaluating and strengthening supply chain security will remain critical from a cyberthreats perspective , as dependencies on third-party providers continues to grow . Digital transformation is meanwhile bringing new and emerging risks to the forefront . Risk managers are taking on an integral role as AI is further embedded into the workplace . Among the key risks associated with the technology include failure to invest in AI tools , mismanagement and over-reliance without proper verification .
Strategic approach needed for long-term growth For the remainder of 2025 , local businesses should focus on diversifying revenue streams and building long-term resilience against both anticipated and unforeseen challenges .
Viewing risk management as a continuous and evolving process can help companies protect against shortterm disruptions while also laying the groundwork for sustained growth . This ensures that businesses remain agile and competitive and able to adapt to changing circumstances .
There is a strong case for viewing risks as opportunities for strategic advantage and this shift in perspective allows businesses to position themselves for growth , even amid adversity . It ’ s important to remember that with every risk comes an opportunity , and that ’ s what businesses should be concentrating on .
“ We ' ve seen approximately a 50 % increase in clients ’ focus on business continuity planning . The resilience aspect of organisations has significantly improved this year .”
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