Allianz Risk Barometer 2026: Cyber Remains Top Business Risk but AI Fastest Riser at #2

Core Insights - Cyber incidents remain the top global risk for companies in 2026, marking the fifth consecutive year at this position with a record score of 42% of responses, reflecting a 10% increase from the previous year [6][10] - The rapid adoption of artificial intelligence (AI) has propelled it to the second position in the risk rankings, with 32% of respondents identifying it as a significant concern, up from 10th place in 2025 [8][9] - Business interruption has dropped to the third position, indicating a shift in risk perception, although it remains a significant concern due to its connection with other risks [2][10] Cyber Risks - Cyber incidents are the primary concern across all regions, driven by increasing reliance on digital technology and evolving cyber threats [6][7] - Smaller and mid-sized enterprises are particularly vulnerable due to limited cybersecurity resources, while larger companies are investing in cybersecurity measures [7] - The evolving nature of cyber risks is compounded by reliance on third-party providers and the increasing threat landscape introduced by AI [7] Artificial Intelligence Risks - AI has emerged as a complex source of operational, legal, and reputational risks, with companies recognizing both its strategic opportunities and potential liabilities [9] - The rapid integration of AI into business operations is outpacing governance and regulatory frameworks, leading to heightened exposure to system reliability and data quality issues [9] - Concerns regarding automated decision-making and potential biases in AI models are becoming more pronounced as organizations scale their AI capabilities [9] Business Interruption and Geopolitical Risks - Business interruption is closely linked to geopolitical risks, with rising protectionist policies and regional conflicts contributing to uncertainty in global supply chains [10][11] - Political risks and violence have climbed to the seventh position in the risk rankings, reflecting growing concerns over geopolitical volatility [3][11] - Trade restrictions have significantly increased, affecting an estimated $2.7 trillion of merchandise, which is nearly 20% of global imports, prompting companies to explore alternative supply chain strategies [10]