Aon plc’s latest Global Risk Management Survey highlights a changing risk environment for organisations across Asia, with insurance professionals noting a marked shift in priorities for 2025.
The study, which compiled responses from nearly 3,000 risk managers and executives in 63 countries, indicates that companies in Asia are contending with a combination of intensifying competition, economic uncertainty, and persistent cyber threats.
Cyber incidents, including data breaches, continue to be the foremost concern for Asian businesses.
However, the survey reveals that “increasing competition” and “exchange rate fluctuation” have climbed significantly in the region’s risk rankings.
In particular, competition has moved into the top three risks for 2025, a notable rise from its eighth-place ranking in 2023. This shift reflects the region’s exposure to global market forces and the ongoing transformation of the business environment.
The survey data shows that more than half of Asian organisations experienced losses linked to exchange rate fluctuations.
Economic slowdown and increased competition also contributed to financial setbacks, with 45.4% and 43.6% of respondents, respectively, reporting related losses.
Talent management remains a challenge, as 30.4% of businesses cited difficulties in attracting and retaining skilled employees as a source of loss.
Terence Williams, head of commercial risk, APAC at Aon, said the survey results reflect significant changes underway in Asia’s business environment.
“Digitalisation, shifting economic currents, and increasing competition are reshaping priorities. Today’s challenges are more interconnected than ever – cyber threats can disrupt supply chains; economic volatility can impact talent retention, and climate events can trigger regulatory changes overnight,” he said.
Weather and natural disasters remain prominent concerns for the region, ranking eighth among the top risks.
This reflects Asia’s heightened vulnerability to climate-related events compared to other parts of the world.
The issue of talent attraction and retention, which rounds out the top 10, is unique to Asia and does not appear in the global top 10 risks.
Despite growing awareness, the survey indicates that risk management practices are not yet consistent across the region.
For cyber risk, only about a quarter of businesses have conducted risk assessments or developed management plans, and fewer have continuity plans in place.
Similar gaps exist for economic slowdown and talent retention risks, with less than a third of organisations having formal strategies to address these challenges.
Adam Peckman, global head of cyber risk consulting and head of cyber solutions for APAC at Aon, noted that ongoing disruption has become a constant feature of the business landscape.
“To mitigate the risks of cyber attacks and economic slowdown, organisations must move away from a reactive approach and instead embed cyber resilience and financial agility into their core strategies. This means adopting advanced analytics, scenario planning, robust continuity frameworks, and continually evaluating the role of risk capital to manage volatility,” he said.
The survey also provides insight into the risks expected to be most critical by 2028.
Increasing competition and cyber threats are projected to remain at the forefront, while geopolitical volatility is anticipated to become a top-five concern, signalling the growing complexity of the regional environment.
Williams added that organisations should consider predictive risk intelligence and resilient supply chains as part of their preparations.
He noted that innovative risk financing solutions, such as captives and parametric products, may play a larger role in future strategies.
“By focusing on both immediate disruptive threats and emerging risk trends, organisations can build resilience and unlock new opportunities in a rapidly evolving market,” Williams said.
The survey lists the following as the leading risks for Asian businesses in 2025:
The findings suggest that while awareness of risk is increasing, there is an ongoing need for Asian organisations to formalise and strengthen their risk management frameworks to support resilience and long-term growth.
