FEATURE
Cyber advice- Ian Miller, Stockton branch client director for insurance broker Gallagher. PICTURE: CHRIS BOOTH
Facing the future
What Gallagher’ s Business Risk Index tells us about challenges in the North-East
Rising costs, growing competition and escalating digital threats are creating a challenging environment for businesses across the UK. According to Gallagher’ s latest Business Risk Index research, five concerns are dominating boardroom discussions nationwide – and for organisations here in the North-East, these pressures are being felt just as strongly.
The top five risks identified by 1,000 UK business leaders are the cost-of-living, the high cost of materials, the high cost of salaries, cybercrime and competition within the sector.
None of these will come as a shock to businesses- but seeing them backed by data reinforces the scale and persistence of these challenges. They underline the ongoing squeeze many organisations face, especially in sectors such as manufacturing, construction and professional services.
“ Many of the businesses we support are feeling stretched – dealing with rising costs and a challenging economic climate, all while trying to stay competitive,” says Ian Miller, client director of the global insurance brokers’ Stockton branch.“ It’ s a constant balancing act.”
A national picture with a local echo While Gallagher’ s research reflects national sentiment, it’ s clearly mirrored closer to home. Businesses across Teesside and the wider North-East are grappling with the same risks- often with added complexity due to regional economic disparities and post-industrial pressures.
Take the cost of materials, for instance. Supply chain delays and volatile pricing continue to disrupt local manufacturers. Meanwhile, small retail and hospitality businesses are being squeezed by rising wage demands— without the footfall or margins to match.
And when it comes to competition, it’ s no longer just the shop or service next door. For many SMEs, the fight is with national chains and online disruptors, all chasing the same customer base.
Spotlight on cybercrime One risk in particular stands out: cybercrime. Once considered just an IT concern, it’ s now firmly on the boardroom agenda— and with good reason. From phishing and ransomware to data breaches, digital threats are becoming more frequent, sophisticated and damaging.
“ Many businesses still think cybercrime won’ t happen to them— until it does,” says Ian.“ We’ ve seen first-hand the impact a cyber incident can have on a company’ s operations, reputation and even its survival.”
And firms in the North-East are no exception. A study by Vodafone Business revealed that businesses in the region are losing £ 110m annually to cyber-hackers because they don’ t have the proper security measures in place. The reality is clear: no business is too small to be a target anymore.
Supporting local businesses through cyber awareness To help raise awareness and equip businesses with the tools they need to stay protected, this Cybersecurity Awareness Month, Gallagher is hosting a webinar where a panel of specialists will discuss the latest cyber threat trends, common vulnerabilities and practical measures you can take to build stronger cyber defences.
The discussion will also feature a real-life case study, walking through a cyber-attack from multiple perspectives: cyber risk management, cyber insurance, legal obligations and brand reputation recovery, giving attendees a clear picture of not only how an incident unfolds, but also the steps that can make the difference between swift recovery and long-term damage.
Readers of Tees Business can register for the webinar, which is taking place on Thursday October 9 2025 at 10am, by scanning the QR code below:
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