Cyber incidents, including data breaches, ransomware attacks, and IT disruptions like the CrowdStrike incident, top the Allianz Risk Barometer for 2025. Business interruption ranks #2, remaining a key concern across all company sizes, followed by natural catastrophes.
Following a devastating 2024, climate change saw the biggest rise, climbing from #7 to #5, its highest position in the survey's 14-year history.
The Allianz Risk Barometer tracks the most important corporate concerns for the year ahead, as voted for by a record 3,778 risk management experts from 106 countries and territories.
“What stands out in this year’s Allianz Risk Barometer is the interconnectivity of the top risks. A change in one – or indeed a mitigating action – might have a knock-on effect on another, and another. Climate change, emerging technology, regulation and geopolitical risks are increasingly intertwined, resulting in a complex network of cause and effect,” says Michael Bruch, Global Head of Risk Advisory Services, Allianz Commercial.
Here is a summary of the Allianz Risk Barometer ranking:
- Cyber Incidents: Ranked as the #1 global risk for the fourth consecutive year, cyber threats dominate concerns across regions and industries. Companies fear the impact of data breaches most, with this risk leading in 20 countries and eight industries, including aviation, financial services, and technology.
- Business Interruption: At #2 globally, this risk reflects ongoing concerns about supply chain resilience, driven by cyber incidents and natural catastrophes. It leads in the Asia-Pacific region and 12 countries, with industries like consumer goods and manufacturing particularly affected.
- Natural Catastrophes: Rising to #3 from #6 in 2023, this risk reflects the growing impact of extreme weather events, especially in construction and shipping. For the fifth consecutive year, insured losses from natural disasters exceeded USD100 billion.
- Legislative and Regulatory Changes: Holding steady at #4, this risk is influenced by increasing global regulatory requirements, particularly around sustainability, crypto, and AI, with significant concerns about a "regulatory Wild West" in the U.S.
- Climate Change: Rising to #5, its highest position, climate change reflects heightened post-Covid awareness and the growing costs of regulatory compliance and operational disruptions. Companies are adopting insurance, carbon-reducing models, and contingency plans to address this risk.
- Emerging Risks:
- Political Risks and Violence (#9): Concerns include civil unrest, riots, and supply chain impacts, particularly in France, the UK, and Ivory Coast.
- New Technologies (#10): AI enters the top 10, with 50% of respondents viewing it as more beneficial than risky.
- Macroeconomic and Market Trends: Macroeconomic developments fell to #7, with African businesses ranking it higher (#3). Market developments (e.g., competition, M&A) rose to #8, reflecting increased concerns over market dynamics.
Risk by Company Size:
- Large companies prioritize cyber incidents, business interruption, and natural catastrophes.
- Smaller companies see legislative changes rise to #2 and include political risks in their top 10.
Key Mitigation Actions:
- Companies are focusing on supply chain diversification, business continuity planning, and adapting insurance coverage to address these evolving risks.
This comprehensive ranking underscores the interconnected nature of global risks, emphasizing the need for proactive and adaptive strategies.
Read the full Allianz Risk Barometer 2025 here.