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Allianz Highlights Top Business Risks for 2025

by Celia

Allianz has revealed the key business risks for 2025, with business interruption emerging as the top concern for companies in Asia, according to the latest Allianz Risk Barometer.

Cyber incidents, including data breaches and ransomware attacks, come in second, while natural catastrophes hold the third spot, following a year of significant disaster activity in 2024.

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“Given the increasingly volatile risk landscape, businesses must ensure they have comprehensive protection measures in place and robust response strategies,” said Christian Sandric, Regional Managing Director of Allianz Commercial Asia, in a statement. “This includes adopting loss prevention tactics, diversifying suppliers, and considering alternative risk transfer methods and multinational insurance policies.”

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Business Interruption: A Growing Concern Across Asia

In Asia, business interruption is the leading risk, topping the list in China, Hong Kong, Malaysia, Singapore, and South Korea. The primary driver of this concern is supply chain disruptions, which have become more frequent and complex. These disruptions are closely linked to the region’s expanded role in global trade and rising geopolitical tensions.

According to Allianz Trade, global trade disruptions occur on average every 1.4 years and can lead to economic losses of 5% to 10% of product costs.

Cyber Threats on the Rise

Cyber incidents have escalated, with a 23% year-on-year increase in weekly cyberattacks per organization recorded in the second quarter of 2024. Noteworthy cyberattacks include a distributed denial-of-service (DDoS) assault on Japan Airlines, a breach at the Singapore law firm Shook Lin & Bok, and an attack on India’s largest cryptocurrency exchange, WazirX.

Globally, data breaches have emerged as the most significant cyber threat, with more than 60% of survey respondents citing it as their primary concern.

Natural Catastrophes: A Continuing Threat

Natural catastrophes remain a prominent risk for businesses in Asia, driven by the growing frequency and intensity of climate-related events. In Japan, a magnitude 7.5 earthquake in the Noto Peninsula in 2024 led to insured losses of $3 billion and economic losses of $12 billion. Meanwhile, Hong Kong experienced its heaviest rainfall in 140 years due to Typhoon Haikui.

Globally, 2024 marked the fifth consecutive year with insured losses exceeding $100 billion, underscoring the ongoing impact of extreme weather events.

A Global Perspective on Business Risks

The Allianz Risk Barometer draws insights from over 3,700 risk management professionals across more than 100 countries. On a global scale, cyber incidents have ranked as the number one risk for the fourth consecutive year, cited by 38% of respondents, followed by business interruption at 31% and natural catastrophes at 29%.

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Vanessa Maxwell, Chief Underwriting Officer at Allianz Commercial, highlighted the increasing interconnection between the top risks. “Climate change, emerging technologies, regulation, and geopolitical factors are becoming more intertwined, creating a complex network of cause and effect,” she said. “Businesses need to take a holistic approach to risk management and continuously strengthen their resilience to address these evolving challenges.”

As companies face a rapidly changing risk landscape, experts stress the importance of adopting comprehensive, forward-looking strategies to mitigate these pressing threats.

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