Cyber incidents such as data breaches or ransomware attacks, and IT disruptions are the biggest concern for companies globally in 2025, according to the Allianz Risk Barometer.
“2024 was an extraordinary year in terms of risk management and the results of our annual Allianz Risk Barometer reflect the uncertainty many companies around the globe are facing right now. What stands out this year is the interconnectivity of the top risks. Climate change, emerging technology, regulation and geopolitical risks are increasingly intertwined, resulting in a complex network of cause and effect. Businesses need to adopt a holistic approach to risk management and consistently strive to enhance their resilience in order to address these fast-evolving risks,” says Allianz Commercial chief underwriting officer Vanessa Maxwell.
Key takeaways:
- Smaller companies are more concerned about more localized and immediate risks, such as regulatory compliance, macroeconomic developments and skill shortages.
- Once again, business interruption is a main concern for companies of all sizes, ranking No. 2, with natural catastrophes at No. 3 and changes in legislation and regulation at No. 4. The biggest riser in this year’s study is climate change, from No. 7 to No. 5, achieving its highest-ever position in 14 years of the survey.
- Cyber incidents (38% of overall responses) rank as the most important risk globally for the fourth year in a row – and by a higher margin than ever (7% points). It is the top peril in 20 countries, including Argentina, France, Germany, India, South Africa, the UK and the United States. More than 60% of respondents identified data breaches as the cyber exposure companies fear most, followed by attacks on critical infrastructure and physical assets with 57%.
“For many companies, cyber risk, exacerbated by rapid development of artificial intelligence (AI), is the big risk overriding everything else. It is likely to remain a top risk for organizations going forward, given the growing reliance on technology – the CrowdStrike incident in summer 2024 once again underlined how dependent we all are on secure and dependent IT systems,” says Rishi Baviskar, global head of cyber risk consulting at Allianz Commercial.
“The push for technological advancement and efficiency is affecting the resilience of supply chains. Automation and digitization have significantly accelerated processes, which sometimes overwhelm individuals due to the rapid pace and complexity of modern technology. However, when implemented effectively, these technologies can also enhance resilience by providing better data analytics, predictive insights, and more agile response capabilities. This is why building and investing in resilience is becoming critical for every company around the globe,” says Michael Bruch, global head of risk advisory services at Allianz Commercial.
“The effect of new tariffs will be pretty much the same as with (over)regulation: ramping up costs for all companies affected,” says Ludovic Subran, chief investment officer and chief economist at Allianz. “However, not every regulation is inherently ‘bad’. And more often than not it is the implementation of rules that make corporate life difficult. Not only the number of rules but also an efficient administration that makes compliance as easy as possible should be the focus. A thorough digitization of the administration is urgently needed. However, in 2025, too, we will probably still be waiting in vain for a corresponding digital strategy. Instead, trade wars are coming. The outlook is not rosy.”
