Risk Management Trends to Follow in 2026

By Anne Ploetner
ClearRisk

As discussed in our Risk Management Trends to Follow in 2025 blog, organizations navigated an increasingly complex risk landscape driven by cybersecurity threats, rapid advances in AI, environmental pressures, and operational constraints. As we move into 2026, these risks have not only intensified, but they have also become more interconnected and difficult to manage. Economic uncertainty, accelerating climate impacts, and the rapid evolution of technology are reshaping how organizations prepare for and respond to risk.

Organizations are facing a world where disruptive events – from cyberattacks to climate disasters – are more frequent, have a higher impact, and are more difficult to predict. Operational resilience, cyber threats, Environmental, Social, and Governance (ESG) pressures, and AI governance are top concerns for executives and risk leaders globally (IIA)(MNP)(Deloitte)(KPMG) .

Organizations that take proactive steps in ESG readiness, cyber resilience, AI governance, insurance strategy, and operational continuity will be better positioned to adapt and thrive.

The top trends discussed in this blog are:

• ESG & Climate-Related Risk
• Cyber Security, Cyberattacks & Cyber Risk
• AI & Automation: The Dual Edge of Emerging Technologies
• Insurance Market Pressures & Risk Transfer Challenges
• Operational Resilience & Business Continuity Demands

ESG & Climate-Related Risk

Climate-related risks and ESG accountability continue to rise to the forefront as extreme weather events, regulatory scrutiny, and stakeholder expectations increase globally. Natural disasters and climate-driven disruptions are among the most significant operational threats for 2026, often causing cascading impacts across supply chains, infrastructure, community services, and pose material operational, financial, and reputational risks (Deloitte)(KPMG).

Climate change and sustainability reporting pressures will challenge organizations of all sizes — not just large enterprises (IIA). As ESG regulations expand, organizations must prepare for increased expectations around transparency and climate-related risk management.

Key ESG and climate trends include increasing regulatory expectations for greenhouse gas reporting and sustainability disclosures, rising frequency and severity of climate-related disasters impacting infrastructure and operations, and growing stakeholder demands for transparent ESG performance (IIA)(MNP).

To prepare, organizations should:

• Develop climate adaptation and resilience plans.
• Invest in tools to assess and model climate-related risks.
• Strengthen business continuity strategies for extreme weather events.
• Ensure ESG reporting aligns with emerging compliance standards.

Cybersecurity, Cyberattacks & Cyber Risk

Cybersecurity remains a leading risk trend for the third consecutive year. Cyberattacks continue to escalate in sophistication and scale, driving major operational and financial consequences. Several notable cyberthreats include AI-assisted cyberattacks, increased ransomware frequency, expanded attack surfaces due to digital transformation, third-party and supply chain cyber vulnerabilities (MNP)(Deloitte). With municipal elections taking place in many jurisdictions, cyber risk takes on added importance, as incidents can disrupt critical services, interfere with public communications, and affect access to accurate voter information, even without directly targeting election outcomes (Government of Canada - Protecting Elections).

During election periods, cyber incidents can have cascading effects, straining operational capacity, delaying service delivery, and undermining public trust (Government of Canada - Cyber Threats to Elections).

Insurance brokers such as Aon and Marsh highlight that ransomware, data breaches, and supply chain cyber incidents remain leading causes of operational disruption and financial loss. Public sector organizations remain particularly vulnerable, as they often manage critical infrastructure and sensitive data with limited resources. To strengthen cyber resilience, organizations should prioritize:

• Routine cybersecurity audits and vulnerability assessments.
• Investment in advanced threat detection and monitoring tools.
• Ongoing employee cybersecurity training programs.
• Stronger cyber requirements for vendors and partners.
• Providing staff training focused on phishing, social engineering, and misinformation awareness.

Maintaining a well-tested cyber incident response and communications plan is critical to managing high-impact, time-sensitive disruptions (Municipal World).

AI & Automation: The Dual Edge of Emerging Technologies

Artificial intelligence continues to reshape operations, offering transformative potential while introducing new risks. AI is identified as a top emerging risk category, driven by governance challenges, data privacy concerns, and reliance on automated systems (Deloitte)(KPMG)(MNP).

In an election year, AI-related risks extend beyond internal operations. AI tools can accelerate the spread of misinformation or disinformation, enable deepfake content, and complicate public communications during periods of heightened scrutiny. Without appropriate oversight, these risks can contribute to disruption and erode confidence in public institutions and services (Government of Canada - Cyber Threats to Elections) (Government of Canada - Protecting Elections).

AI provides major benefits such as predictive risk intelligence, automated reporting and monitoring, enhanced decision-making capabilities, and early detection of anomalies or operational disruptions. However, organizations must also address the risks associated with AI such as bias and fairness issues in AI systems, data quality and accuracy challenges, governance gaps and lack of AI oversight, ethical and legal concerns surrounding transparency, and increased exposure to AI-enabled cyberattacks.

Best practices include:

• Conducting regular audits of AI tools for fairness and performance.
• Establishing clear governance frameworks and usage guidelines.
• Ensuring transparency and explainable in AI-driven decisions.
• Collaborating across IT, legal, and compliance teams to develop ethical AI policies.

Insurance Market Pressures & Risk Transfer Challenges

Insurance markets continue to experience significant pressure as catastrophic losses, inflation, and climate volatility drive reduced capacity and higher premiums. Organizations should expect more stringent underwriting requirements, increased scrutiny of operational controls and risk documentation, reduced coverage availability, and rising premiums and higher deductibles (Marsh)(MNP). 

Aon and Gallagher emphasize that insurers are increasingly focused on risk quality, loss history, and documentation when evaluating coverage.

To remain competitive for coverage, policyholders should adopt a “Best in Class” approach:

• Strengthen safety programs and risk mitigation initiatives
• Enhance documentation and data quality for underwriting
• Implement dedicated risk and claims management systems
• Ensure compliance with insurer cybersecurity requirements
• Demonstrate proactive, organization-wide risk management practices

Strong risk information is now a critical asset in navigating insurance markets.

Operational Resilience & Business Continuity Demands

Disruptive events are occurring more frequently, prompting organizations to prioritize operational resilience. Operational resilience is now a strategic priority as organizations face overlapping risks from cyber incidents, climate events, workforce disruptions, and supply chain instability. Resilience goes beyond traditional business continuity planning (Deloitte).

Leading organizations are focusing on their ability to anticipate, withstand, recover from, and adapt to disruption.

Priorities for 2026 include:

• Strengthening business continuity plans and testing them regularly
• Assessing dependencies across operations, supply chains, and technology
• Ensuring data access and systems remain functional during disruptions
• Enhancing communication and crisis response coordination
• Integrating resilience into enterprise risk and strategic planning processes

Resilient organizations are better prepared to respond quickly, protect stakeholders, and ensure uninterrupted delivery of critical services.

Conclusion

As we enter 2026, the risk landscape continues to evolve rapidly, shaped by climate pressures, technological disruption, cyber threats, insurance instability, and operational challenges. ESG expectations are rising, cyberattacks are becoming more sophisticated, AI is transforming operations, insurance markets remain strained, and operational resilience has become a strategic imperative.

Organizations that take proactive action in these areas — investing in resilience, leveraging technology, and strengthening governance — will be better positioned not only to mitigate risks but to uncover new opportunities.

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