Global Risk Management Survey
October 1, 2025 28 mins
A New Era of Converging Risks and Accelerating Disruption
Aon’s 2025 Global Risk Management Survey reveals a complex landscape of converging risks. Success in this environment will go to those who embrace risk not just as a challenge to be managed but as a lever for growth.
Key Takeaways
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Cyber risk tops the global agenda – again – remaining the number one current and future risk for the third time.
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Technology, trade, weather and workforce risks are no longer isolated. Their convergence is creating complex, systemic challenges that demand integrated, cross-functional responses.
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A new era of disruption demands a new approach. Leaders must reframe risk as a value driver - embedding data-driven insights into decision-making to build long-term resilience.
Introduction
We have entered a new era of disruption shaped by four major megatrends: technology, trade, weather and workforce changes. These converging trends are transforming the risk landscape, requiring new strategies to manage complex and interconnected risks across all business areas.
According to our 2025 Global Risk Management Survey, cyber risk remains the top global concern, while geopolitical volatility has surged nearly 30 places in the ranks since 2019 to enter the top 10 for the first time. Climate change and natural disasters have also reached their highest ever ranking, reflecting a significant shift in organizational risk priorities influenced by these evolving trends.
The Top Global Risks in 2025
| Rank | Top 10 Current Risks | Compared to 2023 |
|---|---|---|
| 1 | Cyber Attack or Data Breach | — |
| 2 | Business Interruption | — |
| 3 | Economic Slowdown or Slow Recovery | — |
| 4 | Regulatory or Legislative Changes | ↑ 1 |
| 5 | Increasing Competition | ↑ 5 |
| 6 | Commodity Price Risk or Scarcity of Materials | ↑ 1 |
| 7 | Supply Chain or Distribution Failure | ↓ 1 |
| 8 | Damage to Reputation or Brand | — |
| 9 | Geopolitical Volatility | ↑ 12 |
| 10 | Cash Flow or Liquidity Risk | ↑ 1 |
| Rank | Top 10 Future Risks* | Compared to 2023 |
|---|---|---|
| 1 | Cyber Attack or Data Breach | — |
| 2 | Economic Slowdown or Slow Recovery | — |
| 3 | Increasing Competition | ↑ 4 |
| 4 | Commodity Price Risk or Scarcity of Materials | ↓ 1 |
| 5 | Geopolitical Volatility | ↑ 9 |
| 6 | Regulatory or Legislative Changes | ↓ 1 |
| 7 | Business Interruption | ↓ 1 |
| 8 | Artificial Intelligence (AI) | ↑ 9 |
| 9 | Climate Change | ↑ 3 |
| 10 | Cash Flow or Liquidity Risk | — |
Based on responses from nearly 3,000 risk and business leaders in 63 countries. *Risks that respondents predict will be their critical concerns by 2028. Source: Aon’s Global Risk Management Survey
What stands out in the survey results is how these rapidly rising risks interact, as well as their potential impact on multiple areas of a business. Technology risks intersect with workforce dynamics and challenges in adopting artificial intelligence (AI). Geopolitical instability affects supply chains, influences the regulatory landscape and has an impact on balance sheets. Climate change is a force that intensifies all of these and more. These top risks are systemic and interconnected.
Although these risks pose threats across multiple business functions, performance areas and geographies, they also pose opportunities: to embed a more strategic risk mindset into decision making, to deploy data and analytics in new ways, and to see around corners to become more adaptable and resilient. The companies that take the time to understand these survey results — and develop their agendas accordingly — could be better positioned for the future.
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Why Business Leaders Must Rethink Resilience
Addressing the speed and complexity of the current risk convergence requires a new mindset. Traditional risk strategies and frameworks, designed for more predictable environments and isolated risks, are insufficient. Organizations need to move beyond reactive models and adopt dynamic, integrated and scenario-driven planning that considers how evolving risks affect overlapping areas of the business simultaneously and helps leaders prioritize and invest accordingly.
