Cyber once again ranked as the top global risk in 2026, according to the latest Allianz Risk Barometer, coming in No. 1 in every region and across all company sizes.

Artificial intelligence took the No. 2 spot, up from tenth in 2025—the biggest jump in this year’s ranking. Both cyber and AI now rank as top five concerns for companies in almost every industry sector.

Respondents to the corporate risk survey also named business interruption, changes in legislation/regulation, climate change and geopolitical risks among their top concerns in 2026.

Cyber was named the top global risk for the fifth year in a row, with its highest-ever score (42% of responses). Cyber ranks as the main corporate concern in every region (Americas, Asia Pacific, Europe, and Africa and Middle East) surveyed in the Allianz Risk Barometer and is again ranked as the top risk for large (>$500 million annual revenues), mid-sized ($100 million to $500 million) and smaller companies (<$100 million).

The risk covers cyber attacks (including data breaches and malware/ransomware), IT network and service disruptions, as well as associated fines and penalties.

Allianz said that growing reliance on a small number of third-party suppliers in areas like cloud services, software as a service, AI solutions and data processing is particularly concerning, noting that several attacks and outages over the past 12 months have caused significant disruption to businesses, their supply chains, customers and the wider economy.

“Digital infrastructure and technology are now critical to all businesses and their supply chains. Complex interconnected systems exist within organizations, third-party suppliers and customers. As we have seen with recent incidents, a cloud outage, technical glitch or malicious attack can have huge implications for a business’s ability to produce and sell its goods and services, with the effects rippling through supply chains,” said Rishi Baviskar, Global Head of Cyber Risk Consulting at Allianz Commercial.

Artificial intelligence climbed to No. 2 (32% of responses) in this year’s Risk Barometer—its highest-ever position, up from No. 10 in 2025.

Allianz said that AI’s rapid climb up the rankings this year reflects both the risks associated with AI as well as its potential societal, political and economic implications. The risk is interlinked with other key risks in the top 10, Allianz said, including cyber, political risk, macroeconomic and market developments, and changes in legislation and regulation.

“Companies increasingly see AI not only as a powerful strategic opportunity, but also as a complex source of operational, legal, and reputational risk. In many cases, adoption is moving faster than governance, regulation, and workforce readiness can keep up—pushing AI into the top tier of global risks for the first time,” said Ludovic Subran, Chief Economist, Allianz.

Organizations are becoming more aware of the challenges that come with AI implementation, such as data-quality constraints, integration hurdles and a shortage of AI-skilled talent. New liability exposures are emerging around automated decision-making, biased or discriminatory models, intellectual-property misuse, and uncertainty over who is responsible when AI-generated outputs cause harm. Respondents also cited disinformation and the potential for deepfakes as growing risks.

Education, retraining and upskilling initiatives are the main actions being taken by companies to mitigate the impact of increasing AI adoption on the workforce (49% of respondents). Some companies are looking to reshape roles to focus on adaptability and collaborative problem solving (45%), while others say they are eliminating low-skilled roles and replacing them with high-skilled ones (40%).

Asked about the most plausible “black swan” scenarios that could occur in the next five years, 19% of respondents said they fear a breakthrough in quantum computing that renders current encryption obsolete.

Business interruption dropped to the third spot in 2026 (29%) after having ranked either No. 1 or 2 for the last decade. Allianz said the peril remains a significant concern since supply chains can be impacted by other risks in the global top 10, such as cyber, climate change, trade policies and geopolitical conflict.

Allianz noted that 2025 saw a shift toward protectionist trade policies and tariff wars, bringing uncertainty to the world economy. There were also regional conflicts in the Middle East and Russia/Ukraine, as well as border disputes between India/Pakistan and Thailand/Cambodia, and civil wars in Sudan, Ethiopia and Myanmar.

Global supply chain paralysis due to a geopolitical conflict ranked as the most plausible “black swan” scenario likely to materialize for business interruption in the next five years (51%), according to respondents. Mass social unrest and political instability impacting business continuity ranks No. 4 (29%).

Despite the rising pressure from geopolitical risks, only 3% of survey respondents view their supply chains as “very resilient.”

Half of respondents said they are exploring new markets and products; 49% are renegotiating and diversifying supply chains, while a similar number said they are streamlining operations to cut costs, and/or investing in advanced analytics and supply chain management software. Just over a third (35%) are exploring nearshoring and evaluating domestic manufacturing options.

