As businesses prepare for 2025, the Allianz Risk Barometer reveals a landscape dominated by interlinked global challenges. Cyber-attacks, particularly data breaches, have been identified as the leading risk, with 38% of companies marking them as their top concern. Following closely are business interruptions (31%) and natural catastrophes (29%). Climate change climbs to its highest-ever position at #5, reflecting a year marked by extreme weather and record-breaking temperatures.
Cybersecurity remains the top concern for businesses worldwide for the fourth consecutive year. The increasing sophistication of cyber threats, exacerbated by advances in artificial intelligence, has businesses on edge. Data breaches remain the most feared cyber incident, followed by attacks on critical infrastructure.
Rishi Baviskar, Global Head of Cyber Risk Consulting at Allianz Commercial, noted, “The rapid development of AI and the growing reliance on technology have made cyber risk a dominant concern. Incidents like the CrowdStrike breach in 2024 underscore the critical need for robust cybersecurity measures.”
Business interruptions (BI) hold their position as the second-highest risk, illustrating their ripple effect across industries. BI often stems from events like cyber-attacks or natural disasters, disrupting operations and supply chains. Notable incidents in 2024, including the Houthi attacks in the Red Sea and the collapse of Baltimore’s Francis Scott Key Bridge, highlighted the global vulnerability to supply chain disruptions.
Michael Bruch, Global Head of Risk Advisory Services at Allianz Commercial, emphasized the importance of resilience: “The push for technological advancement has increased supply chain complexity, but when implemented effectively, technology can provide critical insights and enhance response capabilities.”
The impact of climate change has surged in importance, now ranking as the fifth-highest global risk. With 2024 expected to be the hottest year on record, the frequency and intensity of natural disasters are reshaping risk priorities. Floods in Europe and Asia, North American hurricanes, and African droughts collectively pushed climate concerns into sharper focus.
Countries like Japan, Spain, and Turkey experienced some of the most devastating natural events, driving the peril of natural catastrophes to rank third globally. Insured losses exceeded $100 billion for the fifth consecutive year, underscoring the financial toll of these events.
Geopolitical risks and regulatory changes also weigh heavily on businesses. Rising protectionism, trade wars, and evolving regulations around AI and sustainability are expected to challenge global commerce in 2025. While geopolitical risks dropped slightly in overall rankings, their impact on large companies remains significant, climbing to #7.
Ludovic Subran, Chief Economist at Allianz, remarked, “New tariffs and regulatory burdens increase costs for businesses. Efficient implementation and digital administration are crucial to managing these challenges, yet progress remains slow.”
Vanessa Maxwell, Chief Underwriting Officer at Allianz Commercial, emphasized the interconnected nature of today’s risks: “Climate change, emerging technology, and geopolitical tensions create a complex network of challenges. Businesses must adopt a holistic approach to risk management and build resilience to address these evolving threats.”
As 2025 unfolds, the Allianz Risk Barometer serves as a stark reminder of the pressing need for preparedness and adaptation in an increasingly volatile world.