Strategic risk can determine an organization’s long-term trajectory. It stems from consequential choices—where to compete, which technologies to back, how quickly to scale—and from external forces beyond management’s control, such as market shifts, regulatory change, and geopolitical dynamics. To get a clearer picture of what’s top of mind, we recently conducted a poll to understand which risks organizations are prioritizing most.
According to our poll, 45% of respondents said cyber threats and data breaches are their biggest concern. Rising insurance costs came next at 24%, followed by litigation and liability at 22%, and supply chain disruptions at 9%.
These results highlight some of the critical challenges businesses are facing today and underscore the importance of proactive strategies to manage these strategic risks effectively.
Cyber threats and data breaches: The foremost concern
Cybersecurity continues to be a major risk as our world becomes increasingly digital. A data breach happens when sensitive information—like personal data or proprietary business information—is accessed or shared without permission. The fallout can be serious, including financial losses, damage to your reputation, legal penalties, and operational headaches.
Cyber attackers use tactics like phishing, ransomware, malware, and insider threats to find weak spots. Often, human error and technology gaps make things worse. To protect yourself, it’s recommended to have a layered defense: strong identity and access controls, regular software updates, employee training, and advanced tools like encryption, firewalls, and intrusion detection systems.
Even with safeguards in place, cyber threats remain a constant. That’s why having a clear incident response plan is key—knowing what to do after a breach, including containment, notification, and recovery steps. Continuous monitoring, threat intelligence, and automation can also boost your ability to detect and respond quickly.
Rising insurance costs: A growing financial challenge
Rising insurance costs emerged as the second-most-prioritized concern among nearly a quarter of the organizations we polled. Premiums are going up due to factors like inflation, an aging workforce, increased use of medical services, specialty pharmacy trends, and provider consolidation.
Changes in policies—like subsidy expirations and new coverage mandates—also play a role. These cost pressures affect not just health insurance, but property, casualty, and liability coverage.
To manage these rising costs, employers might consider strategies like value-based insurance design, site-neutral payment policies, narrow or tiered networks, and advanced primary care models. Pharmacy management, including formulary discipline and biosimilar adoption, is also important. Plus, improving administrative efficiency through transparency, fraud detection, and vendor performance guarantees can help keep expenses in check.
Understanding market reforms like reinsurance, risk adjustment, and public options can also guide smarter purchasing decisions and advocacy efforts. Ultimately, balancing cost control with quality and access is key.
Litigation and liability: Managing legal exposure
Litigation and liability risks came in at 22% in our poll, showing that legal exposure remains a significant concern. Litigation risk means the chance of facing legal claims from business operations, contracts, regulatory issues, or other disputes.
Factors that increase this risk include weak risk management, non-compliance with regulations, and changing legal standards. The consequences can be costly— opening your organization up to legal system abuse, financial penalties, reputational damage, and operational disruptions.
To reduce litigation risk, it’s recommended to have strong risk management practices, involve legal counsel early in risk assessments, and train employees to recognize and avoid potential issues. Businesses might also consider litigation risk insurance to help transfer some of the financial burden and develop clear policies to minimize vulnerabilities.
Supply chain disruptions: Managing operational continuity
While supply chain disruptions ranked lowest in our poll, at 9%, their impact can be significant. Events like natural disasters, economic shocks, pandemics, tech failures, or cyber incidents can interrupt the flow of goods, services, and information—leading to delays, higher costs, and strained supplier relationships.
Recent examples like the COVID-19 pandemic, the Suez Canal blockage, and severe weather events show how local issues can ripple across the globe.
To build resilience, organizations should map their supplier networks to spot vulnerabilities, diversify suppliers, build strong partnerships, and use technology for real-time visibility and analytics. Having flexible inventory and logistics plans, scenario planning, and clear response playbooks also helps keep things running smoothly.
Good governance, employee training, and aligning insurance coverage with identified risks further support continuity and recovery.
Integrating risk management for a resilient future
Our poll and industry insights show that while cyber threats top the list, rising insurance costs, litigation exposure, and supply chain disruptions are also critical challenges. Taking a holistic approach to managing strategic risk— covering prevention, detection, and response—is essential.
Preparing for uncertainty requires building adaptability, and by understanding these strategic risks and applying best practices, businesses can protect their operations, safeguard their reputation, and position themselves for sustainable growth in an uncertain world.
