Cyber risks, regulation & talent shortages top 2025 concerns
The most significant risks facing Australian businesses in 2025 are cyber threats, regulatory changes and talent shortages, according to the Australian results of a new global survey from Aon.
The Global Risk Management Survey, which reflects the input of nearly 3,000 risk professionals across 63 countries, identifies that Australian organisations are confronted with a complex landscape shaped by ongoing workforce challenges, financial volatility and the impact of increasingly severe weather events.
Cyber threats in focus
Australian businesses have ranked cyber attacks and data breaches as their leading risk, in alignment with the worldwide findings. The survey shows that 93 per cent of Australian respondents report having structured review processes for cyber risk, noted as one of the highest adoption rates globally.
Cyber threats are no longer confined to data breaches - they have evolved into systemic business risks that can disrupt operations, supply chains and reputations. Quantifying cyber exposure through analytics gives organisations the visibility to prioritise investments, reduce loss potential and strengthen resilience at an enterprise level.
This perspective was shared by Adam Peckman, Global Head of Cyber Risk Consulting and Head of Cyber Solutions for APAC at Aon.
Regulatory change remains a pressure
The report highlights that regulatory and legislative changes have remained in the local top risk rankings for two decades. This reflects the constant challenge of responding to shifting regulations and increased scrutiny, particularly in sectors such as financial services, technology and energy.
The top ten business risks for Australia in 2025 are ranked as follows: Cyber Attacks/Data Breach; Regulatory/Legislative Changes; Damage to Reputation/Brand; Economic Slowdown/Slow Recovery; Business Interruption; Failure to Attract or Retain Top Talent; Cash Flow/Liquidity Risk; Weather/Natural Disasters; Workforce Shortage; and Supply Chain or Distribution Failure.
Distinctive Australian trends
The findings point to unique risk trends in Australia compared to global results. For the first time, "Weather and Natural Disasters" has entered Australia's top ten risks, occupying the eighth position. Losses resulting from weather-related incidents were reported by 79 per cent of Australian businesses, the highest proportion for any risk category in the local data.
Talent issues are also pronounced in Australia. Despite falling out of the top ten globally, "Failure to Attract or Retain Top Talent" and "Workforce Shortage" remain sixth and ninth respectively on the Australian risk list. This highlights the ongoing difficulties in sourcing and retaining skilled talent, especially in the healthcare, infrastructure and advanced manufacturing sectors.
Australia's tight labour market and ageing workforce are creating long-term skills gaps across key industries. Businesses are now viewing workforce resilience as a core component of enterprise risk management, linking talent attraction and retention strategies to performance and continuity outcomes.
This comment from Simon Kennedy, Managing Director for Human Capital, Pacific, at Aon, underscores the strategic focus many organisations are placing on workforce planning and resilience.
Divergence from global trends
The risk of geopolitical volatility, which entered the global top ten for the first time, was not identified in Australia's local top ten. This position suggests a different risk outlook for Australian businesses compared to their counterparts in other regions.
Australian organisations are redefining resilience as they face converging risks - from cyber threats and regulatory uncertainty to workforce and climate challenges. The survey shows a shift towards more integrated risk management, linking resilience planning with strategy, workforce and capital decisions.
Kevan Johnston, CEO of Aon in Australia, emphasised the increasingly integrated approach to risk and resilience management among Australian firms.
Outlook to 2028
Looking towards 2028, Aon's survey indicates that the top five risks anticipated by Australian businesses are: Cyber Attacks/Data Breach; Regulatory/Legislative Changes; Economic Slowdown/Slow Recovery; Workforce Shortage; and, in a tie, Cash Flow/Liquidity Risk and Increasing Competition.
