Over 70% of Hong Kong executives see economic shift as the most critical risk in the next 12 months, according to AlixPartners Global Risk Survey

Over 70% of Hong Kong executives see economic shift as the most critical risk in the next 12 months, according to AlixPartners Global Risk Survey

Hong Kong (July 1, 2025) – Asia executives are more worried about technological and economic risks for the next 12 months than their peers, according to the latest survey published by AlixPartners, the global consulting firm. Most notably, a striking 72% of executives in Hong Kong have identified economic shifts and downturns as the most critical area of risk in the next 12 months, followed by the threats of technological advances (58%) and geopolitical conflicts (38%). 

The AlixPartners 2025 Global Risk Survey gathered responses from 1,000 senior executives in legal, compliance, and risk functions globally, among which include over 200 respondents in Asia. The results revealed significant gaps in preparedness and established benchmarks for regional and industry peers, providing vital insights into the pressing risks confronting businesses in an era of unprecedented volatility.

"Businesses in the region are operating at the intersection of multiple risk vectors—from economic uncertainty and technological disruption to shifting regulatory landscapes," said Colum Bancroft, Partner & Managing Director at AlixPartners and Asia Leader of the Risk Advisory practice. "What's particularly concerning is the significant gap between risk awareness and preparedness we're seeing in the region. While executives clearly recognize the economic challenges ahead, our data shows most organizations lack robust frameworks to navigate these complex risks, especially as emerging technologies like AI create new vulnerabilities across business operations."

Navigating Economic Turbulence and Geopolitical Flashpoints

Economic uncertainty and tariff policies have emerged as major concerns, with an overwhelming 88% of Asia respondents acknowledging they are not well-prepared to manage an economic downturn. Supply chain resilience remains a critical vulnerability, as 92% of executives indicate insufficient preparedness for supply chain disruptions.

Despite the overwhelming concerns, less than a quarter of Asia Pacific organizations (23%) feel adequately prepared to address geopolitical impacts on their global operations. Similarly, just 24% report being very prepared to address supply chain disruptions in the coming year.

Market Disruptions Fuel Escalating Corporate Litigation Activity

In an era marked by disruptions and uncertainties, 60% of respondents expect corporate litigation to rise in the next 12 months. In response, 69% are expanding their legal departments, 60% are engaging external risk and compliance consultants, 54% are increasing internal compliance budgets, and 51% are raising outside counsel budgets or engagement levels.

“The convergence of supply chain instability, economic volatility, geopolitical tensions, and changing regulatory environment is creating a perfect storm for commercial disputes and litigation across Asia,” said Michael Peer, Partner & Managing Director at AlixPartners. “Organizations that fail to institutionalize safeguards risk significant exposure as global trade fragmentation and inflationary pressures amplify contractual tensions.”

Financial Crime Surge Met with Inadequate Defense

The data indicates that 68% of Asia Pacific organizations feel underprepared to handle financial crime or fraud events in the next 12 months, despite 63% expecting financial crime to increase. Similarly, 65% anticipate that financial crime and sanctions regulations will become more stringent over the same period.

To improve their management of financial crime risk, organizations in the region are implementing several strategies: 56% are increasing board engagement, 51% are investing in improved technology solutions, 42% are transforming their data management practices, and 38% are enhancing collaboration with external counterparties such as suppliers and customers.

AI Governance Gaps and Cybersecurity Deficits Expose Operational Risks

While all signs point to significant risks presented by emerging technology, a majority of Asia Pacific organizations (75%) report they are inadequately prepared to handle digital disruption and technology evolution, including artificial intelligence (AI). The same percentage acknowledges insufficient readiness for cybersecurity breaches.

The survey also uncovers significant AI governance gaps across the region: 43% of organizations lack AI policies and guidance, 45% operate without a designated Head of AI or AI leadership role, and 56% have not established an AI governing body or committee. More concerning still, 64% of organizations report no board engagement on AI-related matters, despite widespread adoption of AI technologies.

“Our survey reveals a concerning paradox in Asia Pacific's AI landscape. As we continue to embrace AI's transformative potential, bridging these governance gaps must become a top priority for business leaders across Asia Pacific,” Stephen Yu, Partner & Managing Director and Greater China Co-Leader at AlixPartners. “The most successful organizations are those taking a proactive approach to AI governance – establishing clear policies, dedicated leadership, and board-level oversight that aligns technological innovation with strategic objectives.”

About the Survey: Fielded in February 2025, the survey includes responses from professionals based in Asia Pacific with a focus on Hong Kong SAR, Mainland China, Singapore, and Japan, as well as in the U.S., the UK, Western Europe, and Latin America. They operate in a variety of industries, with the largest numbers coming from financial services, technology, and manufacturing. The key findings released today spotlight global trends as well as important insights specific to these regions and industry sectors.  To explore AlixPartners’ key findings, click here. 

ABOUT ALIXPARTNERS

AlixPartners is a results-driven global consulting firm that specializes in helping businesses successfully address their most complex and critical challenges. Our clients include companies, corporate boards, law firms, investment banks, private equity firms, and others. Founded in 1981, AlixPartners is headquartered in New York and has offices in more than 20 cities around the world. For more information, visit www.alixpartners.com.

FOR MORE INFORMATION, CONTACT:

Nadine Sequeira, AlixPartners
[email protected]