What are the main risks in supply chain and logistics?
Global financial services company Allianz provides us with solid data in their yearly Risk Barometer published at the beginning of every year. In the 2025 edition, cyber, business interruption and natural catastrophes were the first risks of concern for businesses globally. Their study surveyed 3,778 companies from 106 countries. With a larger proportion than ever before (38 per cent), cyber incidents consolidated its position as the most important risk, while a related one made its entry in the top 10 at number 10: the risk impact of new technologies and developments in artificial intelligence. Closely linked to cyber, business interruption ranked second (31 per cent), just ahead of natural catastrophes at number three (29 per cent). Climate change was another standout result, the bigger mover in the top 10 risks globally, climbing two places to number five (19 per cent), achieving its highest ever position in the survey. Changes in legislation and regulations also drew a bigger response this year, retaining number four globally (25 per cent).
The survey’s findings specific to Canada show similar concerns in a slightly different order. Business interruption came first at 38 per cent, natural catastrophes, including extreme weather events, came second at 37 per cent, cyber risks came third at 35 per cent and climate change, for example disruptions resulting from global warming, came fourth at 23 per cent. They are followed by change in legislation and regulation in fifth position, equally with shortage of skilled workforce (both at 19 per cent), fire and explosion (16 per cent), macroeconomic developments (15 per cent) and critical infrastructure blackouts or failures (11 per cent).
Recent disruption
Recent history taught us lessons on dealing with business interruption, including disruptions caused by the COVID-19 pandemic. Then we learnt that, from an operational viewpoint, successful companies need flexibility, creativity, social responsibility, and ample resources to stay in business. From a more basic risk management, financial point of view, companies that had purchased business interruption insurance, fared better that those that hadn’t. Business interruption insurance compensates businesses from losses derived from unexpected disruptions and can cover lost income, rent or payroll when outside, unforeseen events force a business to temporarily close. Of course, this has costs and it’s impossible to know with certainty if the benefits will outweigh them.
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