Technology, supply chain and regulation are the three top dangers for businesses, a new study has indicated.

Research from the ACE European Group found that rapid changes in the economic landscape are applying pressure to companies, along with the increasing role of technology and multinational expansion.

Some 43 per cent of businesses named technology risks as one of their greatest worries, including issues such as data loss and business interruption, while supply chain risk was the second most serious concern (31 per cent).

Respondents ranked unethical labour practices as their biggest supply chain danger, with 61 per cent admitting they cannot always support the ethical and trading standards of companies they use.

Andrew Kendrick, president of ACE European Group, said: “Our survey results show that European businesses are now facing a landscape of new, complex, risks that change at an astonishing rate, defying previous categorisations. In this new environment, piecemeal responses will not succeed.

“Effective action will require board-level commitment, an integrated approach, and the development of a clearly understood risk management culture across organisations.”

Mr Kendrick went on to say that the report indicates how risk managers regard insurance as a pivotal part of the solution, with risk managers warning that this will only remain if the sector spends more money on identifying and developing solutions around non-physical dangers.

Four out of five (82 per cent) claim insurance plays an important role in their management of technology risks, whereas 80 per cent of respondents expect insurance to be either very or fairly important in three years.

The study highlighted that the industry cannot be complacent, as 45 per cent believe the industry could boost its services relating to technology risks. Some 28 per cent of respondents said they wanted the sector to make progress relating to risk and supply chain risk (28 per cent).