Singapore firms take broad approach to complex global risks

Singapore businesses are contending with a uniquely complex risk landscape, according to new findings released by AlixPartners as part of its 2025 Global Risk Survey.

The survey gathered responses from 1,000 senior executives in legal, compliance, and risk functions worldwide, including 50 from Singapore, and found that organisations in the city-state are managing a broader and more interconnected array of risks than both their regional and global peers.

Complexity across risk categories

Reshmi Khurana, Partner and Managing Director, Singapore Country Leader at AlixPartners, commented on the survey's findings, stating, "Singapore's position as a global business hub exposes organisations to a uniquely diverse set of interconnected risks. Unlike regional peers who can focus on fewer dominant concerns, Singapore businesses must simultaneously manage technological, regulatory, economic, environmental, and geopolitical factors, creating what we call a 'complexity conundrum.'"

The survey revealed that, while 65% of global organisations report being unprepared for cyber threats, Singapore businesses are adopting an "all-front defence" strategy. Organisations in the city-state are investing consistently across various cybersecurity tactics, with efforts distributed between 18% and 31% across different security measures. This approach contrasts with other markets such as China, where investment is more concentrated on certain tactics, and Japan, where there is greater variance across measures.

"This comprehensive cybersecurity approach reflects Singapore's recognition that its complex risk landscape requires a multi-faceted defence strategy rather than prioritizing individual tactics. While global organisations struggle with cybersecurity preparedness, Singapore businesses are pioneering a more balanced approach that acknowledges the interconnected nature of today's threats," noted Reshmi Khurana.

Climate change as a key concern

The AlixPartners survey also highlights that Singapore-based organisations are more concerned about climate change than any of their regional peers, with 42% ranking it as a key risk—double the concern reported in Hong Kong (16%) and higher than both Japan (20%) and China (39%).

Reshmi Khurana explained, "Singapore's heightened focus on climate change reflects a forward-looking risk assessment that will become increasingly important for all businesses. Organisations that follow Singapore's lead in prioritizing climate risk will be better positioned to navigate the regulatory, operational, and reputational challenges that lie ahead as climate impacts accelerate across the globe."

Multi-jurisdictional risk management

Amid growing international regulatory changes, 71% of global businesses admitted to being unprepared for such shifts. In response, Singapore organisations are investing in various compliance requirements, reporting balanced allocation to cybersecurity (20%), AI regulations (15%), technology resilience (12%), ESG (11%), and data privacy (9%).

Singapore businesses are also regional leaders in AI adoption, with only 3% reporting a lack of AI use, compared to 6% in Japan and 7% globally. Their investment strategies in financial crime prevention are similarly balanced, with a split between preventive controls and technology investment (each at 28%), and risk management efforts extend across geopolitical issues such as supply chain shifts, sanctions, and cybersecurity threats.

Preparing for increased financial crime and litigation

The survey reveals that more than 60% of organisations worldwide expect an increase in financial crime over the next year. Among Singapore-based firms, preparations for this outlook include increased risk assessments (11% — the highest in Asia Pacific), engaging external risk and compliance consultants (10%), and enhancing internal compliance budgets (10%).

Khurana added, "The complexity of managing multi-jurisdictional operations creates unique challenges for Singapore-based businesses. While the threat of financial crime and corporate litigation is consistent with global trends, Singapore organizations must address these within a broader context of interconnected risks stemming from their role as a regional and global business hub."

International context

Globally, the survey found that most organisations are not sufficiently prepared to address critical risks, including data privacy (61%), AI-related threats (68%), geopolitical impacts (71%), and supply chain disruptions (70%). Singapore's broad-based risk management and forward planning reflect an attempt to address the heightened risk exposure faced by companies in the city-state, given its role as a major international business and financial centre.

The survey covered a variety of sectors, with a particular focus on organisations in financial services, technology, and manufacturing, and encompassed responses from business leaders in Asia Pacific, the US, the UK, Western Europe, and Latin America.