The worrying trend from the survey is that cyber risk is not even one of the top ten business risks, although SA companies have been affected before.
We all know that the South African economy has been battling for more than a decade now, and therefore, it is no surprise that the economic slowdown tops the list of risks for businesses in the country. But what matters is what we do about the risks.
Risk advisor and insurance company Aon’s 2025 edition of its Global Risk Management Survey reveals a mix of geopolitical risks are top of mind. The survey has tracked the most pressing risks for business decision-makers for nearly two decades.
Economic slowdown remains a main concern in South Africa, with 78% of respondents who suffered a loss as a result, while political risk climbed three places to the second most pressing risk for businesses, Clayton Ellary of Aon says.
“The rise of risks related to trade and geopolitical challenges reflects growing instability across regions, with implications for supply chains, regulatory environments and financial performance.
“Despite rising volatility, most organisations remain underprepared: only 14% of respondents track their exposure to the top ten risks and only 19% use analytics to evaluate the value of their insurance programmes. These findings underscore the urgent need for organisations to rethink their approach to risk, moving from reactive measures to proactive, integrated strategies.”
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Economic slowdown remains a business risk and affects balance sheets
Ellary says that the economic slowdown remains a top business risk for South African organisations, meaning volatility and uncertainty are now constants for organisations.
“From evolving global scenarios to shifting economic realities, these forces are converging and affecting balance sheets. Building resilience through analytics and scenario planning is essential for navigating this environment.”
These are the top ten risks for South Africa in 2025:
1. Economic slowdown/slow recovery
2. Political risk
3. Cash flow/liquidity risk
4. Business interruption
5. Increasing competition
6. Damage to reputation/brand
7. Property damage
8. Exchange rate fluctuation
9. Workforce shortage
10. Interest rate fluctuation.
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Why is economic slowdown or slow economic recovery at number one?
Trade tensions and geopolitical instability intensified significantly in the past two years, slowing economic growth and creating risks and uncertainty across several fronts for businesses, Ellary says.
“These trends place companies at a disadvantage, where they are often unable to use tactics they leaned on in more stable times. Consumer demand and business attitudes typically change, which can immediately affect revenue. At the same time, raising capital can become more expensive and difficult if market liquidity diminishes, drastically affecting profitability.”
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Economic slowdown or slow recovery is ranked as the number one risk facing South African businesses, with 78% of respondents saying that their organisations suffered a loss as a result. Yet only 35% of respondents assessed the risk, while only 25% developed a risk management plan to mitigate the risk, he says.
“Organisations can bolster their resilience and set themselves up for long-term success by remaining vigilant, strategic and focused on fundamental best practices. While economic slowdown is not an event that can be insured directly, the value of having an expert risk advisor in your corner who can provide data and analytical insights from a global and local perspective, will create a clearer picture of emerging technologies, trends, and risk management approaches to help organisations make better decisions.”
A troubling trend is cyber risk preparedness, and it is not even in SA’s top 10
Cyber risk topped the global risk agenda in this year’s global risk management survey, but dropped out of South Africa’s top ten entirely — despite digital threats evolving.
Zamani Ngidi, business unit manager for M&A and cyber solutions at Aon South Africa, says it is alarming to see cyber risk slip down the rankings when the challenges remain deeply connected to every aspect of business resilience.
“When you look at the top ten risks in this year’s survey, business interruption, as well as damage to reputation, can be a direct result of a cyber incident. Treating these risks as isolated issues creates blind spots for organisations.
“As AI [artificial intelligence] continues to transform how organisations operate, fundamentally shifting risk profiles, it is crucial for organisations to develop a strategic board-level response that integrates people, processes and technology to boost resilience in the face of rapid change. Quantification and risk transfer are vital tools to protect organisational value and ensure business continuity,” Ngidi says.
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Future risks reflect the growing influence of interconnected megatrends
Aon’s 2025 survey also provides a forward-looking perspective on the risks business leaders expect to be most critical by 2028. Cyber risk appears to make a return by 2028 while economic slowdown will remain a top risk alongside political risk.
These are the top six South African risks expected by 2028:
1. Economic slowdown/slow recovery
2. Political risk
3. Cash flow/liquidity risk
4. Increasing competition
5. Commodity price risk/scarcity of materials
6. Cyber-attacks/data breach
“All the risks in the current and future top risks for South Africa remain deeply entrenched in economic growth and stability, with many organisations deeply aware of the risk that political risk poses from both a local and global perspective. Success in this environment will go to those who embrace risk not just as a challenge to be managed but as a lever for growth,” Ellery says.
