Risk Monitor

The Hartford's 2026
Risk Monitor Report

Data-driven insights to help reduce risk.

About The Report

The 2026 Risk Monitor surveyed more than 500 U.S. midsize and large business leaders to identify the top concerns shaping operations and future growth. The Hartford's specialists analyzed the findings to deliver actionable insights that help businesses navigate emerging challenges, inform decision-making and support long-term growth while staying productive and protected.

The 2026 Risk Landscape

What the Data Tells Us

In an increasingly complex operating environment, understanding leaders' top concerns helps inform risk planning as cyber and AI risks evolve and economic uncertainty, driven by inflation and tariffs, continues to shape business decisions.

Top Concerns for Business Leaders
Cybersecurity / cyberattacks
Economic trends, such as inflation
Regulatory environment/compliance
Supply chain disruption
Potential for worker injury
Role of AI/Generative AI
Cybersecurity / Cyberattacks
Cyber remains the most persistent and top-of-mind risk for midsize and large businesses, driven by ongoing concerns around phishing, ransomware and data breaches that can disrupt operations and damage trust. Despite mitigation efforts, many businesses still see cyber threats as an evolving and escalating challenge.
Economic Trends, Such as Inflation
Ongoing economic uncertainty, including inflation, continues to pressure businesses as they manage rising costs and plan for sustainable growth. These concerns influence both day-to-day operations and longer-term strategic decisions.
Regulatory Environment / Compliance
Concerns about regulatory complexity and compliance have increased compared to last year, reflecting a more challenging policy environment. Midsize and large businesses are focused on keeping pace with changing regulations while avoiding penalties and operational disruptions.
Supply Chain Disruption
Supply chain risks have grown significantly, with businesses worried about delays, cost increases and the ability to meet customer and project demands. These disruptions are closely tied to broader economic and geopolitical pressures.
Potential for Worker Injury
Worker safety remains a critical operational concern, particularly as organizations focus on reducing injuries, controlling workers' compensation costs and retaining talent. Many businesses are prioritizing safety training and procedures as key risk mitigation strategies.
Role of AI / Generative AI
While most businesses are adopting AI to improve efficiency and analytics, some still view it as a source of risk. Concerns center on data security, misuse, accuracy and the broader impact AI may have on operations and the workforce.
Navigate through the concerns

Business Leaders on Today's Top Risks

quote 1
“My biggest concerns are rising costs, sudden market changes, data security threats and staying competitive while adapting quickly to customer expectations and new technology.”
quote 2
“I'm worried that the market is experiencing too much volatility.”
quote 3
“A breach could damage our reputation and lead to costly regulatory fines.”
quote 2
“The potential for data breaches, ransomware attacks and unauthorized access to sensitive financial or client information.”
quote 2
“Data privacy, regulatory uncertainty, bias and misuse with AI. We don’t know how AI will affect the company, so we want to start slow and test run it.”
quote 3
“Both tariffs and supply chain issues are a big concern. Those are very rocky topics right now.”

Explore Top Risks of 2026

Select the icons to learn more about each risk.
Click the "X" to navigate back to all risks.
Cyber
Economic Trends
Legal System Abuse and Social Inflation
Supply Chain Disruption
Worker Safety
Artificial Intelligence

Cyber

Select a topic from the drop-down
The Risk

Cyber-related risks rank among the top concerns for business leaders, driven by the growing threat of hacking, phishing, ransomware and malware. When employee or client data is compromised, the resulting breaches can have lasting impacts for a company's reputation and the trust it has built with customers.

What We Hear

Year after year, cyber has been identified as a top concern for midsize and large businesses. With the advanced sophistication of recent cyberattacks, business leaders are concerned about their data.

My biggest concern is the risk of data breaches where sensitive information could be exposed. -U.S. Business Leader
Key Findings
56%
56% say cyber liability and data breaches are top insurance product focuses.
67%
67% have cybersecurity policies and procedures in place, while nearly one-third do not.
Future Focus

With cyber threats becoming more sophisticated and widespread, cyber liability insurance has emerged as a critical component of risk management, prompting 53% of business leaders to plan enhancements to their cyber policies in the coming year.

