Cyber attacks and data breaches have risen to the top of the risk agenda for Australian businesses, accompanied by evolving regulation, reputation damage and ongoing talent challenges, according to Aon plc’s 2025 Global Risk Management Survey.
The organisation gathered insights from nearly 3,000 risk managers, executives and C-suite leaders across 63 countries for the tenth edition of the popular survey, to find out how businesses are navigating an increasingly complex environment.
Mirroring global trends, the survey placed cyber attacks and data breaches as the number one risk locally, with almost all Australian respondents (93 percent) reporting structured review processes – one of the highest rates globally.
Global Head of Cyber Risk Consulting and Head of Cyber Solutions for APAC at Aon, Adam Peckman, said cyber threats are no longer confined to data breaches.
“They have evolved into systemic business risks that can disrupt operations, supply chains and reputations,” he said.
“Quantifying cyber exposure through analytics gives organisations the visibility to prioritise investments, reduce loss potential and strengthen resilience at an enterprise level.”
Featuring at the top of the list for two decades, regulatory and legislative change sits in second place, reflecting the ongoing challenge of operating amid shifting regulatory regimes and heightened scrutiny, particularly in sectors such as financial services, technology and energy.
The survey also reveals distinctive workforce risks in Australia, with failure to attract or retain top talent ranked sixth and workforce shortage ranked ninth, both of which have dropped out of the global top 10 completely.
This reflects challenges noted in CIPS Procurement & Supply Salary Guide 2025, which revealed two-thirds (66 percent) of employers have struggled to find the right talent in the past 12 months.
“Australia’s tight labour market and ageing workforce are creating long-term skills gaps across key industries,” said Simon Kennedy, Managing Director for Human Capital, Pacific, at Aon.
“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.”
Entering Australia’s top 10 for the first time, weather and natural disasters ranked at number eight, which again is exclusive to local findings, failing completely to make the top 10 globally.
Over three-quarters of Australian businesses (79 percent) reported losses from weather-related incidents – such as bushfires, flooding and cyclones – which is the highest proportion for any risk in the Australian survey results.
On the flip side, geopolitical volatility failed to make the Australian top 10, despite featuring in the global top 10 for the first time.
Remaining challenges and risks include damage to reputation (three), economic slowdown/slow recovery (four), business interruption (five), liquidity risk (seven) and supply chain or distribution failure (ten).
Looking ahead, Aon predicts Australia’s top five business risks by 2028 will include cyber threats, regulatory changes, economic slowdown and workforce shortages, while cash flow/liquidity risk and increasing competition tie in fifth place.
“Australian organisations are redefining resilience as they face converging risks – from cyber threats and regulatory uncertainty to workforce and climate challenges,” added Kevan Johnston, CEO of Australia for Aon.
“The survey shows a shift towards more integrated risk management, linking resilience planning with strategy, workforce and capital decisions.”
