Organisations across the UK are getting better at responding to disruption – but the pressure to stay ahead of rapidly evolving threats continues to mount.

That’s the clear message from the 2025 Data Health Check, published today by business resilience specialist Databarracks.

Now in its 18th year, the survey of 500 UK IT decision-makers highlights shifting priorities in cybersecurity and continuity planning.

While confidence in recovery remains fragile, a growing number of firms are adopting more robust testing, cyber insurance, and modern backup strategies in response to rising threats.

What’s causing disruption and downtime?

For the third consecutive year, cyber-attacks were the most common cause of both IT downtime and data loss.

Seventy-one percent of organisations reported experiencing an attack in the past 12 months, with the human toll of these attacks also becoming clear – increased stress, heavier workloads, and lost productivity were the most frequently reported consequences, reinforcing the growing operational and psychological impact of persistent cyber threats.

This year’s most disruptive development – according to the report – is the rise of AI-enhanced cyber threats.

Deepfakes, spoofing, and machine-generated attacks are now seen as the greatest IT resilience challenge over the next five years. These threats have overtaken more traditional risks as the primary trigger for security reviews.

Yet the outlook isn’t entirely bleak. Despite clear concerns, 72% of organisations believe that AI will ultimately bring more benefit than risk to their security posture, especially in areas like threat detection, automation, and analysis.

Source: Databarracks

One area showing encouraging signs of progress is ransomware response. Just 17% of affected organisations reported paying a ransom—down significantly from previous years. The majority now recover using backup systems, especially air-gapped and immutable storage solutions that are harder for attackers to compromise.

Sectors such as banking and finance are leading the way in this space, demonstrating how backup-led recoveries are becoming central to modern incident response.

Another key trend is the growing reliance on cyber insurance. Coverage reached an all-time high of 73% this year, with two-thirds of insured organisations filing claims. In seven cases, payouts exceeded £100 million, reflecting the increasing financial scale of modern cyber incidents.

Testing is Now the Gold Standard

Organisations are increasingly embracing rigorous testing as the foundation of resilience. According to the report, 90% tested elements of their recovery capabilities in the past year—a marked increase from previous years. Testing is now widely seen as the most effective way to boost confidence in continuity planning and enhance preparedness against cyber attacks.

James Watts, managing director at Databarracks, noted that testing is starting to reveal critical vulnerabilities, not just confirm readiness. “Resilience isn’t standing still—but neither are the threats,” he said. “Recovery confidence is actually dipping slightly, suggesting that testing is uncovering gaps. That’s a good thing. Realistic testing leads to real improvement.”

Source: Databarracks

Integrated Resilience

The report also marks a broader shift in how organisations think about resilience. Chris Butler, resilience director at Databarracks, emphasised that resilience is no longer just an IT concern.

“AI-driven threats hit more than just systems—they hit reputation, communications and trust,” he said.

“That’s why organisations are increasingly integrating cyber, risk, continuity and crisis management into one coordinated approach.”

This integrated mindset is driving behaviour change: 75% of organisations have conducted security reviews in direct response to recent threats, suggesting a growing feedback loop between incident experience and strategic planning.

Recommended reading

• Arctic Wolf Threat Report: Ransomware As A Service On the Rise
• Are Cybersecurity Teams Safe from the AI Axe?
• Report: AI Agents Are Triggering Business Restructure

While large and medium-sized organisations are strengthening their resilience postures, the report warns that smaller businesses remain disproportionately exposed—particularly in planning and cyber preparedness. Addressing this gap is seen as a key challenge for 2025.

Despite the scale and complexity of current threats, the mood isn’t entirely pessimistic.

The majority of respondents to Databarracks’ surveys are investing in long-term strategies and believe that new technologies – AI included – will ultimately enhance, not hinder, resilience.

“There’s plenty to be optimistic about,” concluded Watts.

“But resilience isn’t a destination. It’s a continuous process of adapting, testing, and improving. That’s the key lesson from this year’s Data Health Check—and the ongoing challenge for every business.”