Reinsurance News

Cyber threats and contract weaknesses dominate supply chain risk agenda in 2025: WTW

16th May 2025 - Author: Taylor Mixides -

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WTW, an advisory, broking, and solutions firm, has revealed its latest Global Supply Chain Risk Survey, capturing a major pivot in how large corporations are approaching supply chain risk in 2025.

The report, based on responses from 1,000 senior executives across multiple industries, highlights a growing urgency to confront digital threats and structural weaknesses in supplier agreements.

Conducted in November 2024, the survey gathered insights from C-suite leaders, risk and supply chain managers, and logistics executives—all from organisations generating over $250 million in annual revenue.

The results indicate that supply chain risk has become far more central to board-level conversations and long-term business planning than in years past.

Top of mind for respondents is cybersecurity, which now ranks as one of the most pressing supply chain concerns. Alongside this, weaknesses in supplier contracts are drawing increased scrutiny, as companies recognize the operational and financial consequences of gaps in contractual protections and enforcement.

In addition, businesses are stepping up their investment in digital capabilities. The report shows a stronger emphasis on leveraging data to improve transparency and decision-making across supply chain networks.

These digital efforts are increasingly aligned with broader organisational goals, reflecting a shift toward more integrated and future-ready supply chain strategies.

Leadership involvement has also intensified. More companies are assigning executive oversight or building specialised teams to oversee supply chain risk. While there is growing sophistication in risk approaches, the report notes that many companies still lack end-to-end strategies—highlighting an opportunity for further development.

WTW’s findings underline a broader movement toward resilience and preparedness, as supply chains remain exposed to an increasingly complex mix of geopolitical, environmental, and technological disruptions.

Simon Sølvsten, Head of Organisational Resilience Research at the WTW Research Network, said: “Supply chains are the backbone of any organisational ecosystem.

“However, their complex design, international reach, and broad exposure to risk present significant challenges for organisations in maintaining the necessary understanding and oversight of inherent risks crucial for building efficient organisational resilience, especially as they strive to keep pace with the evolving risk landscape while avoiding the bias of overemphasising the likelihood of recent events reoccurring.”

Hugo Wegbrans, Head of Corporate Risk and Broking Europe, added: “The complexity of modern supply chains presents a unique challenge for the insurance industry, where risks must be thoroughly understood and accurately quantified to enable effective diversification and appropriate premium pricing.

“Proper risk quantification is essential to ensure that premiums reflect actual exposures, enhancing acceptable risk profiling, competitiveness, and the overall appeal of the market.”