Cybersecurity is the most pressing concern for businesses today, according to a new survey.
The Risk in Focus 2025 report by the Chartered Institute of Internal Auditors UK and Ireland found about 83 per cent of firms rated cyber issues as their chief concern. The report reviews various risks companies face in the future, with many of the findings focused on the need for digital controls.
Chartered institute chief executive Anne Kiem said the rise of artificial intelligence (AI) “underscores the unprecedented pace of digital transformation that is happening around us”. While this process presents opportunities for businesses it also poses a threat if there are no safeguards in place, she continued.
Incidents such as the global Crowdstrike outage earlier this year and the Health Service Executive cyberattack in 2021 show that growing dependency on technology is accompanied by bigger risks to companies.
A chartered institute spokesman said AI, cybersecurity and digital threats are dominating business risks for 2025 and into the future. He also emphasised the rise in AI as a “business-critical risk”.
Outside of a digital focus, the report found that managing people and retaining employees came in second place in the survey with 52 per cent of respondents putting it in their top five concerns.
The impact of digital disruption and the rise of AI was the fastest-rising category in the survey, jumping from sixth to fourth place in the space of a year. Some 40 per cent of respondents said it was a top-five risk, up from 33 per cent a year ago.
Should Ireland give the Apple tax billions to poorer countries?
According to the survey, by 2028, 63 per cent of respondents expect AI and new technologies to be the second biggest risk to businesses.
Some 39 per cent of respondents see geopolitical uncertainty as a top-five risk, driven mostly by the Middle East conflict and Ukraine war.
Climate change was a concern for 33 per cent of respondents. Despite the lower percentage, pressure from the European Union rules such as the Corporate Social Responsibility Directive may raise this by 2028. The directive, passed in 2022, mandates companies to submit an environmental compliance report by January, 1st 2025, for the previous financial year.
Business crisis management and changes to consumer behaviour were also mentioned as a top-five risk for 32 per cent of respondents. Problems with supply chain and insolvency risks were mentioned by 29 per cent and 27 per cent of participants, respectively.
The survey comprised 985 responses from 48 participants across 20 European countries. This is the ninth year of the Risk in Focus reports.
- Sign up for the Business Today newsletter and get the latest business news and commentary in your inbox every weekday morning
- Opt in to Business push alerts and have the best news, analysis and comment delivered directly to your phone
- Join The Irish Times on WhatsApp and stay up to date
- Our Inside Business podcast is published weekly – Find the latest episode here
