The Top 5 Business Concerns for 2025 (Plus a Newly Emerging Risk)
6-minute read
For the past two years, we’ve turned to the Allianz Risk Barometer to uncover the biggest threats businesses face. This annual report from global insurer Allianz Group highlights the key concerns and emerging challenges shaping the year ahead.
Today, we look into the five biggest concerns keeping business leaders up at night – plus one rising challenge on the horizon. Understanding these risks can help companies prepare for what lies ahead.
The report, based on a survey of 3,778 risk management experts across 106 countries, reveals the top risks for businesses in 2025:
- Cyber incidents are the biggest threat, with 38% of experts identifying them as their top concern—a record 7% increase from previous years.
- Business interruption ranks #2 (31%), showing how disruptions can severely impact operations.
- Natural catastrophes are #3 (29%), emphasizing the growing risks from extreme weather events and disasters.
- Changes in legislation and regulation hold the #4 spot (25%), driven by evolving sustainability rules and emerging tech governance.
- Climate change is at its highest-ever ranking at #5 (19%), as businesses deal with new regulations, compliance costs, and operational disruptions from worsening weather patterns.
- Artificial intelligence (AI) risks have entered the top 10 for the first time, reflecting concerns about its rapid development.
Let’s look into these risks in more detail.
Cyber Incidents: The Biggest Business Risk in 2025
Cyber incidents, including ransomware attacks, data breaches, and IT outages, are the #1 global risk for businesses in 2025.
This marks the fourth year in a row at the top, rising from #8 a decade ago with just 12% of responses to 38% today.
“For many companies, cyber risk, exacerbated by the rapid development of AI, is the big risk overriding everything else,” – says Rishi Baviskar, Global Head of Cyber Risk Consulting, Allianz Commercial
Cyber threats are the top concern worldwide, ranking #1 across North and South America, Europe, and Africa, as well as in 20 countries across both developed and emerging economies. It’s also the leading risk for businesses of all sizes and industries.
Ransomware attacks are increasing, often targeting sensitive data to pressure companies into paying. And data breaches are the most feared cyber risk.
According to Daniel Muller, Emerging Risks and Trends Manager, Allianz Commercial cyber is likely to remain a top risk for organizations going forward, given the growing reliance on technology and as AI is incorporated into a growing number of products and services:
“Advancements in technology, enhanced connectivity, faster network speeds, and the rise of remote work and digital commerce will continue to elevate cyber risks, such as data breaches and ransomware attacks. AI will further amplify and accelerate these threats, but it also holds the potential to enhance cyber security measures, offering a dual-edged sword in the digital landscape.”
Cyber risks are closely linked to other top business threats. According to the Allianz Risk Barometer, cyber incidents are the leading cause of business interruption, making them a major concern for companies worldwide.
Business Interruption
Business interruption (BI) has consistently ranked #1 or #2 in the Allianz Risk Barometer for the past decade. It remains a top concern due to supply chain disruptions, which worsened during and after the pandemic.
BI is often triggered by natural disasters, cyberattacks, insolvency, or political risks like conflict and civil unrest.
In 2025, BI is the #1 risk in the Asia-Pacific region and the top concern for 11 industries, including food, consumer goods, hospitality, heavy industry, energy, transport, and manufacturing.
According to respondents, the biggest BI risks are cyber incidents and natural catastrophes, followed by fire, machinery breakdown, and supplier failure.
The increasing use of automation and digitization has made supply chains more efficient but also more vulnerable.
“Automation and digitization have significantly accelerated processes, which can sometimes overwhelm individuals due to the rapid pace and complexity of modern technologys” – says Michael Bruch, Global Head of Risk Advisory Services, Allianz Commercial
One of the largest BI events last year was the CrowdStrike IT outage in July, caused by a faulty security software update. It impacted Microsoft Windows systems, costing Fortune 500 companies over $5.4 billion in losses, with insured losses between $540 million and $1 billion.
“Last year’s outage affecting CrowdStrike and Microsoft users was a reminder that IT and software supply chains can go down, and when they do, it can have a global impact,” – Rishi Baviskar, Global Head of Cyber Risk Consulting, Allianz Commercial
Supply chain disruptions with global effects now occur approximately every 1.4 years, a trend that is rising.
