Operational and reputational risks are the top threats facing businesses in the UK this year, according to a survey of CEOs by KPMG.
This is a significant shift from 2016 when neither of those risks featured in the top ten challenges facing firms, which is thought to reflect a heightened scrutiny of businesses practices by government and the public.
The risks posed by emerging technology is the next biggest threat cited by CEOs, while seven out of ten have recruited new specialists to help mitigate political risk.
"Fuelled by global and domestic uncertainty and the increased threats to firms on multiple levels, the business landscape has become incredibly complex," KPMG chair-elect, Bill Michael, said.
"Yet, the CEOs who have ridden the storms facing their sectors over recent years have become more agile, constantly aware of the importance and the fragility of their brands, and doing their utmost to protect them."
The findings also show that 79% are spending more time scenario planning due to the uncertain geopolitical climate, while 80% have attended a course in the last 12 months to help them meet new challenges like cyber security.
However, 42% admitted they had no plans to invest in workforce training over the next three years, except to maintain current business needs, and just 10% listed the development of talent as a priority.
"Closing the book on new staff training while future growth is uncertain may seem sensible, but it risks throwing future opportunities away," Michael said.
As well as not investing in training, half of the CEOs surveyed said that they had made no investment in developing new products, services or alternative ways of doing business.
In addition, 60% of said they had not invested in emerging technology over the last 12 months and have no plans to do so in the next three years. "Companies are still resistant to open up their cheque books," Michael continued.
"The financial crisis was a chastening experience for many and has left some business leaders inherently risk averse and unwilling to invest in anything but the tried and tested products and technology.
"However, this cautious approach could see British businesses risk missing out on new opportunities, which will instead be seized by their international counterparts who are investing now."