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IT businesses do not see Brexit as a threat, new report suggests

New report from RSA finds that UK IT companies are not concerned about Brexit and not adequately protected against major economic events

Nearly 80% of IT companies do not see Brexit as a significant threat to their business, according to new data from commercial insurer RSA.

The report, entitled Future Impacts, assessed the effects of economic events such as Brexit on business growth, and the risk management strategies employed in the face those events

The research found that Brexit is not perceived as a risk by 78% of businesses in IT and computing, with 35% stating that leaving the EU would have no impact at all on their organisation, and – rather remarkably - 43% stating that it will have a positive effect on their business.

Yet, the top three business risks identified by UK SMEs were economic uncertainty (35%), increasing market competition (35%) and cash flow (31%). 

RSA’s report also highlighted the lack of protection that small and medium companies have in place when it came to emerging risks. Despite being the instigators of technological change, the research found that 82% of IT firms have not altered or increased their insurance coverage as a result of the shifting landscape. For example, only 12% of businesses have any form of financial protection against cyber crime.

“The technological landscape is changing at an unprecedented rate bringing businesses both new opportunities and new threats,” said Russell White, Schemes and Deals director at RSA. “Despite pushing these technological advancements, SMEs are also being left behind the curve when it comes to securing themselves against the risks presented by cyber development. It is interesting to learn that only 12 percent of businesses in the IT and computing sector have cyber cover, despite them understanding the landscape.”

Russell added: “The onus is not only on SMEs themselves to better manage their risks, but also on brokers and insurance providers to proactively raise awareness of the protection gap and help SMEs to better understand the risks they face, and what they can do to protect themselves against them. RSA has devised a number of recommendations demonstrating what insurers, brokers, government and SMEs themselves can do to subvert this trend and help strengthen UK businesses and their contribution to our economy.”

 

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