These disruptions can increase product costs by 5% to 10% and cause additional downtime, according to a white paper from Circular Republic, in collaboration with Porsche Consulting2, Allianz and Agora Strategy.
Shipping and transport risks are also growing concerns, reflecting disruption brought by Yemen’s Houthis in the Red Sea and drought-related transit restrictions in the Panama Canal that are affecting global trade.
As 90% of global trade relies on sea transport, disruptions can have massive economic consequences. A prime example is the Ever Given blockage of the Suez Canal in 2021, which lasted six days and cost an estimated $60 billion in losses.
With increasing cyber threats, climate risks, and geopolitical tensions, business interruption will remain a top concern in 2025.
Natural Catastrophes
Natural catastrophes remain a top concern in this year’s Allianz Risk Barometer.
In 2024, total economic losses from natural catastrophes reached US$310 billion, according to Swiss Re. Severe convective storms, tropical cyclones, and floods accounted for nearly 90% of all global insured losses related to natural events and 85% of total economic losses from natural hazards.
“In addition, every major continent experienced at least one historically anomalous extreme weather or climate event last year,” notes Mabé Villar Vega, Senior Catastrophe Risk Research Analyst at Allianz Commercial.
Changes in Legislation and Regulation
Legislation and regulation are still ranked among the top four risks in the Allianz Risk Barometer.
Sustainability reporting requirements are high on the agenda, while companies are also more concerned about the prospect of tariffs.
Both the EU and the US have promised to cut bureaucracy in 2025. Ursula von der Leyen has pledged to reduce red tape, while Donald Trump has created the Department of Government Efficiency (DOGE) to simplify regulations.
However, many businesses remain sceptical, as reducing bureaucracy has been promised before but rarely delivered.
Climate Change
Climate change has risen to #5 in the global risk rankings, its highest position yet.
The renewed focus comes after extreme weather events and record-breaking temperatures in 2024.
Hail, floods, and wildfires are now more significant threats than traditional risks like earthquakes and tropical cyclones.
Businesses are most concerned about physical damage and business interruptions caused by climate change. Managing transition risks—such as decarbonization and net-zero strategies—has also become a top sustainability challenge due to complex regulations, policy uncertainty, and data transparency issues.
“Every action we take has an impact. To reduce greenhouse gas emissions, we must collectively change our behaviors, such as reducing waste, conserving energy, and adopting sustainable practices,” says Daniel Muller, Emerging Risks and Trends Manager, Allianz Commercial.
The increasing frequency of costly disasters raises concerns about the affordability and insurability of properties in high-risk areas.
“The burden of natural disasters will increasingly fall on governments and taxpayers in areas prone to costly hurricanes, storms, and floods. Climate change raises critical questions about the insurability and affordability of coverage for frequent or likely events. Therefore, the focus must urgently shift to loss prevention and mitigation, involving governments, insurers, and communities,” Muller adds.
Newly Emerging Risk
New technologies, particularly AI, have entered the top 10 global risks at #10 for 2025, driven by rapid advancements since the launch of OpenAI’s ChatGPT in 2022. While AI offers efficiency and process improvements, it also introduces new risks.
“Companies have little choice but to adopt AI due to its rapid advancement. Those who hesitate risk falling behind competitors and missing valuable opportunities. While technology development used to be gradual, today’s fast-paced AI landscape, coupled with regulatory and legal lag, demands swift adoption,” says Daniel Muller, Emerging Risks and Trends Manager, Allianz Commercial.
Opinions on AI’s impact are divided—50% of respondents see more benefits than risks, 35% are neutral, and 15% believe risks outweigh the benefits.
AI presents both opportunities and threats. Take cyber risk. AI is being used by criminals and nation-states to cause disruption or spread misinformation.
But it can also help mitigate risks and build resilience, says Rishi Baviskar, Global Head of Cyber Risk Consulting, Allianz Commercial, who stresses that AI also has a vital role to play in helping to mitigate the impact of cyber-attacks.
“AI can help improve processes and productivity, but it also impacts employees and raises questions in areas like ethics, privacy and cyber security. There is a balance to be found between the risks and the rewards.”
Source: Allianz Risk Barometer 2025, Allianz Commercial. The full report can be found here
P.S. Easy Freight Ltd helps New Zealand importers & exporters to save money on international freight and reduce mistakes by guiding how to comply with Customs and biosecurity rules.
➔ Contact us now to learn how we can assist you.