Cyber risk tops Pacific business concerns amid growing climate threat

Cyber risk has emerged as the most significant concern for business leaders in the Pacific, as organisations navigate a challenging landscape of economic volatility and climate pressures, according to the latest findings from the 2025 Global Risk Management Survey by Aon.

The survey, which gathered feedback from nearly 3,000 risk managers, executives and C-suite leaders across 63 countries, including New Zealand and Australia, shows that cyber threats remain the top risk confronting Pacific organisations in 2025. Other risks climbing in priority include regulatory and legislative changes, economic slowdown, and damage to reputation or brand.

Top Pacific risks

According to the survey, the top 10 risks for Pacific businesses in 2025 are: Cyber Attacks and Data Breach; Regulatory or Legislative Changes; Economic Slowdown or Slow Recovery; Damage to Reputation or Brand; Business Interruption; Failure to Attract or Retain Top Talent; Cash Flow or Liquidity Risk; Weather or Natural Disasters; Supply Chain or Distribution Failure; and Increasing Competition.

Compared to previous survey results, regulatory and legislative changes, economic pressures, and reputational risks have all increased in concern. Meanwhile, workforce-related challenges have somewhat receded, with "Failure to Attract or Retain Top Talent" dropping four spots and falling outside the global top 10.

These trends suggest that Pacific organisations are grappling with the dual pressures of persistent cyber threats and changing economic conditions, requiring careful risk balancing and resilience strategies.

Cyber resilience priorities

The intensification of digital transformation and adoption of artificial intelligence has sharpened awareness of cyber threats. Businesses are shifting from largely reactive approaches to embedding cyber resilience as a key part of their overall strategy, including more structured quantification of risks and improved preparedness throughout the organisation.

"As cyber threats accelerate in scale and sophistication, businesses are challenged to anticipate - not just respond to - emerging risks," said Duncan Morrison, Cyber Practise Leader in New Zealand for Aon. "The organisations leading the way are those championing continuous innovation in cyber resilience, fostering agility in their risk strategies, and empowering their teams to make informed decisions that protect value and build trust in a digital-first economy."

Despite increased awareness, the report found that only a small share of organisations have quantified their cyber exposure, increasing vulnerability and leaving many underinsured. The survey advocates for adoption of structured AI risk governance and integrated cyber resilience frameworks.

Pacific organisations are demonstrating a proactive approach: 92.6 percent have formal plans for cyber risk, and 71.9 percent have board-level risk management oversight, both of which exceed global averages. Nevertheless, only just over half (52.4 percent) of respondents have formal mitigation plans for climate-related incidents, highlighting a need for further investment in climate resilience.

Angus McCullough, Head of Commercial Risk in New Zealand at Aon, commented: "Pacific businesses are facing a convergence of risks - from cyber threats and regulatory change to climate and economic pressures. Success in this environment requires integrated risk management and data-driven decision-making to build resilience and long-term growth."

Climate risk concerns

Climate and natural disaster risks remain very present for organisations in the Pacific, with a substantial 76.5 percent of respondents reporting losses associated with weather or natural disasters in the past year. This figure is notably higher than the global average, reflecting the region's exposure to extreme weather events and their operational impacts.

"The Pacific region has enjoyed relatively favourable conditions in recent years, but long-term weather trends ultimately shape insurance costs and financial performance," said James Knight, Head of APAC, View of Risk Advisory at Aon. "Building resilience into homes, businesses and infrastructure today is essential to withstand extreme weather events in the future."

Looking to 2028

Survey projections for 2028 highlight cyber attacks and data breach, economic slowdown, regulatory changes, increasing competition, and cash flow risk as the top anticipated risks.