Abrupt rises in energy prices have overtaken asset bubbles as the biggest risk to local businesses, according to the World Economic Forum Executive Opinion Survey, conducted in conjunction with Zurich and Marsh.

Last year asset bubbles ranked first and energy price shock fifth when local business leaders were asked to rank their biggest worries.

This year about 62.3% of respondents list energy shocks as their top worry, with 41.6% for asset bubbles and 39% cyber attacks. Unemployment or underemployment is fourth, and failure of critical infrastructure and climate change adaption share fifth place.

The surge in gas and electricity prices in the past year, blamed in part on supply shortages, may have influenced the shift.

“While energy price shocks add to the cost pressure and challenge profitability for all businesses, in sectors such as manufacturing the prospect of energy shortages poses a serious threat to their ability to operate,” Pacific Head of Marsh Risk Consulting Costa Zakis said.

Risk management must remain an integral part of business strategy, the survey report says.

“Irrespective of where these risks are coming from, the big question for Australian executives is how they mitigate and manage them to make their businesses more resilient,” Zurich Australia and New Zealand Head of Commercial Giles Crowley said.

“It’s easier said than done, but there will be dividends for those that develop robust risk management strategies that give them options amid uncertainty.”

Globally, the top five risks are: high unemployment, fiscal crises, national governance failure, energy price shock and social instability.

The survey was conducted between February and June, and drew responses from 12,411 executives in 136 countries.

Full responses will be released with the World Economic Forum Global Risks Report in January.