If you’ve ever felt that running a Small or Medium Enterprise (SME) is like pushing water uphill, especially in the current business climate, a major new report on risk might just confirm that view — and give you a fresh lens for spotting where trouble often starts.
Our review of insurance giant Allianz’s Trade 2026 UK Risk Barometer isn’t doom-mongering; it echoes with some up-to-date research what we’ve been preaching for some time – recognising risks early, adapting fast and giving your business the breathing room it needs to thrive rather than survive.
Here are the key points:
- Cyber and AI — Not Just buzzwords, but real business risks
Cybersecurity threats top the barometer list yet again, not only globally but right here in the UK. Ransomware, data breaches and tech outages are no longer ‘things that happen to big corporates’ — they can cripple a small enterprise overnight. In fact, concern about cyber risks is growing faster among UK businesses compared with many others.
Investing in even basic cyber protections, staff training and incident response planning isn’t optional, it’s essential. Having a solid plan could be the difference between a minor disruption and a solvency crisis.
Alongside cyber sits AI risk, a newcomer that’s climbed sharply in prominence. While AI brings productivity gains, it also introduces operational, legal and reputational challenges if mishandled. Think about governance and compliance before you dive headfirst.
- Supply chain stress — domino effects happen
Supply chains are another standout theme. Very few UK businesses think their chains are very resilient, and interconnected shocks, such as geopolitical tensions and cyber incidents, are forcing many firms to rethink their suppliers and customers. Why is this relevant to insolvency? Because one supplier’s trouble often becomes your trouble if you aren’t watching your credit exposure closely. A collapse upstream can quickly turn into cash-flow pain downstream.
- Insolvency is Climbing — but so is awareness
A sobering reality: global business insolvencies are expected to hit record highs in 2026, and the UK is not immune. Markets are experiencing weak growth and tight financing conditions, and the domino effect risk above is real: a large failure can trigger distress across entire value chains. Thinking constructively, if you know this is coming, you can act on it. Early detection of financial stress is a powerful tool. Regularly review your debts and receivables, talk openly with lenders and suppliers, and don’t wait until you’re on the edge to seek help.
- Practical steps to strengthen your resilience
So what can your SME do right now, even if you’re already feeling strained?
- Stress-test your finances monthly — look at cash flow, working capital and worst-case scenarios.
- Build credit visibility with partners — know who you’re exposed to, and cap concentrations.
- Strengthen governance around tech adoption — especially if you’re integrating AI tools.
- Invest in affordable cyber protection — even basic measures pay off if they prevent a breach.
- It starts with awareness — then action
New research, barometers, indices and the like often provide a good window on reality; a finger on the pulse of what keeps businesses up at night. But they’re also reminders of what we already know but don’t necessarily want to face. If the risks are visible, the solutions are too. If you’re a business owner who wants to stay in control of your company’s future, the best time to act was yesterday — the next best time is today.
As ever, the Buchler Phillips approach to business challenges is ‘workout, not bail out’. Don’t hesitate to get in touch for an exploratory chat if your business needs help. Addressing the cracks now will, in many cases, avoid the need to start again.
Written by the analysts’ team at Buchler Phillips, an independent boutique firm, with an impeccable Mayfair London heritage, specialising in corporate recovery, turnaround, restructuring and insolvency.