Specialized Insight

Ransomware attacks often force urgent business decisions and put critical data and operations at risk. Read how organizations can help prevent ransomware from holding their business hostage.

A solid cybersecurity strategy with the ability to pivot to changing threats is essential for any business. -Tony Dolce, global head of Professional Liability and Cyber at The Hartford
Learn More

As cyber risks continue to evolve, businesses need clearer insight into emerging threats and how to manage them. Explore The Hartford's library of cyber insights articles.

When prevention alone isn't enough, businesses need coverage designed to help manage the financial and operational impact of cyber events. Learn more about The Hartford's cyber coverages and services.

Speed of response is critical, and companies could be wasting valuable time that could negatively impact their ability to recover as quickly as they could have. -Tony Dolce, global head of Professional Liability and Cyber at The Hartford

Economic Trends

Select a topic from the drop-down
The Risk

Economic uncertainty is a top risk concern for midsize and large businesses, as fluctuating economic conditions, trade policies and geopolitical pressures make it difficult for organizations to plan and operate with confidence.

What We Hear

With the ever-changing economic landscape across the globe, business leaders want to stay informed on how these trends can affect their operations.

The biggest concern is inflation affecting our company revenue and material costs. -U.S. Business Leader
Key Findings
63%
63% are concerned about tariffs, a significant increase from 2025.
43%
43% of business leaders identify geopolitical conflicts as a key concern.
Future Focus

Even amid economic, inflationary and geopolitical pressures, 85% of business leaders remain optimistic about growth over the next three years and are investing in technology, innovation and workforce expansion with a focus on proactive planning.

Specialized Insight

Today's risk environment is increasingly driven by macroeconomic and geopolitical forces, including global instability, inflationary pressure and evolving trade policies. As these forces converge, businesses are reassessing how they anticipate disruption, manage uncertainty and protect operations in a more interconnected and fast‑moving risk landscape.

Explore what is driving inflation in 2026 and beyond, from trade policy and geopolitics to labor markets, energy volatility and global realignment.

A fractured global order is reshaping the economic landscape, making geopolitical risk an increasingly important factor in inflation and growth. -Shailesh Kumar, head of The Hartford's Global Insights Center
Learn More

The Hartford's Global Insights Center delivers actionable macroeconomic, industry and geopolitical research to help midsize and large businesses look beyond global headlines. Learn more within The Hartford's Global Insights articles.

Explore the unique capabilities of The Hartford’s Global Insights Center.

Legal System Abuse and Social Inflation

Select a topic from the drop-down
The Risk

Business leaders express concern about compliance and the evolving regulatory environment, particularly as legal system abuse and social factors drive higher litigation costs, larger jury awards and increased legal exposure that can impact operating expenses and long-term stability.

What We Hear

Business leaders are navigating a fast-changing risk environment shaped by cyber challenges, regulatory change and operational disruption. Understanding these trends helps organizations better anticipate risk and plan with confidence.

Emerging cyber threats, regulatory and compliance risks, and business interruption risks are evolving quickly and could have significant financial and operational impact -U.S. Business Leader
Key Findings
64%
64% of business leaders are concerned about the risks to their company's reputation.
11%
11% of business leaders indicate that staying compliant with regulations and new laws is the primary risk they are most focused on.
Future Focus

As legal system abuse drives higher litigation costs and nuclear verdicts, business leaders are focusing on preparedness by strengthening risk controls, documentation and safety practices to reduce claim frequency and severity.

Specialized Insight

Ongoing abuse of the legal system leads to increased liability risks for businesses, as litigation costs rise and jury verdicts become larger. Legal reforms are important, and understanding their impact can help businesses make better decisions about risk, insurance coverage and long-term financial security.

Explore how third‑party medical financing is reshaping liability claims and driving higher costs for businesses.

Legal system abuse has contributed to a sharp rise in large verdicts and settlements, driving claim severity higher at a much faster rate than overall economic inflation. -Kevin LaFreniere, head of financial lines, liability and bond claims at The Hartford
Learn More

As legal system abuse continues to rise, businesses are facing increased liability exposure and costs. Read how legal system abuse affects liability exposures for businesses.

