Supply Chain Vulnerabilities Persist Despite Enhanced Risk Management

Nearly two-thirds, or 63%, of organizations continue to experience higher-than-expected supply chain losses despite enhanced risk management efforts, according to the 2025 WTW Global Supply Chain Risk Survey.
The survey reveals a significant pivot in supply chain risk priorities with geopolitical tensions (19%) and cybersecurity threats (16%) surpassing pandemic concerns. In addition, less than 8% of businesses believe they have complete control over their supply chain risks, underscoring the critical need for strategic partnerships and more robust internal capabilities to navigate these challenges, according to the report.
“Supply chains are the backbone of any organizational ecosystem. However, their complex design, international reach, and broad exposure to risk present significant challenges for organizations,” stated Simon Sølvsten, head of Organizational Resilience Research at the WTW Research Network.
Geopolitical Instability and Cybersecurity Reshape Risk Priorities
Supply chain risk priorities have undergone a dramatic transformation since 2023, reflecting the volatile global landscape businesses now navigate. Geopolitical factors have surged in importance, with 55% of respondents ranking them as a top concern in 2025, compared to just 35% in 2023. This sharp rise underscores how international tensions, trade disruptions, and political instability have become critical considerations in supply chain planning.
Cybersecurity has emerged as another dominant concern, climbing from relative obscurity in supply chain considerations to becoming a central focus for risk managers, WTW found.
The percentage of businesses identifying data security as a critical risk more than doubled, jumping to 47% in 2025 from 23% in 2023. This reflects the growing vulnerability of increasingly digitalized supply chains to cyber threats, the report noted. Meanwhile, inflation has also gained prominence, with 55% of businesses ranking it among their top three risks in 2025, up significantly from 31% in 2023.
Conversely, pandemic and health-related risks have receded in urgency, dropping to just 37% in 2025 from 60% of respondents ranking them as a top concern in 2023. This shift suggests that while COVID-19 dramatically reshaped supply chain thinking, businesses have now incorporated those lessons and turned their attention to more immediate threats posed by geopolitical instability and economic pressures, according to WTW.
The Control Paradox: Confidence Versus Reality
Despite increased investment in risk management, businesses continue to face a significant gap between their perceived control over supply chain risks and the actual outcomes they experience, the survey showed. While 57% of organizations believe that supply chain risks are partially within their control, and 31% feel these risks are somewhat within their control, the reality of disruption paints a different picture, WTW reported.
In 2025, 62% of businesses reported experiencing supply chain losses that exceeded their expectations, with 10% being hit by much higher losses than anticipated.
This disconnect between confidence and outcomes has persisted since 2023, when 65% of companies faced similarly unexpected losses. The consistency of these findings highlights a persistent challenge: despite improvements in risk management frameworks, the complex, interconnected nature of global supply chains continues to produce unforeseen vulnerabilities for organizations, according to WTW.
Raw material shortages have become increasingly problematic, with 35% of businesses ranking this among their top four concerns in 2025, up from 23% in 2023. Meanwhile, transportation issues and driver shortages, which were previously significant concerns, have diminished in importance (dropping to 23% from 34%), suggesting that companies have adapted their logistics strategies in response to earlier disruptions.
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