The climate and the rise in the use of artificial intelligence are redefining global risks and creating a need for businesses to change the way they approach the issue of operational resilience.

Broking giant Aon has released the 2025 edition of its Global Risk Management Survey, which has tracked the most-pressing risks for business decision-makers for nearly two decades. The findings reveal a sharp rise in risks associated with geopolitical volatility and a broader shift in how organisations perceive and prioritise risk.

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 ten 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.

It warned despite rising volatility, most organisations remain underprepared: only 14 percent of respondents track their exposure to the top ten risks and only 19 percent 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 in our rankings highlights a new reality – global volatility and uncertainty are now constants in business. These forces have tangible consequences for clients’ balance sheets,” said Joe Peiser, CEO of Commercial Risk for Aon. “These forces have tangible consequences for clients’ financial performance, from new tariffs to shifting alliances, businesses must recognise that volatility is here to stay – treating risk as a strategic advantage means embedding real-time analytics, scenario planning, and systemic thinking into every function to transform resilience from a siloed response into an enterprise-wide capability.”

Aon said for 2025 the top ten global risks are:

1. Cyber Attack or Data Breach
2. Business Interruption
3. Economic Slowdown or Slow Recovery
4. Regulatory or Legislative Changes
5. Increasing Competition
6. Commodity Price Risk or Scarcity of Materials
7. Supply Chain or Distribution Failure
8. Damage to Reputation or Brand
9. Geopolitical Volatility
10. Cash Flow or Liquidity Risk

“Cyber Attack or Data Breach” remains the number one current and future risk according to the survey respondents, 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,” said Brent Rieth, global cyber leader for 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 percent 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 emphasizes the need for structured AI risk governance and integrated cyber resilience frameworks to reduce this gap.

Aon’s survey also provided 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 ten, 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.

Top 10 Future Risks by 2028:

1. Cyber Attack or Data Breach
2. Economic Slowdown or Slow Recovery
3. Increasing Competition
4. Commodity Price Risk or Scarcity of Materials
5. Geopolitical Volatility
6. Regulatory or Legislative Changes
7. Business Interruption
8. Artificial Intelligence
9. Climate Change
10. 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,” said Richard Waterer, global risk consulting leader for Aon. “These risks don’t just add complexity; they fundamentally change how organizations 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.”

“Cyber Attack or Data Breach” remains the number one current and future risk according to the survey respondents, as the rapid adoption of digital platforms and AI technologies has expanded the attack surface for threat actors.