Rapidly Rising Risks
Yet few are taking this approach. Only 14 percent of survey respondents quantify their exposure to the top 10 risks, and just 19 percent use analytics to evaluate the value of their insurance program, which limits their ability to respond to threats or be confident their capital position is optimized.
Several critical examples illustrate how the highest-ranking risks in our survey intersect and why a more integrated enterprise-wide approach to risk management makes a meaningful difference in today’s environment.
Technology Risk Extends Beyond Cyber and AI
Technology is driving both innovation and disruption, expanding risk exposure to every part of an enterprise. Cyber risk remains the number one concern globally, while increasing competition has climbed from number 10 in 2023 to number five. The rapid adoption of AI and digital platforms is amplifying threats and creating new vulnerabilities, making proactive risk management essential.
Organizations that integrate cyber awareness into their culture and strategic planning, use AI for both cyber defense and innovation, and implement comprehensive business continuity plans are better equipped to create value and sustain resilience. Additionally, many organizations are reassessing the function of risk capital to protect their substantial investments in technology to remain competitive in the evolving landscape of AI.
Geopolitical Risk is Increasingly Fluid and Interconnected
Geopolitical volatility has wide-reaching impact on trade — from supply chains and regulatory environments to reputational risk and beyond. And its impact is seen on balance sheets directly, with volatility influencing cash flow, investment decisions and deal activity.
It’s no surprise, then, that geopolitical volatility is a driver of other top 10 risks: supply chain disruption, economic slowdown and regulatory risk. But the right strategy — including proactive monitoring and flexible governance — can turn volatility into strategic advantage.
Climate Risk is Financial Risk
Climate change and weather and natural disasters have reached their highest-ever survey rankings at 16 and 13, respectively. Climate change is not a distant threat but a current financial reality. Natural disasters and severe weather events are driving up costs due to supply chain disruption, property damage and business interruption.
Many organizations still rely on outdated models that fail to capture tomorrow’s probabilities, leaving them vulnerable to escalating volatility. Integrating climate resilience into strategy, investment and operations is essential to mitigate risk and build long-term value.
The Workforce is a Critical Link in Resilience Strategies
Workforce-related risks, such as rising healthcare costs and absenteeism, are among the most common drivers of financial loss but are underrated in this year’s survey — not even making the global top 20. Human resources (HR) leaders should be involved in all core areas of a company’s strategy so that workforce-related risks and emerging trends can be assessed and mitigated at an enterprise level.
| Rank by Reported Loss Frequency* |
Risk | Overall Risk Ranking |
|---|---|---|
| 1 | Absenteeism | 39 |
| 2 | Exchange Rate Fluctuation | 21 |
| 3 | Economic Slowdown or Slow Recovery | 3 |
| 4 | Work Injuries | 25 |
| 5 | Theft | 48 |
| 6 | Property Damage | 14 |
| 7 | Commodity Price Risk or Scarcity of Materials | 6 |
| 8 | Rising Healthcare Costs | 45 |
| 9 | Counterparty Credit Risk | 28 |
| 10 | Harassment | 53 |
Workforce-related risk
This table ranks the risks with the highest reported levels of loss frequency in the 12 months prior to the survey and compares them with the overall risk ranking. *1 = highest reported loss frequency. Source: Aon’s Global Risk Management Survey
As AI adoption accelerates and reshapes job roles, organizations must treat workforce strategy as a core component of resilience and growth. Aligning HR investment with business transformation is essential to maintaining agility and performance.
What Sets High-Resilience Organizations Apart?
Business leaders can’t and shouldn’t simply manage more risk. They must interpret today’s landscape with clarity and confidence and make decisions that help them survive and thrive in this environment.
Resilient organizations typically have risk functions that share a few common traits:
- Their risk maturity has grown from operational to strategic. These risk professionals are not siloed problem solvers but strategic advisors shaping corporate decisions at the board level.
- They see risk as a function that can drive strategic value by optimizing the allocation of capital through risk transfer, risk retention and risk management, rather than treating it simply as a cost of doing business.
