UK businesses are contending with a rising number of increasingly complex risks, according to YouGov research commissioned by global investigations firm Nardello & Co.
The survey of 250 UK business leaders reveals a landscape shaped not by a single dominant threat but by a range of problems leaders must manage simultaneously.
Key findings show:
- Over half of UK business leaders (58%) rank cyber breaches as a top risk, with others more wary of regulatory compliance, financial crime, data privacy, or reputation management.
- Reputational concerns drive behavioral change, with 20% of leaders having made decisions to safeguard reputations, even if they were not the best business decisions.
- Despite escalating risks, data shows some businesses could be unprepared, with only 59% confirming they offer regular compliance training and only 44% confirming they carry out pre-hire screening.
Cybersecurity breaches are widespread, but three-quarters of business leaders doubt their ability to manage them
Nearly 6 in 10 leaders identify cyber breaches as one of their most significant areas of concern, and 2 in 10 businesses have experienced a cybersecurity breach in the last two years.
Commenting on the results, Joseph Pochron, Managing Director, Digital Investigations & Cyber Risk, said: “These statistics are not surprising, given the complexity of cyber incidents. With that said, the implementation and anticipated enforcement in 2026 of the UK Cyber Security and Resilience Bill – which expands the definition of critical infrastructure to include Managed Service Providers and data centres, while also reducing to 24 hours mandatory reporting times for certain information – will force organizations to adopt risk-based cyber security measures.”
Compliance concerns, including changing industry regulations and complex enforcement actions like sanctions, are ranked highly, with 37% of respondents citing them as a top worry. Additionally, 30% flag financial crime, including fraud, bribery, corruption, and embezzlement, as a major threat.
Reacting to the findings, Paul Nash, Managing Director, Financial Investigations & Forensic Accounting, said: “Historically, the US Government has been seen as the ‘global policeman,’ using the Foreign Corrupt Practices Act and related laws to investigate and prosecute financial crime. Yet this has changed. After a pause, the US Government has resumed FCPA enforcement, prioritising investigations of foreign bribery linked to cartels and transnational criminal organizations. At the same time, enforcement outside of the US is ramping up. For example, the UK’s Serious Fraud Office has new legal powers in the form of the ‘Failure to Prevent Fraud’ offense that came into force in September 2025. And, in March 2025 the SFO, France’s Parquet National Financier and Switzerland’s Office of the Attorney General announced the formation of a joint anti-corruption enforcement taskforce. This evolving global enforcement environment, coupled with increasingly complex fraud schemes, requires international companies to remain vigilant while managing the risk of fraud, bribery, corruption, money laundering, and other financial misconduct.”
Reputation concerns driving behavioral change
A quarter of leaders (26%) rank reputational damage as one of their top three concerns. Among them, 42% worry about the reputational impact of a data breach, 28% worry about the spread of misinformation online, and 24% worry about negative media coverage. 18% express concerns about managing wrongful allegations from employees.
The data reveals these concerns influence behaviour, with 20% of leaders admitting to attempting to ameliorate reputational risk by making “safer” decisions; decisions that were not necessarily in the best interests of their companies.
To avoid their remarks being taken out of context, 57% of leaders are now more cautious when speaking. Nearly half (42%) avoid social media engagement for fear of reputational risk and nearly 1 in 10 (7%) avoid meeting with junior colleagues due to the increasing fear of false allegations.
These fears are grounded in reality: 16% of businesses have faced false allegations in the past year (e.g. false claims of misconduct, harassment, or unethical behaviour).
Reflecting on the role that technology could play in reputational risk, Alan Kennedy, Managing Director, said: “Further developments in AI will only add to the complexity in challenging false narratives. AI provides bot farms with ever more convincing content, from text to video, allowing hostile actors to spread mis- and disinformation with ever greater ease. Further, ‘grooming’ of large language models – e.g., feeding false information into Chat GPT or other similar platforms – provides another means for hostile actors to further their black PR strategies. As we head into 2026, this growing complexity will continue to add a new layer of challenge for businesses.”
Broad geographic spread of perceived risk
Africa is cited by 26% of respondents as the region where their organizations face the greatest operational risk exposure, followed closely by the Middle East, at 24%, and Asia, at 22%.
Nikita Vaidya, Managing Director & Head of MENA, commented: “While Africa has long been perceived as high on the global risk index, largely due to bribery and corruption concerns, significant international investment has driven governments and businesses toward greater accountability. This progress must be supported by strong due diligence, monitoring of fund utilization, and continuous compliance training for local partners. This applies equally to the Middle East, which is no longer simply an ‘emerging market.’ Regulatory frameworks, which have become increasingly sophisticated to align with global standards, have fostered transparency and a growing commitment to risk management and enforcement.”
Failing to prepare
Despite a growing global appreciation of risk, the report suggests uneven preparedness across UK businesses.
- Only 44% confirmed they carry out pre-hire screening.
- Only 48% confirmed they have an anonymous whistleblowing channel in place.
- Only 50% confirmed they maintain a formal ethics programme.
- Only 59% confirmed they provide regular training on misconduct and compliance.
Commenting on the results, Chris Morgan Jones, Regional Managing Director of EMEA, said: “Despite organizations facing an increasingly sophisticated array of risks, the data highlight a degree of complacency that could well be existential for a business. Preparation, planning, and careful attention to specific risks can diminish the impact of any crisis and frequently prevent one. Because clients call them when things go wrong, corporate investigators have unique insight into the steps a responsible business can take to protect itself from the worst happening.”
A full analysis of the data will be available in Nardello & Co.’s The Market Outlook report, which will launch in Q1 2026.
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Notes on data
All figures, unless otherwise stated, are from YouGov Plc. The total sample size was 250 UK business leaders, including owners/proprietors, partners, chairpersons, chief executives, managing directors, non-executive directors, other board-level managers/directors, and senior managers or directors, at UK businesses with a minimum turnover of £250 million. Fieldwork was undertaken in 2025. The survey was carried out online. The figures have been weighted and are representative of all GB adults (aged 18+).
About Nardello & Co.
Ranked as the pre-eminent US investigative firm by Chambers & Partners and named by Global Investigations Review as the 2024 Investigations Consultancy of the Year, Nardello & Co. is a global investigations firm whose experienced professionals handle a broad range of matters including civil and white collar criminal litigation and arbitration support, due diligence, anti-corruption & fraud investigations, asset tracing, activist defense, political risk and strategic intelligence, digital investigations and cyber defense, monitorships and independent investigations, and compliance consulting.
For further information or to speak to Nardello & Co., please contact:
Elizabeth Anscombe: eanscombe@nardelloandco.com
