British businesses need to develop practical ways to combat terrorism risk, according to a Lloyd’s report.

Lloyd’s partnered with the International Institute of Strategic Studies to produce the report, which details an improving awareness of the risk from Islamic terrorists but a knowledge shortfall in practical methods of countering the risk.

“The business community urgently needs to close the gap between growing awareness of the risk, and a lack of understanding of what it means in practice,” Lloyd’s Chairman Lord Levene said.

The report advises businesses to strengthen their existing defences against fire, theft and fraud to counter homegrown terrorist threats.

It says businesses cannot view the terrorists’ concentration on public transport targets with complacency.

“There is a relatively low probability of a direct terrorist strike against business interests or facilities, but businesses should not overlook the risk of indirect attack.”

Other ways to combat terrorism include improving information-gathering, cultivating a positive mindset towards security, monitoring and preparing for emerging risks such as chemical and biological warfare, and engaging with the Islamic community to counter radicalisation.