Online Threats Biggest Challenge For Businesses: Survey

The business environment is becoming increasingly volatile and complex, with heightened economic and geopolitical uncertainties resulting from the US tariffs and trade policies, and conflicts and wars elsewhere. To help members, CA Lab has published numerous articles on some of the most pressing issues, including recommendations from industry leaders on the next steps to take, and guidances to help companies address the hurdles.

While grappling with external problems, businesses worldwide are simultaneously faced with other complications brought on by technology and artificial intelligence (AI), as revealed in a new study by financial and risk advisory firm Kroll. The inaugural 2025 Global Business Sentiment Survey report, launched in June, indicates that the threat of cybersecurity is the most serious challenge facing businesses in 2025.

The survey collected insights from 1,200 C-suite executives in financial services, technology, and other industries across more than 20 countries including Singapore, with the aim to provide a comprehensive view of the international business landscape. However, it must be noted that the survey was conducted before the US “Liberation Day” tariffs announcement on April 2.

The survey findings show that business leaders in Singapore are among the most confident globally, about their level of business preparedness when it comes to dealing with the slew of challenges spanning geopolitical tensions, cybersecurity threats, and AI developments. Forty-eight per cent (48%) of respondents in Singapore say they are “very prepared” to tackle the challenges, a figure that is higher than the 34% for Asia Pacific, and 38% globally.

Most pressing global business challenges for 2025

CYBER, AI AND REGULATORY CONCERNS

As the digital landscape grows more complex and threat actors become more sophisticated, business leaders across the globe are sounding the alarm on their most urgent risks for 2025.

• Nearly three-quarters (74%) of organisations report increased cybersecurity and data privacy concerns, with the most common threats including malware (44%) and AI-powered exploits (28%).

• Recent and prominent cyberattacks across the globe have only fuelled business leaders’ concerns over keeping sensitive information secure. Cybersecurity threats rank among the most significant business challenges to organisations (47%), followed by AI developments and integration (43%).

• Only 12% of companies feel “completely prepared” to address the global patchwork of data privacy laws, exposing significant compliance gaps at a time when regulatory requirements are becoming more complex. Countries like Saudi Arabia and the United Arab Emirates, Singapore, and the US are among those feeling the most adequately prepared.

• Despite more than three-quarters of respondents believing AI will deliver measurable returns on investment, only 41% of companies have AI policies and guidance in place, and slightly more than a third (34%) have implemented continuous monitoring, leaving organisations exposed to unregulated decision-making, compliance failures and ethical risks.

The findings are not unexpected, as they are similar to those from other surveys.

WANING BUSINESS CONFIDENCE

Financial uncertainty and geopolitical tensions are creating a volatile landscape for global businesses in 2025, forcing leaders to navigate a complex mix of economic, regulatory and operational risks.

• Fewer than one in 10 business leaders express full confidence in their company’s financial health, though 70% expect some degree of improvement even as they confront the challenges ahead.

• Globally, one in three respondents (33%) rank geopolitical tensions among their top business challenges for the year, with companies in the US, UK and Europe most likely to see it as a major concern. In Asia Pacific, the figure is 28% and in Singapore, 22%. Tariffs, technology controls and cybercrime, supply chain disruption, regulatory shifts, and sanctions have been cited as the highest areas of geopolitical concern.

• US companies are more concerned than their global peers about issues pertaining to inflation and domestic political tensions. Evolving data privacy regulations worry European companies more than other regions.

• Geopolitical tensions are amplifying supply chain risks and increasing the threat of attacks on critical infrastructure. Only 28% of global business leaders say they feel “very prepared” to address geopolitical tensions and trade disruption.

AUTOMATION AND DIGITAL TRANSFORMATION

While risks are rising across the globe for business leaders, there is encouraging momentum in automation and digital transformation, which go some way to help alleviate the pain points.

• Approximately 90% of organisations report some degree of automation across business activities, with IT and cybersecurity functions becoming highly automated and digitised, especially in the Middle East, South Africa, the US and Brazil.

• Across the board, at least four in 10 business leaders are increasing budgets, expanding teams, upskilling and/or hiring external help for AI integration, tech advancements, cybersecurity challenges and data privacy concerns

The accountancy industry is also investing in IT and AI. In Singapore, a landmark global study finds that accountancy professionals – similar to business leaders surveyed by Kroll – are eager to adopt AI. The AI and the Future of the Global Chartered Accountancy Profession report reveals that more than one in two respondents (52%) believe AI will help them work more effectively. There is also broad recognition (83%) that accountancy firms which fail to integrate AI into their processes risk falling behind. This survey draws insights from 2,718 respondents across 48 countries representing 13 Chartered Accountancy bodies, including ISCA.