Geopolitics, trade policy and cyber risks rewire corporate risk maps

Sedgwick has released its 2026 risk forecasting report, outlining how organizations are preparing for rising exposures in artificial intelligence, catastrophe losses, supply chains, talent and geopolitical volatility.

“Navigating risk in 2026 is about planning for what you don’t know is coming, not just what keeps you up at night right now,” said Mike Arbour (pictured above), Sedgwick chief executive. He said the report is intended to act as a guide for companies across sectors as they reassess their risk frameworks.

AI risk, governance and insurance implications

Artificial intelligence risk and governance is one of the core themes. The survey found that 70% of responding organizations already have AI risk committees, signaling that formal oversight structures are becoming standard at large corporates.

Despite that, only 14% said they are fully prepared for AI deployment, and 31% reported they are struggling to keep pace or are behind in AI preparation. Respondents cited the speed of technological change and regulatory uncertainty as central implementation challenges, even as they move to embed governance and controls.

The report notes that AI is reshaping both claims handling and broader risk functions. For insurers and brokers, corporate clients’ uneven AI readiness may influence underwriting, risk engineering and the development of advisory or parametric solutions.

Catastrophe pressures and labor constraints

Catastrophe risk and recovery constraints form a second area of concern. Sedgwick said extreme weather, property exposure and labor shortages are increasing costs and lengthening recovery timelines across industries. It indicated that these pressures are adding complexity to claims assessments, reinstatement and business interruption.

In the survey, 75% of respondents reported some degree of labor friction linked to immigration-related access hindrances. A further 11% said they are facing critical or severe labor access challenges due to immigration-related impacts, suggesting that staffing constraints are compounding catastrophe response and rebuilding efforts.

At the same time, 76% said they expect moderate to severe insurance pressure from catastrophe challenges. That expectation is likely to feed into purchasing strategies, retentions and alternative risk transfer structures as buyers negotiate in a hard or recalibrating property market.

Supply chain volatility and cyber exposure

Supply chain disruption and adaptation also continue to rank high on corporate risk agendas. Sedgwick’s report points to geopolitical instability, changing trade policies, regulatory shifts and global events as key drivers of volatility in complex, multi-tier supply chains.

Among surveyed Fortune 500 companies, 66% reported a negative impact from US trade policies. In addition, 65% cited economic and geopolitical volatility as their primary supply chain concern, indicating that macro-level uncertainty is reshaping sourcing and inventory decisions.

Cybersecurity is also entrenched as a structural issue in supply chains, with 38% of respondents flagging cyber risk as a core vulnerability. For insurers, this intersection of cyber, trade and contingent business interruption exposures may influence coverage design, accumulation controls and wording scrutiny.

Talent, leadership and technology in the workforce

The report highlights ongoing workforce transformation as another cross-cutting trend. Sedgwick said organizations are having to reconsider leadership expectations, people skills, team structures, career mobility and mentorship as technology, including AI, changes job design and employee expectations.

In the survey, 32% of executives cited changing employee expectations as their leading talent challenge. A further 47% pointed to difficulties in transferring leadership skills as a barrier to organizational success, underlining succession and capability gaps in senior and middle management.

Technology-enabled tools for injury reduction and safety culture are also gaining attention. Around 20% of respondents identified virtual reality and augmented reality as a priority tool in reducing injuries, signaling future demand for related risk engineering and workers’ compensation solutions.

Global risk, resilience and insurer engagement

Sedgwick said persistent instability is now a defining feature of risk strategies, with organizations exposed to multiple shocks at once and risk exposures rising faster than preparedness in many cases.

Only 3% of surveyed organizations said they are fully prepared for all global risks. Meanwhile, 56% cited geopolitical instability as their top risk, making it the single highest concern across sectors and regions in the study.

Half of respondents, 50%, identified cyber as a critical risk exposure, reinforcing its position as a board-level issue that intersects with operational resilience, supply chains and reputation. Sedgwick said agile scenario planning and staged response strategies will be important as firms recalibrate their risk appetites.

Outlook for clients and markets

“Anticipating what’s next and navigating the unexpected will be the differentiators between success and failure in 2026,” said Dave Arick, managing director, global risk management at Sedgwick.

He said the firm is working with clients to help them adapt and innovate in what he described as a rapidly evolving environment.

The report suggests that insurers, brokers and risk managers will need to integrate AI governance, catastrophe readiness, supply chain resilience, workforce strategy and geopolitical analysis into a more unified risk framework.

Sedgwick said that organizations able to connect these themes are more likely to maintain continuity and meet stakeholder expectations in the coming year.