International SOS has released its much-anticipated 2025 Risk Outlook, shedding light on the increasing challenges that organizations will face in the coming year. The report reveals that the world is becoming more fragmented, and businesses must adapt to a variety of emerging risks. According to the findings, 65% of senior risk professionals feel that risks have escalated over the past year, with 69% predicting significant impacts from geopolitical tensions in 2025. Additionally, 78% of respondents foresee burnout and stress as major concerns for businesses in the year ahead. This paints a complex picture where organizations must not only deal with external geopolitical instability but also address internal challenges related to workforce well-being.

A Fragmenting World: Urgency for Holistic Risk Management

Neeraj Balani, Managing Director for the Indian Subcontinent at International SOS, stresses the importance of organizations understanding the deeper implications of a fragmenting world. "As countries conflict, both within and with each other, businesses face security risks to their assets and people, regulatory challenges, and an unpredictable investment landscape," he noted. Balani’s statement emphasizes the need for companies to go beyond political headlines and rhetoric to understand the real-world impact on their operations. The report shows that businesses are particularly unprepared for some of the most significant risks, including conflict, geopolitical tensions, and protests, which are now seen as more immediate threats than ever before.

The report calls for organizations to adopt a more holistic approach to risk management, one that takes into account the interconnectedness of global events. In today’s rapidly changing world, a single cyber incident or geopolitical shift can trigger widespread operational chaos. Balani explains that companies must develop robust risk assessment frameworks to tackle these complexities head-on, integrating scenario-based planning that anticipates not just the risks we know, but also the unknowns that could emerge.

Geopolitical Tensions: A Top Concern for 2025

Geopolitical instability has emerged as a top concern for organizations heading into 2025. According to the report, 75% of respondents highlighted political and social unrest, including protests, as one of the top risks for their businesses. Geopolitical tensions, with 74% of respondents raising concerns, are also increasingly seen as a disruptive factor in business operations. Additionally, 73% of those surveyed noted that transport risks and disruptions related to geopolitical events will pose significant challenges.

These concerns are not just abstract. The report notes that in Europe, the ongoing conflict in Ukraine has already destabilized energy markets and fractured political alliances. The reverberations of this conflict continue to affect businesses and supply chains across the continent. Meanwhile, in the Middle East, long-standing crises are intensifying polarization, making it more difficult for businesses to operate smoothly in the region. These geopolitical risks, with their far-reaching effects, are underscoring the growing vulnerability of global businesses in today’s interconnected world.

Mental Health and Burnout: The Hidden Costs of Geopolitical Instability

The report also highlights a less visible but equally important aspect of the geopolitical instability: its toll on mental health. As geopolitical tensions escalate, so too does the stress on employees and organizations. Dr. Vikram Vora, Medical Director and Chief Health Officer for the Indian Subcontinent at International SOS, underscores the mental health challenges facing the workforce: “As the world becomes increasingly complex, with unpredictable turns in geopolitical events, consequent economic uncertainties, rapidly spiraling climate crisis, and changing disease patterns, human well-being is at stake.”

The findings show that 65% of organizations have identified political stress and anxiety as significant risks for 2025. This growing mental strain is compounded by other factors such as burnout, with 78% of respondents expecting stress and burnout to impact businesses in the next 12 months. The cost-of-living crisis is expected to affect 75% of businesses, while 70% are worried about mental health conditions in their workforce. Additionally, 52% of respondents highlighted the risk of "quiet quitting," a phenomenon where employees disengage from their work without formally resigning. The climate crisis also looms as a source of anxiety, with 45% of experts predicting that climate change-related stress will take a toll on the workforce. Despite these growing mental health concerns, only 53% of organizations feel prepared for a new infectious disease or pandemic, indicating a significant gap in readiness.

Dr. Vora’s statement reinforces the urgent need for organizations to prioritize employee well-being, particularly in such a turbulent geopolitical landscape. He calls for businesses to focus on managing mental health proactively, creating safe spaces where employees can seek support and engage in conversations about mental well-being. “Leaders will need to come forward and promote conversations around mental health to help drive engagement, ensure productivity, and build a healthier workforce in this rapidly changing world,” Vora urges.

Building Resilience: Pathways to Success

While the challenges are significant, the report also emphasizes the ways organizations can build resilience in this fragmented world. According to the research, resilient organizations share three key characteristics. First, they have access to actionable intelligence, which enables decision-makers to act on timely, relevant, and verified information. This is crucial in a world where misinformation is rampant; the report found that 27% of organizations have already faced disruptions due to misinformation, with 32% unsure of its impact on their operations.

Second, resilient organizations make use of integrated risk management platforms. These systems enable organizations to streamline processes, enhance productivity, and ensure seamless communication between teams. By providing reliable information through a single platform, organizations can respond quickly to both expected and unforeseen risks. The ability to react swiftly to crises, such as extreme weather and natural disasters (49% of experts anticipate this to be a significant risk in 2025), is critical in today’s unpredictable environment.

Finally, the report emphasizes the importance of optimized resource allocation. With employee expectations about duty of care increasing—75% of respondents noted this as a concern—organizations must prioritize health, safety, and security measures within their operations. Proactively investing in these areas will help businesses address both current and emerging risks.

The Road Ahead

The International SOS 2025 Risk Outlook provides essential insights into the growing risks organizations will face in the coming year. As geopolitical tensions escalate and mental health challenges rise, businesses must take steps to protect their employees and their operations. By adopting a holistic approach to risk management, embracing integrated platforms, and prioritizing mental health, organizations can build the resilience needed to navigate the uncertainties of 2025 and beyond. The key takeaway is clear: organizations that prepare now will be better positioned to withstand the complex and interconnected challenges ahead.