UK businesses ‘are risk averse’

Companies in Britain may miss out on lucrative opportunities available to them due to unwillingness to take risks, one insurance provider has revealed.

RSA has released a study in conjunction with the Future Foundation that found UK businesses are reluctant to make decisions that could jeopardise their organisations, although many believe opportunities exist during the recession.

According to the report, 58 per cent of firms preferred to be cautious, despite 63 per cent confirming growth was possible during the economic downturn.

UK underwriting and strategic claims director at RSA Neil Lightbown said: “These reactions are understandable given the widespread perception that extensive risk-taking helped bring on the credit crunch and the recession.”

However, companies ran the risk of being overly careful and acceptable risk was a fundamental part of getting the economy back on track, he added.

This follows recent news that many enterprises are facing uncertain circumstances due to debts owed by suppliers and consumers.

By Francis Finch