Global business leaders now fear high taxation above all other threats, as the pressure of public scrutiny grows and demands for transparency get louder.

That is the finding of this year’s Lloyd’s Risk Index, in which more than 500 business leaders reveal their attitudes to 50 threats, with the largest number of respondents (31%) coming from the Asia-Pacific region.

The biennial survey’s results are set against the backdrop of an ongoing global economic crisis and revised growth projections for countries such as China and India.

“Instead of accelerating demand from high-growth markets lifting Western economies from stagnation, the impact of decreased demand from Europe and the US has clearly affected developing markets,” Lloyd’s CEO Richard Ward says.

Businesses now appear more realistic about how much they can mitigate risks inherent in the wider economic, regulatory and natural environment.

In 2011 70% of respondents felt they were better prepared to manage risks than two years previously. Now the figure has dropped to 46%.

High taxation tops the list of threats, up from 13th place in 2011.

But while public concern about companies’ contributions has clearly grown in the past two years, raising pressure on governments to act, the reality is corporate income taxes have either been downward or static during the period.

Business confidence is being battered by “government ambiguity about business taxes, whether about extending jurisdictions, amending legislation or changing rates”. Governments must provide clarity sooner rather than later, Lloyd’s says.

Second on the list is loss of customers, down from the top spot in 2011.

“In virtually every region of the world, business leaders feel they are underprepared to deal with the fundamental risk that too few consumers are willing or able to buy their products.”

Third is cyber risk, which the report says was previously underestimated, having placed far lower in 2009 and 2011.

One catalyst for this “reality check” may be the evolving motivation for such attacks – from financial crime to political and ideological campaigns. The cost of cyber breaches is also growing.

Despite increasing awareness, businesses are still not properly prepared and are spending money on the wrong things.

“Cyber insurance specialists are offering increasingly integrated cyber products, including those that provide cover for data breach costs, forensic analysis and crisis public relations services in one package,” Lloyd’s says.

“While these products are highly effective in an emergency, spending money upfront on risk management – and ensuring recommendations are implemented throughout a company – might go a long way to preventing a cyber disaster before it starts.”

The price of materials is the fourth-biggest risk, climbing from seven in 2011, followed by excessively strict regulation, up to fifth from 10th.

The UK financial services industry has been the most vocal about regulation “but it’s an anxiety shared by business leaders across the world”.

Among Asia-Pacific respondents, the top five threats are price of materials, high taxation, currency fluctuation, inflation and loss of customers.

“The potential impact of economic, regulatory and market risk has increased the most in Asia-Pacific countries,” Lloyd’s says.

“Given that businesses in this part of the world are still showing strong growth despite recent slowdown, the priority given to the costs of raw materials reflects this major business overhead.”

Globally, climate change still ranks low – at 32 on the list.

The report notes the role of man-made carbon emissions is now “widely accepted” and there is increasing evidence of the link to extreme weather.

“The role of insurers in helping businesses and communities to mitigate and adapt to the effects of climate change is fundamental and the industry has a crucial role to play in helping customers to manage climate-change risks.”

As in 2011 risks from natural hazards are most keenly felt in the Asia-Pacific region – but they rank only in the 40s overall.

“In areas prone to natural catastrophes risk mitigation, while important, may only go so far.”

Lloyd’s says there are huge opportunities for the insurance industry as companies in faster-growing economies develop their risk management functions.

“The future of global economic power is shifting before [insurance companies’] eyes.

“If they fail to capitalise on these expanding markets now, they will miss the opportunities – the urgency of risk management in fast-growing countries cannot be postponed.”