- They manage risk holistically. Interconnected risks — geopolitical, financial, digital, environmental — can’t be managed in isolation. High-performing teams use systems thinking to integrate risk with strategy and performance.
- They value insight, not hindsight. The best-performing teams look beyond historical models. They invest in leading analytics, scenario modeling, correlation analysis and real-time intelligence to predict rather than just react.
A Deeper Dive into the Key Risks Shaping Today’s Disruption Dynamic
What follows is a closer look at the risks redefining today’s business environment — informed by responses from nearly 3,000 business leaders across 63 countries — alongside the critical questions and strategies that can help organizations come out on top of the disruption dynamic.
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AI Accelerates Cyber Risk — and Opportunity
Cyber risk remains the top concern for global organizations, with incidents rising 22 percent in 2025, according to Aon’s Cyber Risk Report. The swift adoption of generative AI, automation and digital platforms is disrupting business models and amplifying both the scale and complexity of threats beyond IT departments to every part of the enterprise.
While some businesses still view AI as a future issue, the rush to deploy untested solutions is already creating new vulnerabilities — including data breaches and reputational damage — and making proactive risk management a strategic imperative.
What’s the Opportunity?
- Use AI to Drive Innovation and Efficiency: By leveraging AI for cyber security and operational enhancement, organizations can automate threat detection, simulate emerging risks and unlock new business models. This transforms technology risk from a defensive concern into a driver of innovation and growth.
- Position Cyber Resilience as a Strategic Advantage: Organizations exhibiting advanced cyber maturity — evidenced by robust controls, comprehensive incident response plans and strong cultural awareness — can leverage trust as a competitive differentiator. An effective approach to cyber resilience bolsters stakeholder confidence, enhances the organization’s insurability and establishes the business as a leader within a risk-aware market.
It is essential to identify AI-related cyber risks and implement structured AI cyber risk management strategies. Proactively evaluating existing cyber controls against AI-driven threats and continually refining risk management frameworks allows organizations to safeguard operations and lead in responsible AI integration and cyber resilience. - Leverage Risk Quantification for Informed Capital Allocation: Quantifying cyber exposure empowers organizations to make more informed decisions regarding insurance coverage, capital allocation and risk transfer. By using advanced analytics and scenario modeling, companies can minimize total cost of risk, secure more favorable contract terms and strategically reinvest released capital.
This approach also ensures that underinsured losses do not become unforeseen financial burdens, thereby protecting future revenue opportunities — especially as resources are directed toward mitigating cyber or privacy incidents rather than away from essential capital expenditures.
When organizations see cyber investments as drivers of efficiency and growth, not just as costs, they gain significant reputational and commercial benefits.
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Geopolitical Volatility: A Rapidly Shifting Landscape
Geopolitical volatility enters the top 10 global risks for the first time in 2025, ranked ninth overall. It is a top five concern in Europe, the Middle East and Africa (EMEA), where ongoing conflicts, sanctions regimes and political fragmentation are directly impacting business operations. In contrast, respondents in Asia Pacific, Latin America and North America rank this risk lower, reflecting differing exposure to geopolitical flashpoints.
Current and Future Risk Rankings for Geopolitical Volatility by Region
Region Current Risk Ranking Future Risk Ranking* EMEA 6 3 North America 13 6 Latin America 17 13 Asia Pacific 11 4 *Risks that respondents predict will be their critical concerns by 2028. Source: Aon’s Global Risk Management Survey
Yet the ripple effects are global. Supply chain failure, business interruption and regulatory risk — all top 10 risks across every region — are increasingly driven by geopolitical triggers. From export controls and energy security to cyber retaliation and shifting trade alliances, organizations face heightened exposure through interconnected supply chains, digital infrastructure and regulatory dependencies. The convergence of domestic political instability, cross-border tensions and rapid policy shifts means that even indirect exposure can result in material disruption.
What’s the Opportunity?
To navigate today’s volatile geopolitical landscape, organizations should focus on three main strategies:
- Turn Disruption into Growth: Monitor global events to identify new markets, form strategic partnerships and diversify operations — aim to transform geopolitical shifts into innovation and expansion.