Legal system abuse reform isn't merely an insurance issue. It's a broader societal issue that desperately needs reform, especially since we all end up paying for the increase in costs. -Steve Deane, chief claims officer at The Hartford

Supply Chain Disruption

Select a topic from the drop-down
The Risk

As global operations grow more interconnected, the risk of business interruptions increases. Any disruption along the supply chain can swiftly affect operations, revenue and promises made to customers. So, it is essential for companies to recognize their vulnerabilities and prepare continuity plans.

What We Hear

As businesses look for ways to manage uncertainty and support long-term growth, some leaders are turning to targeted expansion strategies. One business leader shares how selective geographic growth can help diversify revenue and unlock new opportunities.

We are looking at selective expansion in western Europe to diversify revenue streams and tap into engaging market opportunities. -U.S. Business Leader
Key Findings
66%
66% of respondents cite business interruption as a top risk.
16%
16% of open-ended respondents indicate that their primary risk concern is supply chain disruptions and the potential inability to meet project deadlines.
Future Focus

While high costs, limited demand, regulatory complexity and geopolitical concerns lead some companies to scale back international operations, others are managing risk by leveraging technology, expanding into new markets and improving continuity plans to remain resilient during disruptions.

Specialized Insight

Supply chain disruption continues to be a critical driver of business interruption risk as global operations grow more interconnected and vulnerable to unexpected events.

Discover how understanding supply chain dependencies can help minimize the financial impact of business interruption.

The same rigor with which leadership runs a business should be applied to understanding your insurance program and how it interplays across various countries and geographies. -Kevin Nolan, head of multinational at The Hartford
Learn More

Explore how The Hartford supports U.S.-based businesses with international operations through multinational business insurance.

Discover insights that address timely issues facing U.S.-based businesses with locations outside the country or operations around the world.

Companies go through extraordinary efforts to expand globally, yet all too often they overlook a new strategy for insurance. -Kevin Nolan, head of multinational at The Hartford

Worker Safety

Select a topic from the drop-down
The Risk

Today's business leaders must balance talent priorities with the responsibility of keeping their workforce safe. Workers' compensation provides benefits to employees following a workplace injury or illness while helping businesses meet required coverage obligations. Risk mitigation strategies then extend that protection through strong safety policies, ongoing training and early detection of emerging risks.

What We Hear

Worker safety remains a top operational priority for many organizations, particularly in industries where jobsite risks are higher.

Employees [can get] injured on the job. We place a great deal of emphasis on safety. Safety on jobsites is one of our main focuses. It can also be a huge challenge. -U.S. Business Leader
Key Findings
55%
55% of respondents identify workers' compensation as a primary area of focus.
37%
37% identify the potential for workplace violence as a significant risk.
Future Focus

Leaders are prioritizing forward-looking approaches to risk mitigation, with 61% placing strong emphasis on workplace safety policies and procedures to better protect their workforce and operations.

Specialized Insight

While no technology can eliminate all risks, AI, telematics and wearable devices offer new ways to proactively manage workplace safety. As organizations refine their risk management strategies, integrating these tools can be a valuable step towards creating safer, more resilient workplaces.

Learn how AI, IoT and connected devices will be essential partners in reducing future injuries and illnesses on the job.

Safer workers are happier, more productive workers. When we do things to improve worker safety, we're improving their overall experience in the workplace. -Dan Campany, head of risk control services at The Hartford
Learn More

Learn how our Risk Engineering team helps businesses stay ahead of risk by identifying hazards, reducing exposures and building a safer workplace.

The Hartfords specialists have developed these articles to help business leaders support a safer workplace.

Artificial Intelligence

Select a topic from the drop-down
The Risk

Artificial Intelligence is reshaping the business landscape, with companies using AI technologies to boost efficiency and improve internal analytics. While most business leaders agree that AI offers more benefits than drawbacks, implementing these systems also brings risks such as cybersecurity threats, data privacy concerns, possible mistakes or oversights, misuse and future impacts on the workforce.

