A surge in political risk and tensions has resulted in geopolitical volatility entering Aon’s top ten global business concerns for the first time.
Aon’s ‘Global Risk Management Survey’, based on nearly 3,000 risk managers, C-suite leaders, and executives, revealed the most pressing risks for business decision-makers.
The top ten list of risks facing businesses in 2025 included business interruptions, economic slowdowns, regulatory changes, and damage to reputations. Not appearing on the list is a failure to attract and retain top talent; despite ranking fourth in 2023, it dropped out of the top ten.
From the implications of the ongoing Russia-Ukraine war to trade disputes and tariff wars led by US President Donald Trump, businesses have faced a slew of issues over recent years. Not surprisingly, geopolitical volatility has moved to the tenth spot on global business concerns, a 12-spot rise since 2023.
Just last month, it was reported that businesses have suffered losses in international projects and investments due to geopolitical and economic risks, which has driven interest in political risk insurance.
Geopolitical volatility ranks in fifth place in the top ten future risks by 2028.
“The dramatic rise of trade and geopolitical risk in our rankings highlights a new reality: global volatility and uncertainty are now constants in business,” said Joe Peiser, CEO of commercial risk for Aon.
Former UK Ambassador Alexandra Hall Hall stated: “Ever since Covid, and with the rise of Donald Trump and the threat from China, you see a lot of countries thinking we need to spread our bets. We need to have a wider source of suppliers. We can’t rely upon China. We can’t rely upon one country for the source of our medicines or critical drugs. So there’s a strategy of de-risking and onshoring.”
“From my own diplomatic experience, in every embassy I’ve served — most recently when I was ambassador in Georgia — the answer is you just have to plan. You have to have your plan A, your plan B, and your plan C,” she added.
Fears of cyber attacks
With the recent surge in cyberattacks targeting businesses across the UK, it’s not surprising that cybersecurity and data breaches continue to rank as the top current and future risks.
According to the survey respondents, the rapid adoption of digital platforms and AI technologies has expanded the attack surface for threat actors.
In the last six months, M&S, the Co-op, Harrods, Jaguar and major airports have been grappling with the financial implications of cyberattacks, after it was revealed that many did not have cyber insurance coverage.
Despite its top ranking in Aon’s survey, only 13 per cent of respondents said they have quantified their cyber exposure.
The problem lies in the knowledge gap about cyber insurance coverage, which can help businesses mitigate financial and reputational losses after an attack.
“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,” he added.