In this post we’ll look at some of the biggest business risks you might expect to face in 2025.
Whatever happens over the next 12 months, we can help you ensure that your business can remain resilient.
We have a team of experts on hand who can help you to understand the risks that you may face as a business. They can also advise on your insurance needs, so you can rest assured that you’ll be able to bounce back from almost anything. For more information, contact us on 020 8290 9080 or email business@anthonyjones.com.
Inflation Still Affecting Businesses in 2025
Inflation has surged in recent years, which has likely affected every business operating in every sector. The OECD forecast suggests that inflation will gradually fall throughout 2025. By Q5 2025, inflation could be as low as 3.1%, a significant fall from the 41 year high of 10.1% in Q4 2022.
But businesses will likely have to deal with the impact of surging inflation rates for some time yet. We’re likely looking at another year marked by increased borrowing costs, reduced customer spending power, and a rise in the costs of materials, services, and insurance policies.
If you’re worried about rising costs, working with an insurance broker can make a huge difference. A broker will take the time to understand the exact risks your business is facing before helping you to get exactly the cover you need at the best possible price. Read our full guide to how brokers can help you deal with rising costs during periods of economic uncertainty.
The Growing Threat of AI and Cyber Risks
Every business in every sector must now take cyber security risks very seriously indeed, and it feels like the risks grow with every passing year.
Certain agencies have warned of the growing threat of cyber criminals using artificial intelligence (AI) tools to target and attack businesses. Cyber criminals can use AI to craft phishing emails that look so convincing that even the most seasoned eye will have trouble detecting the fraud. AI can also help cyber criminals to automate certain processes, which can greatly increase the speed and scale of their attacks.
Read our full guide to AI and cyber security.
A dedicated cyber security policy has been a business essential for some years now. Cyber insurance is just as important. In fact, if you are aware of the risks of cybercrime, then you have a duty of care to take whatever steps necessary to protect your business, your employees, and your customers.
We can help you understand not only the potential cyber risks your business may face, but also how a specialist cyber insurance policy to help protect against these risks. For more information, call us on 0208 290 9080 or email us at cyber@anthonyjones.com.
Increasing Risk of Extreme Weather Events
Extreme weather events are on the increase. This means that businesses face an increased risk of damage caused by storms and floods. Does your business have a disaster recovery plan in place in the event of your premises being flooded?
Environmental Regulations and Changing Customer Demands
Forbes has identified the move to more sustainable business practices as one of the biggest business trends for 2025. It seems that the focus over the next 12 month will be on the development of “circular economies”, where businesses will look to reuse materials and resources wherever possible so as to minimise waste.
Any business that does not commit to sustainability may soon pay a heavy price, in terms of both reputational damage and potential fines for not complying with local and international environmental regulations. The data also shows that customers are increasingly assessing a business’s environmental credentials when making buying decisions.
It seems that the ESG framework (Environmental, Social, Governance) was not a fad. Customers genuinely seem to value businesses that prioritise doing things as sustainably as possible. Read our guide to developing and implementing an intelligent ESG policy.
Supply Chain Disruptions
KPMG has identified a number of factors that could disrupt global supply chains, including:
- Trade tariffs imposed by the incoming US government.
- The ongoing crisis in the Middle East and Ukraine.
- A slowdown in the growth of the Chinese economy.
- Uncertainty and conflict over the supply of certain critical minerals.
- El Nino and other extreme weather events.
These threats will affect different sectors in different ways. But all businesses should prepare for rising prices, significant delays, and a general air of uncertainty.
One way to prepare would be through ensuring you have adequate business interruption insurance in place. Talk to your insurer about the sort of disruptions you’re covered for. You might be covered for fire and flood, for example, but are you covered for severe delays in production caused by supply chain disruptions?
Be sure to read our full guide to avoiding underinsurance in your business interruption insurance policy.
Whatever Happens in 2025, We’ll Be Here For You
It seems that 2025 may be a tough year for many businesses. We’re committed to helping you manage the risks you’re facing, so you can focus on thriving.
We can help you get bespoke business insurance cover to help you manage the unique risks you might face in 2025, and beyond. On top of this, our tailored risk management support can help you stay resilient, while helping you save on the cost of cover.
For a friendly chat and a free quote, call us on 0208 290 9080, or email business@anthonyjones.com.
