A business’s people are its greatest asset – and one of its biggest risks

The top risks that businesses face in an already challenging economic environment are well documented.

Hardly a week or month goes by without another household name suffering a data breach (malicious or otherwise), meaning its little surprise that cyber was once again the top threat identified by the Allianz Risk Barometer 2026, which surveyed more than 3,000 risk management professionals across 97 jurisdictions.

Interestingly, the survey showed that AI has shot up the list of worries and is now second only to cyber. However, while AI adoption is undoubtedly growing and may well replace some roles in time, for most businesses – particularly small and medium-sized organisations – having the right people in place, with the necessary skills and motivation, remains key to their commercial success.

There are plenty of examples of businesses struggling when talent leaves. Perhaps the most famous is Steve Jobs, who co-founded Apple in 1976 then left a decade later after disagreements with the board. His 11 years away saw mixed fortunes for the business, before he returned in 1997 and oversaw significant expansion over 14 years, before his untimely death in 2011, that made Apple one of the world’s most valuable companies.

The risk doesn’t just lie at the most senior levels, though. Any inability to attract and retain the right talent – no matter the level or role – can impact a business’s ability to deliver its products and services and potentially lead to financial distress.

In an environment characterised by labour and skills shortages, economic uncertainty, and a rising cost of doing business, this is a pressing concern for many – not least those such as the hospitality trade and care home operators that have traditionally relied to some extent on workers from overseas and for whom the more restrictive immigration policy of recent years has created considerable pressure. 

Ultimately, though, any business that sees key people leave and finds itself unable to fill or replace roles is going to face difficulty. There’s also the additional emerging risk of existing employee apathy or lack of engagement – if people aren’t engaged and aren’t motivated to act in the best interests of the business, they can become a risk, particularly in the context of cyber breaches where employees are often the inadvertent facilitators of cyber attacks.  

Employees can be part of a domino effect that results in a downward spiral: a business loses a couple of key individuals who are difficult to replace; the constrained ability to deliver good or services impacts revenue; morale dips as team members are forced to saddle additional work and pressure; weaker financials mean less scope for investment and pay rises, leading to further departures; and so on. This, coupled with all the issues arising from the current business environment, may be enough to tip the business into insolvency.

It's a common saying among business leaders that their people are their greatest asset. While true in many cases, they can also be a major risk if they’re not the right people with the right motivation, or the right people leave. Ultimately, recognising these people‑related risks and responding with practical measures - robust succession planning, understanding regulatory expectations, investing in retention, development, engagement and cyber‑awareness to name just a few, help businesses strengthen resilience and ensure their people remain their greatest asset.

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