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Allianz’s 2025 Risk Barometer identifies the following as the top five risks facing global business in 2025: cyber incidents, business interruption, natural catastrophes, changes in legislation and regulation, and climate change. Here’s what Allianz has to say about business interruption:

Business interruption ranks #2 in the Allianz Risk Barometer, meaning it has appeared in the top two risks for the past 10 years. It is the top risk in the Asia Pacificregion (new) and in 12 countries / territories – Austria (new), Canada, China (new), Hong Kong (new), Indonesia (new), Malaysia, Mexico (new), Netherlands, Philippines (new), Singapore, South Korea and Sweden (new).

It is also the top risk in (11) industries: Consumer goods (new), entertainment, food and beverages, heavy industry, hospitality (new), manufacturing (both automotive and other), oil and gas, power and utilities, renewable energy, and transportation and logistics (new).

The impact of a cyber incident or a natural catastrophe are the business interruption exposures companies fear most. The most important actions that companies are taking to de-risk their supply chains and make them more resilient, according to respondents are: Developing alternative/multiple suppliers; Broadening geographical diversification of supplier networks in response to geopolitical trends; and Initiating/improving business continuity management.

Allianz says that the top risks for large companies mirror its top global risks, with cyber incidents, business interruption and natural catastrophes leading the way. For smaller companies, the risks of changes in legislation and regulation have become more significant, and risks like climate change and political violence that were in the past concerns for larger businesses have become more prominent for smaller companies.

– John Jenkins