What percentage of UK businesses have quantified their supply chain disruption risk?

Only 12.4% of UK organizations have quantified their exposure to supply chain disruption, according to Aon's 2025 Global Risk Management Survey findings. This is concerning given that 30.8% have already suffered significant financial losses from supply chain disruption.

Why do converging risks pose a greater threat than individual disruptions?

The Aon report emphasizes that business interruption, cyber, and supply chain risks increasingly compound one another, deepening financial damage and extending recovery times in ways traditional risk frameworks are not designed to handle. Hiscox research confirms that cyber incidents are the risk most likely to trigger others, making multi-risk scenarios particularly dangerous.

What are the consequences of not quantifying disruption risk?

Without quantification, senior leaders cannot make informed investment decisions, structure appropriate insurance programs, or plan for prolonged disruption costs. This often results in underinsurance: clients carry limits based on guesswork rather than realistic loss scenarios, leaving organizations dangerously exposed when serious losses occur.

How can businesses improve their risk quantification practices?

Aon recommends using advanced analytics and scenario planning to quantify exposure, structured financial modeling rather than intuition-based assumptions, and realistic loss scenario modeling before policy renewal. With UK commercial rates falling, organizations can reinvest premium savings into better limits, longer indemnity periods, and extensions such as supplier and utilities cover.

What recent events demonstrate the spread of disruption beyond direct physical damage?

Storms Austen and Boelo left over 830,000 properties without power, causing some businesses to lose days of trading without suffering physical damage. Standard business interruption cover often does not reach such scenarios, highlighting coverage gaps that organizations must address.

Risk & Disruption

High Impact

UK Firms Failing to Quantify Disruption Risk: Aon Report

Nov 2, 2026

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The signal

A new Aon report reveals a critical vulnerability in UK business risk management: the vast majority of firms have not quantified their exposure to compounding disruption risks. While 27-31% of surveyed organizations have already suffered significant losses from business interruption and supply chain disruption, only 12-24% have formal risk management plans in place, and fewer than 16% have actually measured their exposure to these threats.

This quantification gap leaves senior leadership unable to make informed decisions about insurance limits, investment priorities, or recovery planning. The report highlights that even companies with some quantification often rely on intuition rather than structured financial modeling.

For supply chain professionals, this represents both a critical gap in organizational preparedness and an opportunity to drive data-driven resilience strategies during a period of falling commercial insurance rates.

How this affects:

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Frequently Asked Questions

What This Means for Your Supply Chain

Simulation Suggestion

this month

What if a major supplier goes offline for 3-4 weeks due to cyber attack?

Simulate the impact of a critical supplier becoming unavailable for 21-28 days due to a cyber security incident affecting production and distribution networks. Model cascading effects on downstream operations, safety stock depletion, and customer fulfillment disruption.

Run this scenario

Simulation Suggestion

this month

What if power loss affects your distribution network for 2-3 days?

Model the operational and financial impact of extended power outages similar to Storms Austen and Boelo affecting warehouse operations, cold chain integrity, and fulfillment capacity for 2-3 consecutive days without physical infrastructure damage.

Run this scenario

Simulation Suggestion

strategic

What if you had to rebuild after simultaneous supply chain and cyber disruption?

Stress test your organization's recovery capability assuming concurrent supply chain disruption and cyber incident, modeling combined downtime, recovery costs, inventory writeoff, and revenue loss over 30-60 days to validate business continuity plans.

Run this scenario

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