#USA #Dublin #Aon #Geopolitical Risks #Cyber Attack

Emerging Business Risks in 2025

Aon plc recently released the 2025 edition of its Global Risk Management Survey, a report that highlights the evolving landscape of risks influencing business strategies worldwide. For the first time in nearly two decades, the survey indicates that geopolitical volatility has surged into the top ten list of global business risks. With responses from close to 3,000 executives across 63 countries, this report reflects a notable shift in how leaders perceive and prioritize risks.

A Sharp Rise in Geopolitical Volatility

In the 2025 survey, geopolitical volatility jumped a staggering 12 places, carving a niche in the top ten risks. This dramatic rise underscores an increasingly unstable global backdrop, fueled by trade conflicts and political upheavals affecting supply chains and business operations. Aon CEO Joe Peiser emphasized the importance of adjusting risk management strategies to combat these uncertainties.

"From evolving tariffs to shifting alliances, these forces directly impact organizations' balance sheets," Peiser commented. The survey highlights that only 14% of organizations are proactively tracking their exposure to these risks, while a mere 19% leverage analytics to gauge the efficacy of their insurance programs, pointing to a critical need for firms to adopt a more proactive risk management framework.

Cybersecurity: The Looming Threat

Continuing to dominate concerns for businesses, "Cyber Attack or Data Breach" ranked as the top risk to organizations. The rapid adoption of digital infrastructure and AI technologies has expanded the terrain for cyber threats, necessitating businesses to transition from reactive to proactive risk strategies. Brent Rieth, Aon's Global Cyber Leader, noted, "The scale and complexity of cyber risk today is unlike anything we've seen before."

Despite its critical placement, only 13% of survey respondents have quantified their cyber exposure, resulting in considerable underinsurance, which jeopardizes their financial stability. This gap between awareness and action highlights an urgent need for enhanced governance and structured cyber resilience frameworks.

Workforce Risks Diminish in Importance

An unexpected finding from the survey is the decline in the perceived risk of talent acquisition and retention. In 2023, the failure to attract and retain top talent was rated as the fourth highest risk, but in the current survey, it fell out of the top ten entirely. Aon's Chief Administrative Officer, Lisa Stevens, expressed concern over the declining emphasis on workforce-related risks given the ongoing challenges in attracting qualified personnel and soaring healthcare costs.

Stevens pointed out that many of the top current risks directly influence workforce dynamics. The interconnectedness of cyber threats, supply chain challenges, and geopolitical instability effectively raises Human Capital issues' stakes.

Looking Ahead: Future Risk Landscape

The survey also projects the significant risks on the horizon by 2028. Cyber risk continues to lead as the primary concern, followed closely by economic slowdowns and increasing competition. Climate change ranks as the ninth most critical future risk, reflecting the growing acknowledgment of its impact on operational stability, especially in light of increasing global temperatures and associated disasters.

Richard Waterer, Aon's Global Risk Consulting Leader, emphasized the need for organizations to adapt to these rapidly changing threats. "The trends of technology, geopolitics, and climate are converging in ways that affect resilience strategies," Waterer stated.

In conclusion, Aon's 2025 Global Risk Management Survey stresses the crucial need for organizations to adopt a forward-thinking approach to risk management. By integrating analytics, preparing for volatility, and recognizing the importance of human capital while navigating the interconnected megatrends, businesses can better equip themselves to tackle the evolving landscape of risks that the future holds.

To explore the full report and understand how Aon can assist in navigating these disruptions, visit Aon’s Global Risk Management Survey.