A rapid escalation and convergence of AI, geopolitical risks and regulations is causing businesses to face permanent high-risk environment, according to a new research by global law firm Clyde & Co.
The 33-page new research study “The 2026 Corporate Risk Radar – Navigating Risk Without Respite” draws on the perspectives of 700 global business leaders, including board members, C suite executives and General Counsel across ten sectors and eight regions. It assesses the risks shaping organisations in today’s environment and assesses how prepared leaders feel to respond.
A press release by Clyde & Co said, “86% of business leaders now rate technological risk as high impact, up from 46% last year. 72% say geopolitical risk is having a direct commercial impact, up from 49% and 85% cite regulatory and compliance burden as high impact, up from 54%.
“Four in five organisations say geopolitical shifts are influencing where and how they operate globally
And six in ten say the complexity of overlapping risks is the biggest barrier to managing them effectively.”
The respondents represent organisations with an average global turnover of $14.7bn. The findings suggest risk is no longer being experienced as a series of isolated challenges. Instead, business leaders are increasingly dealing with risks that overlap, compound and trigger wider operational, commercial and reputational consequences.
However, despite the rising pressure, confidence remains high. 95% of organisations say they are confident in management’s ability to identify and mitigate material risks, suggesting many businesses are continuing to invest in preparedness even as the environment becomes harder to predict.
Geopolitical volatility is now having a more direct commercial impact on business, with 72% of organisations saying it is affecting performance, up from 49% last year. Four in five say geopolitical shifts, trade policy changes and evolving tariff environments are materially influencing where and how they operate globally.
The pressure is not expected to ease. 73% of business leaders say deglobalisation driven by geopolitical decisions is creating uncertainty that could materially affect growth over the next five years, while 60% expect conflict escalation and international instability to have a significant impact on their business in the next 12 months. As a result, organisations are restructuring operations to reduce exposure to single markets, suppliers and jurisdictions.
Technology risk saw the largest increase of any category in this year’s research, with 86% of leaders rating it high impact, compared with 46% in 2025. As AI adoption accelerates, governance is struggling to keep pace, with 76% of organisations saying AI, data privacy and cybersecurity requirements are evolving rapidly, but only 68% have a mature AI governance framework in place.
This comes as 79% of leaders say AI and new technology will significantly influence their business over the next five years.
Regulatory requirements are expanding rapidly across jurisdictions, increasing both compliance pressure and exposure to reputational damage. 85% of leaders now rate regulatory and compliance burden as high impact, up from 54% last year, while 82% say regulatory obligations are influencing their organisation’s ability to invest in and grow the business.
As scrutiny intensifies, regulatory failures are increasingly translating into reputational damage, investor pressure and loss of trust.
The biggest pressure points include technology implementation and systems integration (72%), alongside skills shortages and transformation risk, showing how wider external disruption is increasingly playing out through delivery, execution and business change.