Preparing Your Risk Management Program for 2026 and Beyond

Risk management is evolving at breakneck speed. As we look toward 2026 and beyond, organizations face a landscape marked by persistent volatility, emerging threats and rising expectations for resilience. From cyber risks and supply chain disruptions to regulatory changes and workforce transformation, the challenges for risk managers are more complex — and more interconnected — than ever before.

The New Risk Management Reality

Today’s risk environment is defined by unpredictability. Geopolitical instability, climate volatility and rapid technological change are reshaping the risk equation. As highlighted in our recent blog series, risk managers must contend with everything from catastrophic weather events and litigation surges to the expanding role of AI and digital transformation. Continuous monitoring, scenario planning and agile response should replace static risk registers and annual reviews to keep up with rapidly shifting environments.

Organizations are also grappling with new demands for transparency, data-driven decision-making and cross-functional collaboration. The risk manager’s role is expanding — no longer just a guardian against loss, but a strategic advisor who helps shape business decisions and drive value.

How Leading Companies Are Preparing

Forward-thinking organizations are taking proactive steps to address these challenges. They’re investing in advanced analytics to gain real-time visibility into exposures, leveraging technology to automate risk assessments and embedding risk analysis into every facet of the business. As Sedgwick’s experts note, the most resilient companies are those that treat risk management as a core business function, not a siloed department.

Building Resilience: The Cornerstone of Preparedness

Resilience is more than a buzzword — it’s the foundation of effective risk management. To be resilient means to have the fortitude to withstand shocks, the redundancy to ensure continuity, the flexibility to adapt, the ability to mobilize resources quickly and the capacity for readjustment as conditions change.

• Fortitude: Develop robust systems and processes that can absorb disruptions without collapsing. This includes strong governance, clear escalation protocols and a culture of accountability.
• Redundancy: Build backup capabilities — whether in supply chains, IT infrastructure or staffing — to ensure critical functions can continue even if primary resources are compromised.
• Flexibility: Design risk management programs that can pivot in response to new threats. Regularly update policies, training, and technologies to stay ahead of the curve.
• Mobilization: Establish rapid response teams and clear communication channels to act decisively when incidents occur.
• Readjustment: After a disruption, conduct thorough reviews to learn from the experience and refine your approach for the future.

Ensuring your Company is Ready

Building resilience in risk management starts with a deep understanding of your business and a commitment to continuous improvement. Here’s how organizations can approach readiness in a way that is both strategic and actionable:

Know your business: Resilient risk management begins with data. Companies must obtain, evaluate and synthesize information from across the enterprise — claims, operations, finance, supply chain and more. This data forms the foundation for identifying reasonable risks and understanding which exposures are most critical. It’s not enough to rely on historical trends; organizations must actively monitor emerging threats and adjust their risk profiles accordingly.

A thorough inventory of current risk management programs is essential. What controls are in place? Where are the gaps? How do these programs align with the organization’s risk appetite and strategic objectives? Risk analysis should be embedded as a core part of the business, not just a compliance exercise. This means integrating risk thinking into daily operations, project planning and decision-making at every level.

Evaluating and managing risk: Once exposures are identified, companies must analyze current results and trends. Are claims rising in certain areas? Is litigation becoming more frequent? Are supply chain disruptions impacting service delivery? Predictive analytics and scenario planning can help organizations anticipate future risks and prepare accordingly.

Defining risk appetite is a critical step. Not every risk can or should be eliminated; some are necessary for growth and innovation. Executive teams must work together to determine which risks are acceptable and which require mitigation. This collaborative approach ensures that risk management is aligned with business goals and that resources are allocated where they will have the greatest impact.

Ensuring executive-level cooperation: Risk management cannot succeed in isolation. Executive-level cooperation is vital to ensure that risk analysis informs business decisions and that leaders understand the potential impact on operations, reputation and financial performance. This means regular communication between risk managers and senior leadership, transparent reporting of risk metrics and a shared commitment to resilience.

Leadership should champion a culture where risk management is seen as a driver of value, not just a safeguard against loss. When executives prioritize risk analysis, it sends a clear message throughout the organization that preparedness and responsiveness are essential for long-term success.

Telling your risk management story: Finally, organizations must be able to tell their risk management story, both internally and externally. Comparative analysis helps benchmark progress against industry peers and highlights areas for improvement. Sharing the impact of results — such as reduced claim durations, improved closing ratios or successful mitigation of catastrophic events — builds credibility and support for ongoing investment in risk management.

Effective storytelling also helps engage stakeholders, from employees to board members to external partners. By demonstrating how risk management contributes to business resilience, organizations can foster a culture of continuous improvement and position themselves as leaders in their field.

In summary:

Ensuring your company is ready for 2026 and beyond means making risk management a living, breathing part of your organization. It requires data-driven insights, cross-functional collaboration, executive engagement and a commitment to transparency and learning. By taking these steps, companies can build the resilience needed to thrive in an era of constant change.