Business interruption is the biggest worry for Asian companies in 2025, a new report finds.

It ranks in the top three risks in all countries and territories, and is the top risk in mainland China and Hong Kong, Malaysia, Singapore, and South Korea, according to the 14th Allianz Risk Barometer. Its persistence at the top reflects severe supply chain disruptions during and after the pandemic.

The annual corporate risk survey by Allianz Commercial seeks to identify the most important corporate concerns for the year ahead, as ranked by over 3,700 risk management experts from more than 100 countries and territories.

Cyber incidents such as data breaches or ransomware attacks, and IT disruptions, such as the CrowdStrike incident, are also a main concern for companies of all sizes, ranking No. 2 in Asia.

( The CrowdStrike incident refers to massive IT outage that occurred last July 19, when about 8.5 million computer systems crashed after US cybersecurity firm CrowdStrike distributed a defective update to its Falcon Sensor security software. Affected were Microsoft Windows computers using the software. )

Natural catastrophes rank No. 3 in Asia. For the fifth consecutive year, insured losses due to natural catastrophes surpassed the US$100 billion mark in 2024, according to the report.

Business interruption

Business interruption ( BI ) is identified as the top risk in 11 industries: consumer goods, entertainment, food and beverages, heavy industry, hospitality, manufacturing, oil and gas, power and utilities, renewable energy, and transportation and logistics.

The impact of a cyber incident or a natural catastrophe is the business interruption exposure corporates fear most, the report says.

"Business interruption is the most significant risk for companies in the region and this is no surprise as Asian economies are increasingly participating in trade globally and regionally,” says Christian Sandric, regional managing director of Allianz Commercial Asia.

Moreover, due to rising US-China tensions, bilateral trade between geopolitically aligned countries has risen. Global trade flows are becoming more intricate and this shift has opened doors for nations like India and Malaysia to step up as next-generation trade hubs, according to Allianz Trade.

Business interruption “is also often due to events like cyber incidents or natural catastrophes, which are part of the top risks in the region. Against this backdrop of an increasingly volatile risk landscape, businesses should ensure they are sufficiently protected and their response measures robust. This includes adopting measures such as loss prevention, developing multiple suppliers, alternative risk transfer, and multinational insurance policies," Sandric adds.

Globally, BI has ranked either No. 1 or No. 2 in every Allianz Risk Barometer survey for the past decade and retains its position at No. 2 in 2025 with 31% of responses.

Supply chain disruptions with global effects occur approximately every 1.4 years, and the trend is rising, according to an analysis from Circular Republic, in collaboration with Allianz and others. Such disruptions cause major economic damages, ranging up to 5% to 10% of product costs and additional downtime impacts.

Cyber incidents

Meanwhile, cyber risks continue to increase with rapid development of technology. Cyber incidents rank No. 2 in Asia; it is the top risk in India for the eighth consecutive year, and the second most significant risk in Japan and Singapore.

The Asia Pacific region saw a 23% increase in weekly cyberattacks per organization in Q2 2024, compared to the same period in 2023. Some of the cyber incidents around the region include the attack on India's biggest crypto exchange WazirX, the distributed denial-of-service ( DDoS ) attack on Japan Airlines, and cyberattack on Singapore law firm Shook Lin & Bok.

Globally, cyber incidents ( 38% of overall responses ) rank as the most important risk for the fourth year in a row – and by a higher margin than ever ( 7% points ). It is the top peril in 20 countries, including Argentina, France, Germany, India, South Africa, the UK and the US. More than 60% of respondents identified data breaches as the cyber exposure companies fear most, followed by attacks on critical infrastructure and physical assets with 57%.

Natural catastrophes

Natural catastrophes retain its No. 3 spot in Asia. The region is heating up faster than the global average, with increased casualties and economic losses from floods, storms, and more severe heatwaves.

It is the top risk in Japan, which faced a magnitude 7.5 earthquake on the Noto Peninsula that resulted in insured losses of US$3 billion, with economic losses reaching US$12 billion, as well as in Hong Kong, which experienced its heaviest rain in November 2024 since records began 140 years ago due to Typhoon Haikui.

Allianz commercial chief underwriting officer Vanessa Maxwell comments: “What stands out this year is the interconnectivity of the top risks. Climate change, emerging technology, regulation and geopolitical risks are increasingly intertwined, resulting in a complex network of cause and effect. Businesses need to adopt a holistic approach to risk management and consistently strive to enhance their resilience in order to address these fast-evolving risks."