High Risk Demands Active Review
In 2026, risk and volatility will dominate the news and landscape however the sources will not necessarily be financial. The 2026 World Economic Forum Global Risk Report identified Geoeconomic Confrontation as the top near term risk reported by respondents, followed by State-Based Armed Conflict.
Fully 82% of the respondents answered that they saw the near term state of the world as either Unsettled (40%) or Turbulent (42%) during the next 2 years. Over a 10-year horizon, 89% of respondents expect the word to be either Unsettled, Turbulent, or Stormy.
Given these challenging external environments it’s more critical than ever that companies and Boards review their own risk exposures across a swath of relevant metrics and lenses. Active monitoring and regular review will keep company risks within the Board’s risk appetite and tolerance as well as alerting management and the Board to critical risk changes.
Learn more about the Global Risk Report here.