Turning Uncertainty into Opportunity: Managing Risk in the EMEA Region

The EMEA region faces a uniquely complex risk environment. Geopolitical tensions, economic uncertainty and regulatory shifts are converging with rapid technological change and climate pressures. From the war in Ukraine to trade realignments, new tariffs, and AI-driven disruption, organizations are grappling with a volatile landscape that challenges traditional risk frameworks.

Yet amid the disruption lies opportunity. Organizations that rethink their approach to risk – treating it not as a compliance exercise but as a strategic lever – will be more resilient and adaptable. Notably, results from our survey indicate that only 15% of organizations in EMEA use analytics to optimize the value of their insurance program. This underscores a clear opportunity for many companies to harness data-driven insights to tailor coverage, align risk with capital, and build greater resilience.

Today’s Top Risks in EMEA: Facing Change on Many Fronts

Aon’s 2025 Global Risk Management Survey reveals the top risks facing EMEA organizations today. These risks are increasingly interconnected, requiring a holistic, forward-looking approach to resilience.

Top Current Risks Facing Organizations in EMEA

1. Cyber Attack or Data Breach
2. Business Interruption
3. Economic Slowdown or Slow Recovery
4. Commodity Price Risk or Scarcity of Materials
5. Geopolitical Volatility
6. Regulatory or Legislative Changes
7. Increasing Competition
8. Supply Chain or Distribution Failure
9. Damage to Reputation or Brand
10. Cash Flow or Liquidity Risk

Cyber and Business Interruption: A Converging Threat Landscape 

Cyber remains the number one risk in EMEA, and for good reason. The region faces a surge in ransomware, nation-state attacks, and supply chain vulnerabilities. Last year, a faulty update from CrowdStrike’s Falcon endpoint protection software triggered one of the largest IT outages in history, crashing millions of Windows systems globally. EMEA organizations were hit particularly hard, with widespread disruption across airlines, banks, retailers, manufacturers, and public services. While not a direct cyber attack, the outage exposed critical dependencies on centralized security infrastructure and revealed gaps in incident response planning, supply chain mapping, and operational resilience.

The EMEA region is particularly exposed due to its diverse regulatory landscape, varying levels of cyber maturity, and the increasing digitalization of critical infrastructure. Geopolitical tensions are amplifying cyber risks, with nation-state actors using proxy groups to target organizations and disrupt business. Sectors such as consumer and industrial products, manufacturing, and professional services are frequent targets, with attackers exploiting both legacy systems and new digital platforms.

The growing use of AI is also transforming the threat landscape, enabling more sophisticated attacks and increasing the speed and scale of cyber incidents. At the same time, evolving cyber and AI regulations are pressuring organizations to adapt to new disclosure rules and strengthen compliance to avoid fines and reputational damage.

Encouragingly, cyber maturity is rising. Clients are buying higher limits, supported by a softening market and improved analytics. However, the key to resilience lies in quantifying exposure to cyber risk and developing robust business continuity and incident response plans. Organizations that invest in regular cyber risk assessments, tabletop exercises, and cross-functional crisis management will be able to respond quickly and minimize operational downtime when an incident occurs.

Geopolitical Volatility and Supply Chain Disruption: A Region Under Pressure 

Geopolitical volatility surged into the top five risks for EMEA in 2025, reflecting the region’s exposure to multiple conflicts – including in Ukraine, the Middle East, and parts of Africa – as well as rising protectionism and regulatory divergence. These dynamics are directly disrupting supply chains, slowing export growth, and creating a new era of uncertainty for organizations across the region.

U.S. tariffs are also having a significant impact on EMEA businesses. Recent tariff increases on key EMEA exports such as steel, aluminum, and certain manufactured goods have forced organizations to rethink their trade strategies, seek alternative markets and absorb higher costs.

At the same time, Chinese trade policy is reshaping global flows. In response to escalating tariffs with the U.S., China is redirecting exports to Europe – particularly in sectors like steel and electronics – creating pricing pressure for EMEA manufacturers and prompting the EU to consider protective measures. These shifts are adding complexity to an already challenging trade environment, especially for exporters navigating both U.S. and Chinese policy changes.

The impacts of increased energy costs as a result of the war in Ukraine are still being felt, particularly in Europe, where companies continue to manage higher input costs and reassess sourcing strategies. Shipping disruptions in the Middle East, such as those in the Red Sea, have delayed goods and raised transportation costs, affecting retailers and manufacturers. In Africa, ongoing conflicts have disrupted mining and agricultural exports, further complicating global supply chains and contributing to commodity price volatility.

In response, many EMEA organizations are diversifying trade flows, broadening customer bases, and investing in local production capabilities to reduce reliance on single regions. Horizon scanning, scenario planning, and political risk insurance are also gaining traction as leaders seek to anticipate disruptions and protect revenue streams.

