Political instability biggest risk for businesses, report finds
Eve Goode
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Political instability has overtaken extreme weather as the biggest risk concern for businesses, according to a new survey from global security and healthcare risk management business, Healix.
Shifting alliances and growing divisions within the geopolitical landscape have contributed to 96% of those responding to the survey revealing their belief that the world is a more dangerous place.
The survey, which asked respondents to look at the risks they are most concerned about, identified the top three biggest concerns as:
- Political instability (35%)
- Pandemic and disease (34%)
- Governance, regulations and sanctions (32%)
This is a contrast to last year’s Healix report, when 43% of respondents said extreme weather would pose the biggest risk to operations by 2030.
Risk factors impacting operations
The Russia-Ukraine conflict ranks as the top risk factor impacting operations in 2025, closely followed by the result of US election as businesses face issues related to supply chain disruption, increased protectionism and volatile commodity prices.
The survey also reveals a lack of confidence among businesses when it comes to risk preparedness with 58% of respondents giving their organisations a rating of either ‘not very resilient’ or only ‘somewhat resilient’.
More than half of respondents (56%) also expressed limited confidence in their ability to endure a major disruption.
“Resilience against the unexpected”
General Sir Richard Shirreff, Chair, Healix Risk and Security Advisory Board said: “Trust amongst the global community is eroding and as ever with geopolitical issues, no quick fix is apparent.
“The international order is shifting beneath our feet, creating a volatile environment that will test the resilience of even the most experienced business leaders.
“As the global order continues to fragment, businesses face a future where volatility and unpredictability are the new normal, forcing them to rethink their risk management strategies and how to build resilience against the unexpected.”
“Risk preparedness as a key priority”
James Henderson, CEO, Healix International, commented on the results of the ‘Risk Radar Report for 2025’ and said: “As the business community continues to face a myriad of challenges due to an increasingly difficult global security environment, it’s imperative that business leaders view risk preparedness as a key priority for 2025.
“The report revealed a lack of confidence when it came to resilience, which is concerning.
“Business continuity relies on risk managers monitoring the risk environment, crisis management planning and training and the mitigation of risks to staff at home and abroad.”
Henderson concluded: “By focusing on proactive measures and clear communication, organisations can mitigate fear-based responses and build a more informed, resilient approach to risk.”
Helping businesses
Healix’s Risk Radar Report 2025 also looks at other factors that could help businesses develop better risk management solutions, as well as the biggest risks identified by respondents across markets, including the Middle East and North Africa, Europe and CIS, the Americas, Asia Pacific and Africa.
It offers informed and professional advice, including from members of Healix’s Risk and Security Advisory Board, on the steps businesses should be putting into place immediately.
To read and download the full report, please visit: https://healix.com/insights/publications/risk-radar-2025-report-download
