Top 10 risks for the government and public sector in 2025 EY report

27th January 2025

Integrated risk management and courageous leadership will help government and public sector leaders mitigate interconnected threats in 2025.

Evolving disruption, plus tension between growing mistrust and public expectations of government, makes managing risk deeply challenging but vital in 2025.

An integrated approach to risk management can help governments better deliver on their obligations in the face of limited finances and political constraints.

By anticipating and mitigating the impacts of disruption, governments have an opportunity to prove their value and trustworthiness to a skeptical public.

sponsible for managing the most complex, pressing and existential risks to our societies, governments and public sector institutions face a challenging year ahead.

From geopolitical complexity and the impacts of the global fiscal crunch to advancing digitization and climate change, the top 10 risks they face are wide in range and potential impact. To add to the complexity, those risks sit against a backdrop of growing public mistrust of institutions and decreasing social cohesion.

As a result, the number one challenge for government and public sector leaders will be navigating the rapidly evolving risk landscape without compromising public service delivery or fiscal responsibility. That means making difficult trade-offs today to prevent larger crises tomorrow. It also means viewing risk management as an opportunity to build trust and demonstrate value to a skeptical public.

Taking an integrated approach to risk management allows governments to better anticipate challenges, respond swiftly and adapt to changing circumstances. A more anticipatory stance can also create opportunities to improve services and decisions, bringing further tangible benefits for constituents.

All of this requires courageous, inclusive and innovative leadership. Government and public sector leaders at all levels need to continually evaluate risks, then engage stakeholders internally and externally to effectively adapt and respond.

The risk landscape in 2025 is challenging, but it also presents opportunities to win back public trust. In this article, we summarize how government and public sector leaders who grasp these opportunities can foster greater societal resilience despite the disruption. Our accompanying report, which you can download here, features deeper analysis of each risk, along with suggested actions to help leaders shape the future with confidence.

For more and to download the full report go HERE