New Allianz report highlights top business risks for 2025

Cyber incidents, business interruption and natural catastrophes are the top concerns for businesses according to the Allianz Risk Barometer 2025, which looks at the top 10 risks for the year.

Not surprisingly, cyber risks held the top spot for the fourth year in a row. With ransomware attacks still on the rise and incidents like the CrowdStrike attack, businesses are well aware of the chaos and financial impact that can result from a cyberattack. According to the report, it was also identified as the top risk in eight industries: Aviation, chemicals, entertainment, financial services, media, professional services, technology, and telecommunications.

These attacks can often lead to the number two risk that executives identified: Business interruption, which has appeared in the top two risks for the last 10 years. Business interruptions from cyberattacks or natural disasters have the ability to disrupt everything from payment processes to supply chains and were identified as a top risk in 11 industries: Consumer goods, entertainment, food and beverages, heavy industry, hospitality, manufacturing (both automotive and other), oil and gas, power and utilities, renewable energy, and transportation and logistics.

Rounding out the top three risks were natural catastrophes, which have proven to be an issue around the globe and moved up two places this year. As the frequency and intensity of weather risks increase, businesses are seeing the financial impact on their operations.

"What stands out in this year's Allianz Risk Barometer is the interconnectivity of the top risks," says Michael Bruch, global head of risk advisory services for Allianz Commercial in the report."A change in one – or indeed a mitigating action – might have a knock-on effect on another, and another. Climate change, emerging technology, regulation and geopolitical risks are increasingly intertwined, resulting in a complex network of cause and effect."

Legislation, climate change & political risks create concerns

The other risks identified by the Risk Barometer were: Changes in legislation and regulation, climate change, fires & explosions, macroeconomic developments, market developments, political risks and violence, and new technologies.

Climate change risks moved up two positions from last year to become one of the top five risks concerning businesses. As these risks continue to grow, so do the financial implications for companies. Higher temperatures, more and stronger hurricanes, and flooding across the U.S., Canada and Europe are creating billions in losses.

"What we are seeing is a complex picture of climate change linked to natural disasters and physical hazards," said Mabé Villar Vega, senior catastrophe risk research analyst for Allianz Commercial in the report. "For example, hurricane Beryl in 2024 was the first Category 4 storm to form in June, and the earliest forming Category five on record. Climate change has also exacerbated the effects of the extreme flooding that hit southern Spain last year."

"Combating climate change is the biggest challenge for society, according to Daniel Muller, emerging risks and trends manager, Allianz Commercial in the report. "Every action we take has an impact. To reduce greenhouse gas emissions, we must collectively change our behaviors, such as reducing waste, conserving energy, and adopting sustainable practices."