Regulatory and Legislative Change: A Shifting Compliance Landscape

Ranked sixth, regulatory change is a growing concern across EMEA. From AI governance to climate disclosure and pay transparency, the region is seeing a wave of new rules that demand greater agility and foresight.

The EU’s AI Act, for example, introduces strict requirements for high-risk AI systems, impacting sectors from healthcare to finance. The Corporate Sustainability Reporting Directive (CSRD) mandates detailed ESG disclosures, requiring organizations to collect, verify, and report a broader range of data than ever before. Pay transparency regulations are reshaping HR practices and compensation strategies across the region.

These regulations are reshaping compliance functions and increasing the cost of doing business. Organizations operating across multiple EMEA jurisdictions must navigate a patchwork of national and EU-level rules, often with tight implementation timelines and significant penalties for non-compliance. This is particularly challenging for multinational firms with complex supply chains and diverse workforces.

To stay ahead, organizations are embedding regulatory foresight into strategic planning, investing in compliance infrastructure and engaging with policymakers. Advanced analytics and digital compliance tools are helping businesses assess the operational impact of new rules and streamline reporting processes. Those that do will be better positioned to turn compliance into a source of trust and differentiation, rather than a cost burden.

What’s Next: Preparing for Future Challenges in EMEA

As EMEA organizations navigate today’s risks, they must also look ahead. The future risk landscape is evolving rapidly, shaped by technological disruption, climate change and shifting societal expectations, while traditional risks like cyber and economic slowdown remain prominent.

Top 10 Future Risks Facing Organizations in EMEA

1. Cyber Attack or Data Breach 
2. Economic Slowdown or Slow Recovery 
3. Geopolitical Volatility
4. Commodity Price Risk or Scarcity of Materials 
5. Increasing Competition 
6. Business Interruption 
7. Regulatory or Legislative Changes 
8. Artificial Intelligence (AI) 
9. Climate Change 
10. Cash Flow or Liquidity Risk

Increasing Competition and AI: Disruption at Speed

Competition is intensifying across EMEA, driven by a combination of AI-enabled disruption, cost pressures and fast-moving new entrants. Startups and established players alike are leveraging AI to accelerate innovation, automate processes, and deliver new products and services.

Disruption cycles are also getting faster. What once took decades can now happen in just a few years. Nowhere is this more evident than in the automotive sector, where Chinese electric vehicle manufacturers have rapidly overtaken many European brands, capturing market share through superior range, affordability and speed to market. This shift has forced traditional manufacturers to rethink their strategies and accelerate their own innovation cycles.

Geopolitical factors are also reshaping the competitive landscape. New and increased U.S. tariffs, shifting trade alliances, and regulatory divergence are prompting organizations to adapt their supply chains and seek new markets, while also facing heightened competition from non-traditional players.

Amid these challenges, there are significant opportunities. Organizations must adapt quickly, investing in digital infrastructure, workforce upskilling, and agile operating models to stay competitive. Those that can anticipate market shifts, embrace new technologies and respond proactively to geopolitical developments will be best positioned to thrive in this dynamic environment.

Talent Strategy: A Risk That Shouldn’t Be Overlooked

Despite its critical role in long-term resilience, talent risk has dropped out of the top ten in this survey’s EMEA rankings – a shift from our 2023 findings. Workforce shortage is now ranked 11, and failure to attract or retain talent sits at 12 – both displaced by rising concerns around geopolitical volatility and competitive pressure.

Yet in a risk landscape shaped by workforce disruption and evolving skill demands, organizations that deprioritize talent strategy may find themselves exposed. Building a resilient workforce remains essential to navigating volatility, sustaining innovation, and driving growth.

Taking Action: Three Ways to Strengthen Resilience

To thrive in this environment, EMEA organizations must move beyond risk awareness and mitigation, and embed resilience into strategy, operations, and capital decisions.

1. Use Data and Analytics to Inform Scenario Planning and Risk Capital Strategy

Advanced analytics are enabling more precise scenario and capital modeling. By quantifying exposures and understanding how risks unfold across the enterprise, leaders can evaluate trade-offs between retention and transfer. This allows the design of more resilient programs that also optimize capital allocation. 

2. Access Alternative Sources of Capital

Organizations across EMEA are increasingly turning to alternative risk transfer mechanisms such as captives, parametric solutions and structured solutions to access new sources of capital. These approaches can offer greater flexibility, cost efficiency, and enhanced control over risk financing, enabling businesses to tailor their risk management strategies to evolving exposures and market conditions.

3. Make Resilience a Strategic Priority

Resilience should be embedded into strategic planning and capital decisions, with active involvement from leadership. Organizations that prioritize risk management at the board level are better prepared to navigate uncertainty, respond to disruption, and capture new opportunities for growth and long-term value.

Why it Matters

EMEA organizations are operating in a world of accelerating change. Those that treat risk as a strategic capability will be better positioned to lead. By embedding resilience into every decision, they can navigate disruption, build trust, and create lasting impact.

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