Businesses are increasingly aware of rising technology, regulatory and geopolitical risks, but few are confident in their ability to manage them, according to a report released Tuesday by Hub International.
The report is based on a survey of business leaders in 10 industry sectors in the U.S. and Canada.
About 92% of respondents fear that rising operating and labor costs could affect profitability in 2026, but only 22% are fully confident in managing them, the survey found.
Technology, cyber and AI-related risks were ranked as a top threat by 60% of organizations, but only 21% feel fully confident in their company’s strategy to mitigate those risks.
About one-third (34%) of organizations see geopolitical instability as a threat to profits, up from 19% last year, but only 15% feel completely confident in managing that risk.
The survey revealed that half (50%) of respondents operate at a basic risk maturity level, focused on compliance and safety, while only 5% reported advanced risk maturity.
Just 15% of business leaders believe risk management is a shared responsibility among employees, the report said.
“Most organizations know about the cracks in their foundation, but awareness alone doesn’t translate into readiness,” Hub Chairman and CEO Marc Cohen said in a statement accompanying the report.