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Risk Outlook 2025: 65% Of Organisations See Political Stress, Anxiety As Significant Risks In Fragmented World

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New Delhi, Dec 7, 2024: The increasingly volatile geopolitical landscape is taking a profound toll on mental health, with 65% of organisations identifying political stress and anxiety as significant risks in 2025, according to a new study. 

The International SOS has released its 2025 Risk Outlook report, revealing essential insights into the mounting challenges for organisational and workforce resilience, alongside risk predictions for the forthcoming year. The research uncovers a Fragmenting World, with 65% of the surveyed senior risk professionals perceiving that risks have increased over the past year, and 69% predict significant impacts from geopolitical challenges alone in 2025. This comes as 78% indicate that burnout and stress are likely to significantly impact businesses in the year ahead.

The new research highlights that some of the most significant risks are those for which respondents said they were least prepared, including conflict, geopolitical tensions, and protests.

Neeraj Balani, the Managing Director for the Indian Subcontinent at International SOS, emphasises the urgent importance of organisations grasping the more profound implications of a fragmenting world — far beyond just the headlines and political rhetoric.

“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. In today’s interconnected world, a single cyber incident can trigger widespread operational chaos and affect your workforce, showcasing the pressing need for companies to adopt a holistic approach to risk management. Organisations must develop strong risk assessment frameworks that tackle these intricate challenges head-on to thrive. This means engaging in scenario-based planning that anticipates possible geopolitical shifts and consequences. The International SOS Risk Outlook 2025 offers a thorough analysis and profound insights into emerging risks and opportunities, providing leaders with the strategic information needed to make informed decisions and safeguard their business and workforce,” he said.

Geopolitical instability ranks as a top concern for organisations heading into 2025, underscoring the fragility of a deeply interconnected global landscape. Businesses are now contending with an environment where conflicts are not confined to political borders but reverberate across industries, economies, and supply chains, the research said.

According to the study, 75% of respondents cite political and social unrest and protests as a top risk, 74% express concerns about geopolitical tensions, 73% highlight the associated transport risks and disruptions as a key issue.

The risks are manifesting in varied and often overlapping ways. In Europe, the conflict in Ukraine has destabilised energy markets and fractured political alliances, creating ripples across the continent. In the Middle East, the ongoing crises are intensifying polarisation.

The increasingly volatile geopolitical landscape is taking a profound toll on mental health, with 65% of organisations identifying political stress and anxiety as significant risks in 2025, the study said. These pressures are compounded by broader wellness risks that the following percentage of surveyed experts predict are likely to have a substantial impact over the next 12 months: stress and burnout: 78%; impact of cost-of-living crisis: 75%;  mental health conditions: 70%; quiet quitting: 52%; and climate change anxiety: 45%. 

Alongside the mental health challenges, only 53% of organisations feel prepared for a new infectious disease or pandemic. Dr Vikram Vora, Medical Director and Chief Health Officer (Indian Subcontinent) at International SOS, comments: "As the world becomes an increasingly complex, with unpredictable turns in geopolitical events, consequent economic uncertainties, rapidly spiralling climate crisis and changing disease patterns, human wellbeing is at stake, with stress, anxiety and burnout becoming commonplace. This situation is poised to transform into a full-blown emergency, impacting countries, communities, organisations and individuals.  Organisations need to prioritise employee wellbeing and initiate immediate action towards managing and improving their mental health. Any business that wants to be sustainable must build resilience within its workforce by creating safe spaces for employees to learn, understand, speak out and seek support to improve mental wellbeing. 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."

Despite organisations' many complexities and challenges, there are clear pathways to building resilience. According to the report, resilient organisations share three key characteristics: Decision-makers need timely, relevant, and verified information tailored to their organisation's risks. This is critical in addressing misinformation and disinformation; 27% of organisations reported that misinformation has already disrupted their operations, with a further 32% reporting a blind spot and unsure if misinformation has impacted them. Unified risk management systems streamline processes and enhance the productivity of risk managers. These platforms also enable seamless communication across teams, which can help leaders support their employees when dealing with the impacts of risks such as extreme weather and natural disasters (49% of experts believe this will pose a significant effect in 2025). By providing a single platform of reliable information, organisations can respond swiftly to both anticipated and unforeseen risks. Consolidating resources allows organisations to prioritise high-risk areas without overextending. For example, 75% of respondents highlight increasing employee expectations about Duty of Care, making it essential to embed proactive health, safety, and security measures into operations. These investments are vital to addressing current and emerging risks.

The International SOS Group of Companies is in the business of saving lives and protecting the global workforce from health and security threats. It delivers customised health, security risk management and wellbeing solutions to fuel an organisation’s growth and productivity.

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