A recent survey indicates that cybersecurity is the principal worry for companies, as per a study entitled ‘Risk in Focus 2025’ conducted by the Chartered Institute of Internal Auditors UK and Ireland. The study, which predicted the array of potential threats businesses may encounter in the future, revealed that 83 per cent of businesses regarded online safety as their primary worry, emphasising the importance of digital safeguards.
The institute’s CEO, Anne Kiem, voiced concerns over the speed of digital metamorphosis occurring globally, driven in part by the surge in artificial intelligence (AI). She highlighted that while this evolution opens doors for organisations, it simultaneously poses significant risk without appropriate protective measures.
The clear need for stronger online safety protocols can be seen in events such as the worldwide Crowdstrike failure earlier this year, and the Health Service Executive hacking incident in 2021, demonstrating that reliance on technology correlates with greater business susceptibility.
As stated by a representative of the chartered institute, AI, cybersecurity, and digital dangers are becoming the key concerns for businesses looking towards 2025 and beyond. He highlighted the emergence of AI as a vital business risk.
Besides digital-related concerns, the report also found that people management and staff retention ranked as second highest worry, with 52 per cent of participating companies listing it among their top five concerns.
An interesting revelation from the survey was the impact of digital disruption and the progression of AI as the fastest escalating category, moving from sixth to fourth position within a span of 12 months. Approximately 40 per cent of survey participants listed it among their top five risks, an increase from 33 per cent from the previous year.
The study also forecast that by 2028, due to evolving technologies and the influence of AI, 63 per cent of those surveyed predicted that these factors would be the second most significant business risks.
Furthermore, geopolitical instability was regarded as a top-five risk by almost 39 per cent of respondents, a concern primarily fuelled by the ongoing conflicts in Ukraine and the Middle East.
According to a survey in which 985 people from across 20 European nations participated, one-third voiced climate change as a significant concern. This lower proportion may potentially increase by 2028 due to obligations imposed by the European Union, such as the Corporate Social Responsibility Directive adopted in 2022. This regulation compels companies to furnish a report on environmental compliance for the fiscal year preceding January 1, 2025.
Simultaneously, business crisis control and changes to customer behaviour emerged as a shared worry amongst 32 per cent of the respondents, ranking in their top five risks. Other concerns like complications in the supply chain and insolvency risk were articulated by 29 per cent and 27 per cent, respectively.
The Risk in Focus paper is now in its ninth year, collating perspectives from 48 panellists throughout Europe.