Posted: 6 February 2026
The top risks for UK businesses in 2026
The Allianz Risk Barometer is an annual global report identifying the most important corporate concerns for the year ahead. It’s based on the insight of over 3,300 risk management experts from more 97 countries and territories.
The UK's top 10 risks for businesses in 2026
(e.g. cyber crime, IT network and service disruptions, malware/ransomware, data breaches, fines and penalties)
(e.g. implementation challenges, liability exposures, misinformation and/or disinformation).
#3 Business interruption
(inc. supply chain disruption)
#3 Changes in regulation and legislation
(e.g. tariffs, new directives, sustainability requirements)
#5 Political risks and violence
(e.g. war, political instability, terrorism, polarization, coupe d'état, civil unrest, strikes, riots, looting)
#6 Climate change
(e.g. physical, operational and financial risks as a result of extreme weather)
#6
Macro-economic developments
(e.g. inflation, deflation, monetary policies, austerity programmes)
#8
Market developments
(e.g. intensified competition/new entrants, M&A, market stagnation, market fluctuation)
#9
Talent or labour issues
#10
Natural catastrophes
(e.g. storm, flood, earthquake, wildfire)
The Allianz Risk Barometer 2026 shows that cyber incidents, artificial intelligence (AI) and business interruption remain the most significant risks facing UK organisations. ¹ As digital reliance grows and regulations evolve, businesses and government departments are working together to build stronger resilience across the UK economy.
1. Cyber incidents (#1 in 2026)
e.g. cyber crime, IT network and service disruptions, malware/ransomware, data breaches, fines, and penalties.
Cyber incidents remain the top global business concern for the fifth year running.¹ Globally, they reached their highest ever score in the 2026 Risk Barometer and remain the number one risk across every region and business size.
Rising exposure in the UK
The UK faces the same upward trajectory. The National Cyber Security Centre (NCSC) responded to 204 significant or highly significant cyber incidents in the 12 months leading to September 2025².
Recent high profile attacks, including those on Marks and Spencer, the Co op and the production halting malware attack on Jaguar Land Rover (JLR), underline how cyber events can escalate into operational, financial and reputational crises².
Research commissioned by the Department for Science, Innovation and Technology (DSIT) shows that the average cost of a significant cyber attack is now almost £195,000, which equates to an estimated £14.7 billion annual impact across the UK economy².
The Cyber Security Breaches Survey 2025 shows a small year on year reduction in identified breaches, however it still confirms that 43% of businesses experienced an incident³.
Strengthening the UK’s cyber defences
The Cyber Security and Resilience Bill introduced in November 2025 modernises the UK’s cyber regulatory regime. It widens the scope of regulated entities and sets out new obligations, including reporting harmful cyber breaches within 24 hours, with a detailed report required within 72 hours⁴. For policyholders, the Bill is expected to increase focus on demonstrable compliance and enhanced governance⁴.
To support organisations, the government launched the Government Cyber Action Plan (GCAP) in January 2026⁵. GCAP strengthens incident coordination, sets clear leadership responsibilities and expands secure by design services. The programme also invests in national capability through the Government Cyber Security Profession⁶.
The Cyber Growth Action Plan 2025 highlights the UK’s fast growing cyber sector, contributing £13.2 billion annually and employing around 67,300 people⁵.
Rising third party dependency risk
The Allianz Risk Barometer notes growing concern about digital supply chains¹. More than three quarters of organisations rely on cloud services across most business operations, however just three global providers control over 60% of cloud infrastructure, which increases systemic exposure.
Cyber incidents remain the leading corporate risk in the UK and worldwide¹ and this is prompting organisations and regulators to prioritise protection, resilience and strengthened supply chain controls.
2. Artificial Intelligence (#5 in 2025)
(e.g. implementation challenges, liability exposures, misinformation or disinformation)
AI is now the second highest business risk in the UK, cited by more than half of respondents, which is more than double the 2025 figure¹. Businesses are increasingly mindful of risks linked to:
- Bias and data quality
- System reliability
- Intellectual property challenges
- Ethical design and responsible use
- Compliance with evolving regulations such as the EU AI Act and forthcoming UK assurance standards
Ludovic Subran, Allianz’s Chief Economist, highlights that AI is now viewed as both a driver of opportunity and a complex source of operational and reputational risk¹.
Investment rising, but capability gaps remain
Many UK organisations plan to increase their AI investment by over 30% in 2026¹.
However, capability remains a challenge. Red Hat research shows that:
- 90% of organisations struggle to scale AI pilot projects
- 62% face critical AI related skills shortages⁷
To address this, organisations are investing in clearer governance, stronger oversight and wider workforce upskilling.
3. Business Interruption (#3 in 2025)
(including supply chain disruption)
Business interruption remains a top three concern for UK companies¹. Increasingly, disruption stems from digital failures, including cyber attacks and AI system outages.
The Jaguar Land Rover ransomware attack halted production, disrupted dealer networks and affected more than 5,000 suppliers, resulting in an estimated £2.1 billion in losses².The incident shows how quickly digital shocks can spread across supply chains and essential services.
According to the Allianz Risk Barometer 2026, only 3% of organisations consider their supply chains “very resilient”, ¹ which reinforces the need for proactive continuity planning. Many businesses are now adopting:
- Real time digital risk and supplier tracking
- Scenario based resilience testing
- Supplier diversification
- Updated business continuity plans aligned with national guidance
Building confidence through integrated resilience
Cyber incidents, AI risk and business interruption now form a connected and fast evolving landscape. Government action, including GCAP and the Cyber Security and Resilience Bill, is helping strengthen national cyber resilience. At the same time, organisations are investing in stronger cyber controls, clearer AI governance and more resilient supply chains.
These developments signal a shift toward integrated and proactive risk management, which is essential for supporting the UK’s digital economy and helping organisations move forward with confidence.
Sources
1. Allianz Risk Barometer 2026
3. Cyber Security Breaches Survey 2025 (GOV.UK)
4. Cyber Security and Resilience Bill – Policyholder Implications (Reed Smith)
5. Government Cyber Action Plan (GOV.UK) Independent research on the economic impact of cyber attacks on the UK - GOV.UK
7. Red Hat UK AI Adoption Research Red Hat Survey: UK Organizations Ready for Widespread AI Adoption, but Skills Gaps, High Costs and 'Shadow AI' Threaten Ambition
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