- Build Supply Chain Resilience: Use scenario planning and flexibility to strengthen supply chain agility and prepare for regulatory changes and unplanned supplier interruption across regions.
- Build Financial Resilience: Understand the most critical nodes in value chains and use risk capital solutions to offset balance sheet exposure. Consider coverage for both property and transit risk, parametric solutions for highly exposed supplier locations, credit solutions for increased cost of replacement supply, and leveraging the use of captive capital.
Getting ahead of geopolitical volatility — by combining local insights with a global view — can help organizations gain a competitive edge.
The idea that you could be immune from geopolitical tension is long gone. Whatever’s going on in another part of the world will eventually impact your business in some form.
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Workforce Risks: A Critical Challenge and Powerful Lever for Growth
Although talent attraction and retention concerns have slipped in global rankings, workforce risks remain a significant driver of losses for organizations navigating today’s disruption dynamic.
Business uncertainty has led to cautious hiring and slowed recruitment cycles, while rising healthcare costs are placing pressure on discretionary HR budgets. Succession planning is gaining strategic importance as a de-risking tool, and pay transparency is emerging as a reputational and financial risk, particularly for organizations with footprints in Europe. Meanwhile, the race for AI talent is intensifying, with value creation concentrated in specific geographies and costs becoming prohibitive for many.
The convergence of these risks creates a more complex and volatile landscape. Organizations are being forced to do more with less, rethink traditional workforce models and find new ways to align talent strategy with business resilience.
What’s the Opportunity?
To thrive, leaders must embed workforce resilience into their business strategies:
- Optimizing Workforce Investment: Organizations should leverage workforce analytics to understand what employees value most and align total rewards strategies accordingly. This enables smarter trade-offs in the face of rising costs and limited budgets, helping businesses maintain or increase engagement while improving cost efficiency.
- Future-Proofing Talent Strategy: Prioritize upskilling and reskilling, especially in digital and AI capabilities, to build a workforce equipped for transformation. Elevating HR into a strategic enablement function ensures job roles and processes evolve with business needs. This unlocks innovation, supports agility and positions the organization to lead in a rapidly changing market.
- Embedding Culture into Risk Strategy: Culture is a measurable driver of resilience. Companies should implement continuous culture measurement frameworks with defined KPIs that inform risk management and strategic planning. This approach strengthens employee engagement, reduces attrition and enhances overall performance by aligning people strategy with enterprise business and risk goals.
Organizations that meet these challenges head-on can unlock new sources of value and position themselves for long-term success, even as the business landscape changes.
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Climate Risk Amplifies Other Exposures
Climate change appears in the top 10 future risk ranking for the first time this year, reflecting its growing role as a risk amplifier. Escalating weather-related losses, estimated at $100 billion in insured damages in the first half of 2025 — the highest since 2011 — are straining balance sheets and exposing vulnerabilities in supply chains, operations and infrastructure.
From floods in Spain and Brazil to wildfires in California and rare freezes in Texas, the volatility of today’s weather contrasts sharply with the relative predictability of two decades ago. At the same time, the rapid expansion of AI and data centers is creating skyrocketing global energy demand, compounding climate-related pressures, despite a growth in renewable-energy supply.
What’s the Opportunity?
- Move Beyond Compliance to Strategic Value: Many organizations are responding to climate risk primarily to meet regulatory requirements such as the Directive on Corporate Sustainability Reporting (CSRD), but there is also opportunity beyond compliance. Climate assessment and modeling can inform investment decisions, prioritize resources to improve resilience and create long-term value. Leaders should ask whether their climate strategy is delivering business impact or simply satisfying reporting obligations.
- Treat Climate as a Risk Amplifier, Not Just a Category: Climate change intensifies other risks, such as supply chain disruption and geopolitical volatility. Organizations should assess exposure across the full value chain and model how climate interacts with other risks to build more realistic scenarios and better prepare for cascading impacts.
