What's Happening?
Aon's 2025 Global Risk Management Survey has identified cyber risk as the top concern for businesses worldwide, with geopolitical volatility entering the top 10 for the first time. The survey, which involved nearly 3,000 risk managers and executives across 63 countries, highlights the growing complexity and interconnectedness of global business risks. Cyber threats remain the most pressing issue due to the rapid adoption of digital platforms and AI technologies, which have expanded the attack surface for threat actors. Geopolitical volatility has surged 12 places since the last survey in 2023, now ranking ninth globally, and is expected to rise to fifth by 2028. This risk is particularly pronounced in regions like Europe, the Middle East, and Africa, where ongoing conflicts and political fragmentation directly impact business operations.
Why It's Important?
The identification of cyber and geopolitical risks as top business concerns underscores the need for organizations to build resilience through analytics and scenario planning. Cyber risk, with its potential for significant financial and reputational damage, requires businesses to integrate cyber strategies at the board level and invest in quantification. Geopolitical volatility, affecting supply chains and regulatory landscapes, demands a comprehensive approach to risk management. The survey's findings highlight the systemic and interconnected nature of these risks, emphasizing the importance of an integrated enterprise-wide approach to risk management. As businesses face increasing volatility and uncertainty, adapting to these challenges is crucial for maintaining operational stability and competitive advantage.
What's Next?
Businesses are expected to enhance their risk management strategies by embedding geopolitical insights and regularly updating continuity plans. The survey suggests that organizations must diversify supply chains and invest in analytics to evaluate insurance programs effectively. As geopolitical volatility is forecasted to rise in importance, companies will need to adapt to shifting alliances and evolving tariffs. Additionally, the continued prominence of cyber risk will require ongoing investment in cybersecurity measures and resilience strategies. The survey indicates that climate change and artificial intelligence will also become critical future risks, necessitating proactive measures to address their impact on global business operations.
Beyond the Headlines
The survey reveals a concerning gap between awareness and action, with only 13% of respondents having quantified their cyber exposure. This underinsurance exposes businesses to significant risks, highlighting the need for more comprehensive risk assessment and management practices. The drop in workforce risks from the top 10 list, despite ongoing talent shortages, suggests a potential oversight in addressing human capital challenges. As technology and climate change continue to shape the business landscape, organizations must recognize the interconnectedness of these risks and adapt their strategies accordingly.