Changes in legislation and regulation remained at No. 4 for the third year in a row, with 26% of respondents picking it as a top risk.

Allianz said that divergence is the defining regulatory risk of 2026, with major jurisdictions moving in different directions when it comes to digital/AI, prudential and sustainability rules.

The U.S. is pushing for deregulation aimed at lowering business costs and boosting competitiveness, Allianz said. Europe is trying to simplify regulation while maintaining its long-standing commitment to robust rules and safety. Meanwhile, China is trying to foster innovation while preserving state oversight and strategic control of key sectors.

“This divergence is fast becoming a critical driver of global risk: it fragments compliance expectations, reshapes competitiveness, and increases uncertainty at a time of geopolitical, technological, and financial volatility,” said Subran.

Natural catastrophes dropped two places on the Allianz Risk Barometer, coming in at No. 5 (21%) globally after two years in the third spot, driven by factors such as a quieter hurricane season last year.

However, Allianz noted that insured losses caused by catastrophe events still hit $100 billion for the sixth year in a row. A good chunk of that loss came from the January 2025 Palisades and Eaton wildfires in California, which took place outside the traditional fire season and spread quickly in urban areas, incurring insured losses of $40 billion, according to Swiss Re.

So-called “secondary” or non-peak perils—such as flooding, severe thunderstorms and wildfires—continue to drive substantial losses. “These events demonstrate that losses from perils once considered secondary are now comparable to traditional ‘peak’ risks, with climate change amplifying both their frequency and severity,” said Keerthy Mohandas, Catastrophe Risk Research Analyst, Allianz Commercial. “This blurring of lines between primary and secondary perils underscores the need for insurers and reinsurers to integrate emerging hazards into their nat cat risk assessment, capital planning, and resilience strategies.”

Speaking of climate change, the risk came in at No. 6 this year (19%), falling from the fifth spot in 2025.

The impact on business interruption risks, such as supply chain bottlenecks and disruption of logistics due to extreme weather events, is the main climate-related business concern for 63% of respondents, according to Allianz.

Respondents were also concerned about the physical impacts of climate change, such as damage to production sites due to extreme weather events (57%), as well as environmental risks (40%) like rising sea levels and higher temperatures that could affect food production.

Political risks and violence climbed to an all-time high in 2026, coming in at No. 7 in this year’s Risk Barometer (15%) compared to No. 9 in 2025.

Top fears in this category include war perils (53%, up from 48% in 2025), civil unrest threats (49%), and terrorism and sabotage (46%).

“Shifting global alliances and economic realignment; war in Ukraine; tariff wars; rising xenophobia and anti-immigration protests in Europe; decreasing trust in governments; and the deepening economic crisis globally—it is not hard to see why political risk and violence perils have risen sharply over the last 12 months and are front of mind for risk industry professionals,” said Srdjan Todorovic, Global Head of Political Violence and Hostile Environment Solutions at Allianz Commercial.

Macroeconomic developments took the No. 8 spot (14%), down from No. 7 in 2025. Allianz said that global momentum will increasingly be shaped by forces such as trade and migration constraints, the rapid acceleration of AI, and a comeback of industrial policy. The firm also said it expects 2026 will mark a fifth consecutive rise in global business insolvencies.

Fire, explosion dropped to No. 9 (13%) after holding the No. 6 spot in both 2024 and 2025. Fire remains a significant cause of business interruption and supply chain disruption, especially where critical components such as semiconductor chips or automotive components are concentrated geographically or are among a small number of suppliers, Allianz said.

Taking the final spot in the Top 10 was market developments (13%), down two from No. 8 in 2025. Allianz said businesses appear slightly more relaxed about market risks after another strong year for equity and M&A markets. However, there is concern about the potential for an emerging AI bubble.

Methodology:

The 15th Allianz Risk Barometer incorporates the views of 3,338 respondents from 97 countries and territories. The annual corporate risk survey was conducted among Allianz customers, brokers and industry trade organizations. It also surveyed risk consultants, underwriters, senior managers, claims experts, as well as other risk management professionals in the corporate insurance segment of Allianz Commercial and other Allianz entities.

Respondents were questioned during October and November 2025. The survey focused on large, smaller and mid-size companies. Risk experts from 23 industry sectors were featured.