As South Africa enters the new year, there are clear signs of economic momentum and confidence in the country’s prospects.
Between January and December 2025, approximately 10,5 million international tourists visited the country, surpassing pre-pandemic levels and supporting jobs, local economies, and foreign revenue. This record level of tourism reflects renewed global confidence in South Africa’s brand and business environment and comes at a time when consecutive quarterly growth and a stronger fiscal position contribute to a cautiously optimistic outlook for 2026.
Based on input from more than 3,000 risk professionals worldwide, the Allianz Risk Barometer for 2026 highlights the issues companies are most concerned about in the year ahead. For South Africa, cyber incidents are the leading risk, alongside rising concerns about artificial intelligence and ongoing environmental disruption.
Cyber risk is no longer a technology problem
Cyber incidents remain the number one business risk globally and in South Africa. Cyber events today are less about isolated data breaches and more about operational shutdowns. When systems fail, businesses cannot process payments, access records, or meet contractual obligations. The financial impact often comes from interruption rather than theft.
A recent ransomware attack stopped production at Jaguar Land Rover (JLR) affecting over 5 000 organisations in JLR’s supply and distribution chain. The cyber attack is estimated to have cost $2.8 billion which would rank it among the costliest cyber incidents in the UK.
Another factor increasing exposure is reliance on third parties. Cloud platforms, software providers, and outsourced services are now critical to daily operations. When one link fails, the consequences cascade quickly. From an insurance perspective, this raises important questions about preparedness, coverage limits, and response planning long before an incident occurs.
Artificial intelligence introduces new forms of liability
Artificial intelligence has moved rapidly up the risk rankings. The concern is not the technology itself, but how quickly it is being introduced into decision-making without clear governance. Many organisations are experimenting with artificial intelligence tools while accountability remains unclear.
When automated systems influence pricing, approvals or customer communication, responsibility does not disappear. Businesses are increasingly exposed to legal, regulatory, and reputational risks if their outputs are incorrect, biased, or misleading. The Allianz findings reflect growing awareness that artificial intelligence must be treated as a business risk that requires oversight, not as a standalone innovation project.
Environmental disruption remains a quiet but persistent threat
Environmental and climate-related risks continue to affect operations. Extreme weather, infrastructure strain, and supply chain disruption all have direct consequences for physical assets and business continuity.
In South Africa, where infrastructure resilience is already under pressure, these risks often surface indirectly. Flooding, power disruptions, or transport delays can quickly lead to financial losses. The key issue for businesses is whether existing risk assessments and insurance arrangements still reflect current conditions rather than historical assumptions.
From awareness to preparedness
Of course, awareness alone does not reduce exposure. Preparedness does. That means understanding where operations are vulnerable, clarifying accountability, and ensuring risk transfer strategies remain aligned with reality.
Organisations need to adopt an integrated resilient strategy that combines cyber defence, AI governance, supply chain diversification, climate adaptation, geopolitical monitoring, and crisis response. True resilience comes from connecting these capabilities into a cohesive framework.
For local businesses, the most significant risks are already visible. The work now is practical, disciplined, and ongoing.