Businesses have been told they need to redefine their risk strategies as they are forced to navigate a risk environment more layered and unpredictable than ever.

The call comes as insurance group Beazley issued it’s 2025 Geopolitical and Economic Risk & Resilience report which surveyed 3,500 senior business leaders.

The report found:

• 68% of businesses cited geopolitical and economic uncertainty as a roadblock to growth, rising to 83% in July 2025.
• Over a quarter (27%) note inflationary pressures as a top risk in 2025 – up from 24% in 2024.
• 21% said economic uncertainty was their biggest threat in 2024. Now in 2025 it’s 26%.

It added these converging risks are leading many businesses to take a short term approach, however Beazley added the report highlights the real opportunities lie in looking ahead. Firms embedding sharper foresight, faster adaptation and a clear view of where risk meets opportunity are continuing to grow in the testing environment. Agility is no longer just defensive; it is a competitive advantage.

Bethany Greenwood, CEO of Beazley Furlonge Limited and group head of Specialty Risks Beazley, said: “Resilience isn’t just about surviving disruption; it is about turning risk into competitive advantage. Innovative insurance solutions, including political risk coverage, parametric supply chain protection and crisis management services, are helping businesses act confidently in uncertain conditions.”

The report added in response to the challenges they face, 32% of forward-looking companies plan to reassess the security of their overseas operations this year, up from 23% last year. This signals a clear shift in mindset – they are treating security threats as active risks, not distant possibilities. A further third (32%) of global firms also plan to explore insurance that includes risk and crisis management – up from 24% in 2024. As an example, supply chain disruption is no longer a future threat. Nearshoring, friendshoring and flexible logistics networks are now standard. In fact, 87% plan to adjust suppliers or reroute operations due to geopolitical tensions.

The insurer said despite uncertainty, firms are investing in AI, fusion energy and lunar exploration. These ventures carry risk but offer strategic advantage when combined with risk management and insurance solutions. 35% of firms are boosting investment in risk management and loss prevention measures, an increase from 23% in January 2024 to ensure bold innovation is backed by resilience.

The report explained firms are taking a more strategic approach to risk transfer and prevention. Insurance is evolving beyond protection. As such, firms are using it to:

• Expand into new markets despite political or regulatory hurdles
• Secure critical energy and mineral resources
• Stay ahead of emerging risks, from cyber threats to geopolitical disruption

The report added:” Seismic shifts mean businesses need to be shrewd on the uptake – it’s time to rethink risk management strategies.

“After all, protectionism is back. Newly elected governments are pulling up the drawbridges, redrawing alliances and rewriting the rules of trade. Sovereign debt is piling up across Western economies, straining financial systems and impacting financial resilience, balance sheets and supply chains.

Meanwhile, new blocs are forming. CRINK – China, Russia, Iran, North Korea – is a growing challenge to Western dominance. The US-China rivalry is escalating across trade, finance, tech, and security. And Russia’s ongoing conflict in Ukraine continues to reshape Europe’s risk map, while hybrid threats – ranging from cyber-attacks to energy sabotage – are increasingly targeting critical infrastructure.

“At the same time, the war in the Middle East is deepening regional instability and influencing global energy markets, global supply chains and diplomatic alignments.

“This is fragmentation in real time. Fiscal policies are inconsistent, trade negotiations are divided, and the global economy is moving in unpredictable directions.”