Cyber, business interruption and natural catastrophes are the risks that most concern businesses for the year ahead, according to the “Allianz Risk Barometer 2025." The survey, which polled nearly 4,000 risk management experts from around the world and has been conducted for 14 years, found that the top 10 business risks are increasingly complex and interdependent.

Also, new technologies, such as artificial intelligence (AI) developments, broke into the top 10 risks for the first time and extreme weather achieved its highest-ever ranking.

“What stands out in this year's Allianz Risk Barometer is the interconnectivity of the top risks," said Michael Bruch, global head of risk advisory services, Allianz Commercial. “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." 

Cyber solidified its rank as the No. 1 business peril for the third year in a row, at 38%. Among cyber exposures, companies are most concerned about data breaches for 2025, with 61% citing them as most concerning. Another 57% are most concerned about cyberattacks on critical infrastructure and physical assets.

“The growing significance of data breach losses among cyber insurance claims is driven by a number of notable trends," says Michael Daum, global head of cyber claims, Allianz Commercial. “A rise in ransomware attacks including data exfiltration is a consequence of changing attacker tactics and the growing interdependencies between organizations sharing ever more volumes of personal records."

“At the same time, the evolving regulatory and legal environment has brought an uptick in so-called 'non-attack' data privacy-related class action litigation, resulting from incidents such as wrongful collection and processing of personal data—the share of these claims has tripled in value in two years alone," Daum adds.

Closely related to cyber, business interruption remains a major concern for businesses globally, reflecting the persistent supply-chain disruption during the coronavirus pandemic. Among business interruption exposures, cyber incidents and natural catastrophes are the two most feared incidents by companies.

Additionally, reliance on technology to coordinate massive, efficient supply-chain operations has caused a trend in disruptions or failures to be more severe. Businesses should implement comprehensive, diverse and adaptable business continuity plans that are not overly dependent on technology, the report said.

The third most concerning risk, natural catastrophes, retained its ranking from 2024. In 2024, insured losses from natural catastrophes surpassed the $100 billion mark, according to Swiss Re, with Hurricane Helene wreaking havoc on the unprepared Southeast and other severe storms driving U.S. losses. In 2025 so far, insured losses from the Los Angeles wildfires—still currently burning—are estimated as high as $40 billion.

“Extreme weather events like floods and droughts are expected to become more severe and frequent," says Mabé Villar Vega, senior catastrophe risk research analyst, Allianz Commercial. “Rapid urbanization and significant changes in land use further contribute to increasing losses. Therefore, it becomes essential to plan and invest in resilience measures to mitigate the effects of a changing climate."

Changes in legislation and regulation, the No. 4 risk, drew more attention in the 2025 barometer, which the report attributed to regulatory developments for sustainability and new technology. Climate change climbed two places from the year before to reach No. 5. Fire and explosion, macroeconomic developments, market developments, political risk and violence, and new technologies round out the top 10 business concerns.

AnneMarie McPherson Spears is IA news editor.