Report: Cyber remains top business risk, but AI not far behind 

The corporate risk landscape in Asia Pacific has undergone a fundamental shift in 2026. While the physical disruption of supply chains dominated boardrooms in the post-pandemic years, the primary threats to business continuity have now migrated almost entirely to the digital realm. According to the latest Allianz Risk Barometer, Cyber incidents remain the most formidable challenge for companies in the region, but it is the meteoric rise of Artificial Intelligence that defines the new era of corporate vulnerability. 

For the fifth consecutive year, cybersecurity incidents have ranked as the top global risk. In Asia Pacific, this concern is particularly acute. The region accounted for 34 percent of global attacks in 2024, representing a 13 percent year-on-year increase. Despite this high threat level, the report highlights a worrying gap in financial protection. While large Asian conglomerates have improved their cyber resilience, overall insurance coverage remains lower than that of their American or European peers. A significant number of large organizations continue to rely on self-insurance strategies which leaves balance sheets exposed to the escalating costs of ransomware and data breaches. 

The most striking revelation in the 2026 report is the velocity at which Artificial Intelligence has climbed the hierarchy of fear. AI has jumped from the ninth position to become the second largest risk for businesses in Asia Pacific, capturing 32 percent of responses. This surge highlights the double-edged sword of technological adoption. Economies such as Singapore, India, and China are aggressively integrating Generative AI into core operations to manage costs and lift revenues. Yet this rapid integration brings complex operational, legal, and reputational risks. 

Allianz Commercial CEO Thomas Lillelund comments: “Following the volatility and uncertainty of 2025, businesses continue to face interconnected and highly complex risks in 2026’s fast-changing environment. Given the continuing rise of AI across society and industry, it is unsurprising that it is the big mover in the Allianz Risk Barometer. As well as bringing huge opportunities, its transformative potential and rapid evolution and adoption are also reshaping the risk landscape, making it a standout concern for firms of all sizes worldwide, alongside other more established threats.” 

The dominance of digital risks has reshuffled the traditional order of corporate concerns. For the first time in five years, Business Interruption has dropped out of the top two spots in Asia Pacific, settling at number three. However, this does not signal a return to stability. Instead, Business Interruption has evolved into a consequence of other volatile factors. Geopolitical friction and trade protectionism continue to fracture global commerce. The report notes that trade restrictions tripled in the past year alone, affecting an estimated US$2.7 trillion of merchandise. This has forced companies to explore “friendshoring” and regionalization, yet only 3 percent of respondents view their supply chains as truly resilient. 

Christian Sandric, Allianz Commercial President, Commercial, Asia Pacific, says, “The evolving risk landscape, particularly in the areas of cyber threats and the adoption of AI, pose new challenges to businesses in the region. With Asian economies playing a pivotal role in global and regional trade, the potential for business interruption also remains a significant concern. This volatile environment stresses the importance of resilience in a business’ supply chain, response measures, and risk management strategies to withstand and recover from disruptions.” 

Adding to this complexity is the persistent threat of Natural Catastrophes, which ranks fifth. The insurance gap in Asia remains high at over 80 percent, meaning that when climate-driven disasters strike, the economic toll is borne directly by businesses and governments rather than insurers. As 2026 unfolds, the message for Asian leadership is clear. Risk management can no longer be a reactive department. It must be a central pillar of strategy that accounts for a world where the code that runs a business is also its greatest liability.