ADVICE
Protection – Lee Elgie says cyber resilience is no longer a technical conversation but is now a business continuity requirement.
PICTURE: CHRIS BOOTH
Why 2026 is the year risk becomes opportunity
Be bold, informed and proactive
Lee Elgie( pictured), managing director of Gallagher’ s Stockton-on-Tees branch, shares his perspective on why this year marks a turning point for North-East businesses.
Now that we are firmly into 2026, one trend is becoming unmistakable: businesses are beginning to treat risk not just as something to defend against, but as a lever for growth. After years of instability— from cyber disruption to political turbulence— leaders are recognising that resilience is no longer a static plan on the shelf, but an active strategy that can unlock competitive advantage.
This shift is particularly important for businesses across the North-East. With deep strengths in manufacturing, logistics, engineering and a rapidly growing digital sector, the region sits at the intersection of many of the risks— and opportunities— shaping the UK economy in 2026.
Cyber threats are accelerating— and businesses are increasingly exposed Cybercriminals are becoming more sophisticated, using AI to mimic voices, craft convincing phishing messages and bypass traditional human checks. Even the most vigilant teams are being deceived as criminals leverage realistic scams, SMS-based fraud and targeted attacks on senior leaders.
For North-East firms embedded in larger supply chains, the stakes are rising. Cyberattacks on one organisation— whether a national retailer or a global manufacturer— increasingly ripple out to affect suppliers, logistics partners and distributors across the chain. Many businesses faced losses last year not because they were attacked, but because
76 | Tees Business a major brand they supplied was. Priority actions for 2026 include: > Auditing supplier cyber resilience, not just internal systems. > Tightening access controls, adopting
“ least privilege” as standard. > Regular scenario testing to ensure recovery plans reflect real-world pressures. Cyber resilience is no longer a technical conversation— it’ s a business continuity requirement.
Geopolitics is reaching the shop floor The UK is experiencing higher levels of civil unrest, misinformation and hybrid cyber-physical threats. While these issues appear national in scale, they carry real implications for regional business. In 2025, over one in four UK businesses were impacted by civil unrest, with nearly half forced to close their premises during periods of disruption.
For the North-East— home to energy infrastructure, logistics hubs and large industrial estates— supply chain interruption remains one of the biggest vulnerabilities. Diversifying suppliers, strengthening local partnerships and reviewing logistics routes will be essential steps in 2026.
A new era of accountability for directors Regulators are increasing scrutiny of how businesses govern emerging risks— from ESG reporting to AI oversight and supply chain ethics. The Economic Crime and Corporate Transparency Act is tightening expectations around transparency and accuracy, placing greater accountability on directors.
The upside? D & O insurance remains competitively priced, with opportunities for organisations to secure broader cover and multi-year stability while market conditions allow.
People are the differentiator Despite rapid technological change, people remain the heart of resilience. Employees across the UK are experiencing change fatigue, but they’ re also looking for clarity, purpose and leaders who communicate in simple, storydriven ways. This is an area where North-East businesses often excel, with tightknit teams and strong cultural cohesion.
Meanwhile, AI is reshaping roles rather than replacing them. Businesses that give employees confidence with new tools— and the freedom to adapt— will outperform those that see technology purely as a costsaving measure.
Turning 2026 into a year of opportunity Uncertainty will remain a theme this year, but so will momentum. With market conditions, advancing technology and clearer regulatory expectations, firms have a real chance to strengthen resilience and unlock growth.
For North-East businesses, the message is simple: 2026 is a year to be bold, informed and proactive— because risk, managed well, can be your greatest competitive advantage.