- Break Down Silos to Elevate Risk and Sustainability Roles: Climate risk affects every part of the business, from insurance and procurement to strategy and operations. By fostering collaboration among sustainability, risk and finance teams, companies can share data more effectively, reduce blind spots and position risk managers as strategic advisors in capital allocation and site planning.
Organizations must shift from viewing climate as a stand-alone risk to understanding its correlation with other exposures, using scenario modeling and integrated analytics to anticipate knock-on effects and inform strategic decisions.
Scenario-driven risk assessment helps organizations model future risks and build resilience. It’s about understanding correlations—like between political and climate risks—to inform better strategies.
Harnessing the Power of Data: Transforming Risk into Opportunity
As traditional risk management methods become less effective, organizations must use data to inform their strategies and understand the interconnected landscape they operate in. We encourage them to:
- Invest in Actionable Analytics and Scenario Modeling: Use predictive tools to assess frequency and severity across interconnected risks such as cyber, supply chain, climate and geopolitical volatility. These tools enable better decisions about coverage and capital allocation and align them to risk appetite.
For example, leading organizations are now using AI-driven models to simulate the financial impact of emerging risks that lack historical loss data, such as AI liability or digital outages. This allows them to anticipate volatility rather than merely react to it, and to design insurance programs that reflect their true exposure. - Monitor Trends with Horizon Scanning and Key Risk Indicators: Move beyond claims-based metrics to track emerging threats and market signals. Horizon scanning, combined with key risk indicators, helps organizations detect when risks begin to breach thresholds, whether that’s a spike in cyber incidents, a shift in regulatory sentiment or a geopolitical flash point. This proactive monitoring enables earlier intervention and more agile decision making.
- Align Insurance Strategy with Enterprise Risk Priorities: Use quantitative analytics tools to test and model scenarios and insurance program options, including alternative risk transfer, to ensure that risk financing strategy is aligned to risk tolerance. This can help optimize total cost of risk and free up capital that can be reinvested elsewhere to support growth.
Ultimately, organizations that proactively integrate data-driven, strategic risk management and break down silos across functions will be best positioned to thrive in an increasingly complex and interconnected risk landscape.
The pace of change from the old world to the new world is getting faster and becoming more integrated. So risk management approaches need to become faster and more integrated. Data and analytics are a great enabler for that.
Conclusion: Rethinking Resilience for a New Era of Risk
As we respond to the pressures of converging risks and accelerating disruption, business leaders have a unique opportunity to redefine what resilience means in the modern era. The megatrends of technology transformation, trade volatility, severe weather events and workforce evolution are disrupting the status quo — but also inviting us to reimagine the very foundation of enterprise risk management.
Turning Risk into a Competitive Advantage
The survey findings are clear: Risks once considered isolated now intersect and reverberate across all facets of business, amplifying both vulnerabilities and opportunities. Success in this environment will go to those who embrace risk not just as a challenge to be managed but as a lever for innovation, value creation and competitive advantage.
To thrive, leaders should foster a culture in which risk insights drive strategic decisions, not just operational response. Embedding real-time analytics, scenario planning and systems thinking into organizational DNA can transform risk into a source of clarity and confidence. By quantifying exposures, investing in proactive mitigation, and aligning risk and capital strategy, organizations can unlock new efficiencies and redirect resources toward growth, rather than simply reacting to threats.
Embedding Resilience Across the Enterprise
Most importantly, resilience must become a whole-enterprise pursuit. Breaking down silos between functions, integrating sustainability and workforce strategies, and empowering risk professionals as strategic advisors ensures that organizations are equipped to adapt, absorb shocks and seize emerging opportunities.
The landscape ahead will remain dynamic, but it is within each organization’s power to lead change, not just respond to it. By building resilience on a foundation of insight, agility and collaboration, today’s business leaders can turn disruption into a catalyst for long-term success — shaping a future that is not only more secure but also filled with possibility.
To download a PDF version of Aon’s Global Risk Management Survey key findings, click here.
Global Risk Management Survey
Global Risk Management Survey Key Findings (PDF)
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