Global Risk Study

Supply chain: the risk that never sleeps

In 2026, supply chain risk isn’t a passing storm — it’s the climate we live in.

Geopolitical tensions, trade policy shifts, regulatory upheaval, and global events have made disruption the norm. From regional conflicts that complicate claims servicing to cyber threats and logistics breakdowns, vulnerabilities are multiplying and the old playbook no longer applies.

Organizations are racing to diversify suppliers, strengthen compliance, and embed resilience into every link of the chain. Agility, collaboration, and technology investment aren’t optional — they’re survival strategies. The question isn’t whether disruption will happen, but how prepared you are to turn it into opportunity.

This section explores the trends and priorities redefining supply chain management for the year ahead — and how leaders can build systems that withstand volatility, protect continuity, and deliver consistent service in an increasingly complex global environment.

Supply chain under pressure

Supply chain risk has become inseparable from geopolitical and trade policy dynamics. Two-thirds of organizations report negative impacts from U.S. trade policies, while geopolitical instability and supplier concentration top the exposure list. Cyber threats represent an emerging structural vulnerability across supply networks.

Top risk drivers

Geopolitical instability

65% cite economic and geopolitical volatility as primary supply chain concern

Supplier risk

46% identify supplier concentration and reliability as critical exposure

Cyber threats

38% flag cybersecurity as structural supply chain vulnerability

Trade policy impact

66%

report negative impact from U.S. trade policies, with only 3% experiencing positive effects. The pain is most acute in manufacturing (83% negative) and retail (78% negative).

Disruption outlook

54%

expect moderate to significant logistics disruptions in the next 12 months, driven by policy uncertainty and geopolitical tensions.

Diversification response

59%

are actively prioritizing supplier diversification and tracking progress, moving from intent to measurable action.

Supply chain risk has become a defining challenge for 2026, fueled by global volatility, shifting trade policies, material shortages and labor constraints. At Sedgwick, our leaders agree: disruption is now the norm, not the exception. Geopolitical instability, cyber threats and legacy systems are amplifying vulnerability across industries and government. The organizations that will thrive are those that prioritize agility, diversify suppliers, and invest in proactive planning and technology.

At Sedgwick, we see this moment as a call to break through barriers, embrace complexity – and turn disruption into a strategic advantage.

Tariffs and trade policies are reshaping supply chain risk.

Organizations must navigate constant uncertainty as global trade rules shift, driving up costs and complicating sourcing.

Geopolitical instability is a persistent disruptor.

International tensions and political upheaval can upend supply chains overnight, demanding rapid adaptation and contingency planning.

Supplier diversification is now a strategic imperative.

Relying on concentrated suppliers is no longer viable — leaders are actively expanding and tracking their supplier networks to build resilience.

Cyber threats and legacy systems expose new vulnerabilities.

Modern supply chains face rising cyber risks and outdated technology, making investment in security and modernization essential for survival.

More to consider:

01

Supply chain disruptions have downstream impacts on labor, safety and claims costs.

02

Supply chain disruption is especially acute for manufacturers, with volatility in rare earth minerals and other critical inputs.

03

Globalization and inflation are driving companies to seek new suppliers, often in different countries, which can introduce quality risks and compliance challenges. Supplier verification and quality assurance are more critical than ever to avoid recalls and reputational damage.

04

Government agencies face similar supply chain pressures as the private sector, but with added complexity from policy changes and administrative shifts.

Text relating to various global risk trends.