What We Hear

The rapid adoption and evolution of AI are adding new layers of complexity to protecting sensitive data, requiring organizations to stay vigilant as emerging technologies continually reshape defense strategies.

Having our clients' data and personal information compromised would be catastrophic. We are also concerned about the role AI will play in future cyberattacks and how to defend against them. -U.S. Business Leader
Key Findings
95%
While 95% of business leaders have begun integrating AI, 53% of that same group still view it as a potential risk. In fact, 20% of business leaders see negative AI impacts, such as misinformation or unethical use, as a rising risk over the next five to 10 years.
Future Focus

While midsize and large businesses continue to adopt AI amid concerns about security, misuse and workforce impact, adoption remains uneven, with 40% of non-adopters citing AI as unnecessary or irrelevant to their business.

Specialized Insight

As AI adoption accelerates to optimize workflows and support data analysis, organizations are increasingly focused on managing implementation risks. Learn why collaboration is a critical part of risk mitigation during AI implementation.

You need to ensure that collaboration comes from across your entire company, specifically bringing the business team and IT team together while including corporate services such as legal, compliance, governance and risk management at the very beginning of your AI implementation journey. -Andrew Zarkowsky, head of AI underwriting for middle and large business at The Hartford
Learn More

The Hartford’s specialists have developed these articles that explore how emerging technologies can help business leaders strengthen risk management and workplace safety:

As technology‑driven risks continue to evolve, businesses need protection that goes beyond prevention. Learn more about The Hartford's technology insurance coverages and services.

Connecting Risk to Protection

As today's risk landscape grows more complex and interconnected, business leaders are reexamining whether their coverage truly aligns with the challenges they face. From cyber threats and economic volatility to regulatory pressure and operational disruption, risks are no longer isolated events but compounding forces that can quickly escalate. This makes coverage decisions more critical than ever, serving not just as protection after a loss, but as a foundational part of how organizations plan, adapt and stay resilient.
 
 
Select the coverage to learn how it supports today’s risks.

Workers' Compensation

Why it matters now:
  • Workplace injuries remain a top operational and talent risk
  • Injuries can disrupt productivity, strain teams and impact employee retention
Risk prevention and preparedness:
  • Safety training and injury prevention programs
  • Building a strong safety culture that supports employees and operations
Turning risk into readiness:
  • Worker safety sits at the intersection of people, productivity and business continuity, making prevention a critical part of long-term resilience

Property

Why it matters now:
  • Business interruption can occur even without direct physical damage
  • Supply chain delays and infrastructure issues can impact revenue and service delivery
Risk prevention and preparedness:
  • Preparing for events that limit access to facilities, materials or systems
  • Strengthening the ability to adapt operations quickly during disruption
Turning risk into readiness:
  • Property risk shows how physical events can quickly escalate into widespread operational disruption, reinforcing the need for continuity-focused planning

General Liability

Why it matters now:
  • Social inflation is driving higher claim costs and larger verdicts
  • Litigation and regulatory requirements continue to evolve
Risk prevention and preparedness:
  • Strengthening risk controls and documentation
  • Monitoring legal and regulatory trends to better evaluate exposure
Turning risk into readiness:
  • Proactive liability planning helps businesses reduce financial uncertainty and protect reputation in an increasingly complex legal environment

Commercial Auto

Why it matters now:
  • Distracted driving and heavier traffic increase accident risk
  • Inflation continues to drive higher repair and replacement costs
Risk prevention and preparedness:
  • Driver training and clear safety expectations
  • Ongoing monitoring to identify risky behaviors and reduce incidents
Turning risk into readiness:
  • Managing vehicle-related risk requires addressing both human behavior and rising costs to prevent losses from escalating

What This Means for Business Leaders in 2026

With more than 500 business leaders surveyed, the 2026 Risk Monitor reinforces the value of ongoing risk education in helping organizations navigate change with greater confidence. As risks evolve and new threats emerge, specialized insights and perspectives play a critical role in supporting informed decision-making, strengthening preparedness and building trust across the business ecosystem.

 
 
 
1 Findings based on a February 2026 study conducted by The Hartford across business leaders in midsize to large businesses with revenue greater than $10 million.