Allianz Risk Barometer 2026 -
Top risks for smaller companies

Article | January 2026

The Allianz Risk Barometer top 10 risks of most concern for large (>$500mn annual revenue), mid-size ($100mn to $500mn) and smaller companies (<US$100mn) are largely consistent with the global ranking. Cyber incidents is the top risk for all three sizes of company, while artificial intelligence (AI) is a top three risk. Business interruption ranks #2 for both large and mid-sized but is of slightly less concern for smaller firms (#4), which rank changes in legislation and regulation higher (#3). 

While companies of all three sizes face similar challenges today, their ability to navigate transformative trends and complex risks like AI and geopolitics differs widely. Take cyber, where AI can enable cyber criminals to increasingly go after small- and mid-sized companies, which are typically more vulnerable to attack and more susceptible to extortion. 

Unlike larger companies, smaller firms tend to adopt cost-effective, scalable solutions and are therefore more reliant on third parties for their digital infrastructure, have fewer resources to invest in cyber security and resilience, and are less able to absorb the impact of a successful attack, according to Rishi Baviskar, Global Head of Cyber Risk Consulting, Allianz Commercial.

Figures represent how often a risk was selected as a percentage of all responses for that company size. 

AI also poses challenges for smaller companies.

“AI’s benefits are also accompanied by operational, workforce, governance, ethical, and reputational risks. But while larger companies will have the resources and governance to manage these risks and capture the opportunities, smaller and mid-sized companies will find it more challenging,” says Michael Bruch, Global Head of Risk Consulting Advisory Services, Allianz Commercial.

“However, with the right support and strategies, organizations of all sizes can position themselves to benefit from AI. AI will widen the gap between those with the skills and resources to manage the risks of new technology and those that do not. This makes it even more important for all businesses to invest in upskilling, robust risk management, and collaborative approaches to ensure they can safely harness AI’s potential.”

“Cyber and AI are clearly a big issue for our clients, large and small. And there is a real need to invest in loss prevention measures to protect your business, your clients and their data to avoid a major catastrophe. Smaller and mid-sized companies have limited resource and budget to invest in cyber resilience, but insurers are able to help bridge this gap with products and services,” says Baviskar.