The most significant financial risks for businesses in 2025 – and how to prepare for them
Every business deals with financial risk. Some risks, like economic downturns or rising costs, are more familiar. While others, such as AI misfires or climate-related disruption, are newer and harder to predict.
Finance leaders are facing a growing challenge: balancing risk management with the need for business growth. With global uncertainty and emerging technology, staying on top of financial risk requires a mix of preparation and adaptability.
Here are the seven most significant risks businesses must manage in 2025 and how to reduce their impact.
Cybersecurity risk
Cybercrime is on the rise. And businesses of all sizes are being targeted. Attacks are more sophisticated, and their financial impact is growing. According to a report by Allianz, cyber incidents are now the most significant risk to business continuity, overtaking supply chain disruption.
A data breach or ransomware attack can shut down operations, damage customer trust, and lead to costly legal action. For finance teams, business resilience means reducing risk, tightening security, training employees and using financial tools with built-in protections.
One way to limit exposure is to separate financial accounts and strengthen spending controls. Soldo gives finance teams real-time visibility over payments while keeping core business accounts secure from cyber threats.
Unlike traditional bank accounts and credit cards, Soldo’s prepaid cards reduce the risk of unauthorised transactions by guaranteeing money is used as intended, with automated approvals and custom spending limits. Read our cybersecurity guide to learn how to protect company finances from cyber threats.
Business risk and interruption
Unexpected events, like supply chain breakdowns, power outages, or economic instability, can bring operations to a standstill. The knock-on effects often result in lost revenue, rising costs and disrupted cash flow.
Supply chains remain vulnerable to geopolitical issues and extreme weather, with businesses already seeing delays and price increases. Companies further down the chain will feel the impact if suppliers are affected.
To reduce risk, finance teams should prioritise cash flow visibility and flexibility. Providing access to real-time financial data, diversifying suppliers and setting clear financial buffers can help businesses stay steady in uncertain times.
Legislative and regulatory risk
Laws and regulations are tightening around financial reporting and sustainability. The Financial Conduct Authority (FCA) is introducing stricter transparency rules, and businesses operating internationally must comply with evolving EU carbon reporting standards.
New compliance requirements can mean higher costs, from adapting processes or avoiding fines. It’s essential to keep track of these changes and equip financial teams to manage them effectively.
Automating financial reporting can reduce the burden. Spend management tools like Soldo help finance teams track and manage expenses efficiently so compliant spending is accounted for without unnecessary admin.
Soldo’s CO2e Tracker lets businesses measure their environmental impact by tracking and reporting on emissions made as a result of their financial activities. The integration gives businesses a head start on the new requirements, allowing you to calculate, report on and offset scope 3 emissions easily.
Economic uncertainty and political risk
Recent political changes in the UK and US will continue to impact trade, tax and financial stability in 2025 and beyond.
Last month, the Bank of England cut interest rates to 4.5%, easing borrowing costs but leaving businesses facing wage pressures and uncertain operating expenses.
Potential tariffs on UK and EU imports and shifting foreign policies could lead to exchange rate fluctuations, affecting businesses trading internationally.
To mitigate risks, finance leaders should track policy changes, assess exposure to trade fluctuations and maintain strong financial controls.
AI and emerging technological risk
AI can transform business operations, automate routine tasks, and predict financial trends. However, as companies become more reliant on AI, new risks are emerging.
Errors in AI-driven decision-making can lead to miscalculations, compliance issues or reputational damage. Biased algorithms can also affect hiring, lending, or pricing models without human oversight.
The key here is balance. Using AI to free finance teams and enhance efficiency while maintaining human control over strategic activities. With Soldo, finance teams saw a 62% reduction in time spent processing and reviewing expenses (Forrester’s Total Economic Impact™). This allows teams to focus on more valuable work, improving financial oversight and decision-making.
Market risk and volatility
After a period of rising inflation and interest rate hikes, businesses are now adjusting to a new shift. While inflation fell to the Bank of England’s 2% target in late 2024, it has since increased to 3% in early 2025, raising concerns about future cost pressures. The recent base rate reduction to 4.5% has eased borrowing costs slightly, but they remain elevated compared to pre-2022 levels.
Rising costs – wages, raw materials, and operational expenses – put a strain on budgets. Market fluctuations and currency volatility create additional challenges for companies trading internationally.
To manage financial pressure, finance teams should prioritise cash flow forecasting and maintain spending discipline. Real-time financial tracking can help businesses keep tighter control over costs, making sure money is allocated effectively.
Climate-related risk and shifts towards sustainability
Extreme weather events are disrupting industries from agriculture to logistics. Rising insurance costs and regulatory pressures on sustainability are adding financial strain.
Investors and customers are increasingly looking for businesses with strong environmental credentials. Businesses that fail to meet sustainability expectations could lose business and struggle to attract investment and new employees.
Building resilience means integrating climate risk into financial planning, assessing everything from carbon emissions to the impact of weather-related disruptions. Green finance initiatives, such as sustainable investments or carbon offsetting, will grow in importance.
Staying in control amid uncertainty and risk
Businesses can’t eliminate risk, but they can prepare for it. Finance teams play a central role in making sure risks are identified early and managed effectively.
The focus for 2025 should be on financial discipline, transparency and adaptability. Whether you are managing cybersecurity threats, adjusting to new regulations, or keeping abreast of economic changes, having the right tools makes a difference.
Soldo helps finance teams control spending, reduce exposure to fraud and maintain visibility over company money. While 2025 will bring challenges, businesses can stay resilient and ready for whatever comes next.
