There has been a sharp rise in risks associated with geopolitical volatility and a broader shift in how organisations perceive and prioritise risk, according to AON’s 2025 edition of its Global Risk Management Survey, which has tracked the most-pressing risks for business decision-makers for nearly two decades.
Based on responses from nearly 3 000 risk managers, C-suite leaders and executives in 63 countries, geopolitical volatility surged 12 places since the last survey in 2023, breaking into the top 10 global risks for the first time in the survey’s 19-year history.
The rise of risks related to trade and geopolitical challenges reflects growing instability across regions, with implications for supply chains, regulatory environments and financial performance.
Despite rising volatility, most organisations remain underprepared: only 14% of respondents track their exposure to the top ten risks and only 19% use analytics to evaluate the value of their insurance programs. These findings underscore the urgent need for organisations to rethink their approach to risk, moving from reactive measures to proactive, integrated strategies.
“The dramatic rise of trade and geopolitical risk highlights a new reality: volatility and uncertainty are now constants for organisations,” says Joe Peiser, CEO of commercial risk at Aon. “From evolving tariffs to shifting alliances, these forces directly impact organisations’ balance sheets. Building resilience through analytics and scenario planning is essential for navigating this environment.”
The top 10 global risks in 2025 are:
- Cyber Attack or Data Breach
- Business Interruption
- Economic Slowdown or Slow Recovery
- Regulatory or Legislative Changes
- Increasing Competition
- Commodity Price Risk or Scarcity of Materials
- Supply Chain or Distribution Failure
- Damage to Reputation or Brand
- Geopolitical Volatility
- Cash Flow or Liquidity Risk
“Cyber Attack or Data Breach” remains the number one current and future risk, as the rapid adoption of digital platforms and AI technologies has expanded the attack surface for threat actors. With AI-enhanced cyber incidents on the rise, business leaders are shifting from reactive postures to proactive risk management strategies.
“The scale and complexity of cyber risk today is unlike anything we’ve seen before,” says Brent Rieth, global cyber leader at Aon. “Our clients are increasingly using AI both defensively and offensively, to enhance resilience and unlock growth. The key is embedding cyber into board-level strategy, investing in quantification and viewing resilience as a competitive differentiator.”
Despite its top ranking, only 13% of respondents say they have quantified their cyber exposure. This gap between awareness and action is contributing to significant underinsurance, exposing businesses to financial and reputational loss. The report emphasises the need for structured AI risk governance and integrated cyber resilience frameworks to reduce this gap.
In 2023, “Failure to Attract and Retain Top Talent” ranked fourth globally on Aon’s survey, highlighting Human Capital as a critical business risk. This year, workforce risks dropped out of the top 10, despite ongoing talent shortages and rising healthcare costs.
“It’s alarming to see workforce risks slip down the rankings when Human Capital challenges remain deeply connected to every aspect of business resilience,” says Lisa Stevens, chief administrative officer for Aon. “When you look at the top 10 risks in this year’s survey – cyber threats, supply chain disruptions, geopolitical volatility – they all have a direct impact on the workforce. Treating these risks as isolated issues creates blind spots for organisations.”
Stevens adds: “As AI transforms how and where people work, Human Capital strategies become even more critical. Leaders need to invest in analytics, personalisation and skills development to keep their workforce agile and resilient in the face of rapid change and increasing volatility.”
Aon’s 2025 survey also provides a forward-looking perspective on the risks business leaders expect to be most critical by 2028. Cyber risk remains the top concern for the future, while AI and climate change join the top 10, reflecting the accelerating impact of technology and extreme weather on global business.
Climate change climbs to number nine on the future risk list, underscoring heightened awareness of its threat to financial and operational stability. With 2024 marking the hottest year on record and global insured catastrophe losses exceeding $145-billion, leaders are increasingly treating climate as a systemic business risk.
Respondents rank the top 10 future risks by 2028 as the following:
- Cyber Attack or Data Breach
- Economic Slowdown or Slow Recovery
- Increasing Competition
- Commodity Price Risk or Scarcity of Materials
- Geopolitical Volatility
- Regulatory or Legislative Changes
- Business Interruption
- Artificial Intelligence
- Climate Change
- Cash Flow or Liquidity Risk
“What’s striking about this year’s future risk rankings is how quickly new forces like AI and climate move to the forefront,” says Richard Waterer, global risk consulting leader for Aon. “These risks don’t just add complexity; they fundamentally change how organisations need to think about resilience.
“The convergence of technology, geopolitics and environmental pressures means leaders must anticipate how these megatrends interact and build strategies that are flexible enough to adapt to whatever comes next.”