In a world of overlapping disruptions, the Gallagher Business Risk Evolution Survey demonstrates that organizations that adapt and employ proactive measures have a better ability to absorb shocks, recover faster and sustain momentum where others stall.

Key insights

  • Pre-loss investments in risk management strategies pay off. Companies with more embedded risk management are better prepared to adapt and respond to disruptions.
  • Insurance strategies have evolved to support business transformation, with an increased uptake of new products and better alignment with growth plans.
  • Organizations report greater risk tolerance, and many are using disruption as permission to innovate, diversify and explore new revenue streams.

One of the most notable business shifts in recent years is the way organizations perceive and act on risk. Surveyed business leaders who considered themselves more risk tolerant (77%) mostly credited their pandemic-era decisions for helping them adapt and grow when others are more tentative.

Across industries and company sizes, businesses had to navigate a riskier landscape. Some found new revenue streams or diversified operations, while others struggled to stay afloat.

Perhaps driven by the challenges, organizations significantly strengthened their risk management capabilities over the last five years. As a result, most now feel well equipped to handle future disruptions stemming from today's leading risks — with 96% prepared for digital/cyber threats, supply chain issues and business interruptions; 91% ready to address people-related risks; and 90% confident in managing AI and automation challenges.

“
Organizations significantly strengthened their risk management capabilities over the last five years.

This shift has been evident in how companies have approached the polycrisis landscape that has altered our operating environment. A third of large businesses reported being willing to take on more risk — twice the rate of small firms.

Access to capital has empowered larger organizations to take calculated risks, underpinned by a mindset that sees measured risk as essential to growth. For smaller firms, insurance has become a critical tool, serving as contingent capital to support expansion into new markets.

These organizations are actively managing uncertainty. They've invested in good risk management strategies, like hiring expert talent, investing in risk managers, expanding their insurance coverage, driving growth through digital innovation and diversifying both offerings and operations.

"The organizations that are truly resilient look to maximize opportunities in periods of disruption — to catapult growth and to engage in things that maybe they thought were off limits before," explains Lisanne Sison, managing director for Enterprise Risk Management at Gallagher. "It gives them permission to innovate in ways that they might not feel they could when things are calm, easy and normal."

As one business leader put it, these proactive measures have given them "a clearer, more predictable view of the future moving forward," so they know where it's feasible to take on risk. This perspective reflects a more opportunity-led relationship with risk.

Risk managers are increasingly present in the boardroom, contributing to more informed and strategic decision-making. "Organizations that proactively manage their risk are better prepared for and more resilient during times of crisis and change," says Shannon Gunderman, managing director of Public Sector and K-12 Education at Gallagher.

There's growing recognition that risk and opportunity are two sides of the same coin. Risk is no longer seen as something just to avoid, but as a driver of growth and innovation. This mindset is shaping how organizations prepare for and respond to future disruptions.

Such a mindset can be seen in everyday responses to loss and loss prevention, according to Glenn Drees, managing director, Food and Agriculture at Gallagher.

"A food manufacturing client recently experienced an explosion and fire at one of their facilities," he says. "The company had $25 million worth of stock in a freezer and no power. Luckily, they had a contingency plan to get an emergency generator. The power was back on within 24 hours and the goods didn't perish.

"Five years ago, would they have had the same attitude toward business recovery that they do now? The agility of our clients is improving, but also the way they think is improving, because of these events they've been through."

Experiences across sectors

Across industries, the past five years have tested resilience. From supply chain shocks to staffing shortages and climate-driven catastrophes, organizations have had to rethink how they manage risk. The importance of risk management strategies has grown as well, with businesses incorporating safeguards both in their operation and innovations. The following examples illustrate how various industries are integrating risk thinking into their core operations.

Building resilience ahead of challenges

Trying to anticipate the next crisis is less important than ensuring that business continuity and crisis response teams are prepared to respond. "You need an all-hazards approach because you have to be able to manage the unexpected," says Bob Perlman, area executive vice president, Business Continuity and Resilience, Gallagher Claims and Risk Consulting.

This kind of planning acts as a safeguard, an "insurance for insurance," to secure the foundation for a resilient culture. "Despite the nature and origin of the crisis event, one has to have tools in place to manage or mitigate the impact," Perlman explains. "That's why boards, investors, insurers and customers want to ensure that robust business continuity plans are in place."

A clear example of this comes from a large US-based chemical company that's building production plants around the world so it can localize its business in all the territories where it operates. This deliberate business continuity strategy has helped this company avoid the impact of long-term volatility in the market — like tariffs, supply chain shortages and geopolitical issues — and can be regarded as a proactive risk-mitigation tool.

"In following their business plan to sell locally or regionally, they have been relatively unaffected by tariffs," explains Perlman.

An effective contingency plan begins with a business impact analysis to identify the company's critical processes that drive value and sustain operations. Yet, resilience demands a coordinated, cross-functional effort throughout every stage of the business lifecycle.

The Gallagher global survey insights point to an evolving risk appetite and reveals a decisive shift in attitudes:

Integrated resilience: Insurance and beyond

The businesses that weathered recent turbulence most effectively were those that used enterprise risk management strategies to facilitate swift decision-making and strategic pivots. In today's unpredictable environment, the role of brokers as partners in prevention and response has expanded significantly.

As uncertainty grew, so did appreciation for insurance. In fact, 39% of the surveyed companies that changed their revenue makeup over the last five years bought new types of insurance to better align with evolving risk profiles.

The insurance market responded in kind. "The past five years have been a great stress test: some came out with bruises, but most came through it largely unscathed," says Kroll. "And brokers have been instrumental in this transition, helping businesses understand the challenges and sharing the risk responsibility."

As companies shifted focus and reconfigured their business models, they invested in insurance instruments that supported these transitions. Their risk exposures changed, and insurance strategies had to evolve in parallel.

With more versatile offerings available, over half of large businesses — particularly in the US — now feel better protected than they did five years ago. In fact, 90% have sought strategic advice from insurance experts to align coverage with growth plans.

Brokers played a critical role in this process. They helped ensure insurance programs were fit for purpose, identified coverage gaps and provided insights that supported strategic decision-making. This guidance was especially valuable for mid-sized companies without dedicated internal risk functions.

"It's not that insurance policies are changing, but the associated risks require more careful consideration," explains Tracy Keep, managing director, National Construction practice at Gallagher, UK Retail. "Our role is to take a more holistic approach, advising and guiding people on these matters and ensuring that their policies adequately respond to them."

"Having a broker that understands the industry — and not just the insurance product, but all the other existential forces working against our clients — means we can be champions in that room," says Kroll. "We educate clients on taking on more risk, on different ways to spend a dollar in the insurance marketplace — whether it's alternative risk, commercial placement or captive solutions. That's a critical part of overall strategy diversity."

The past five years have redefined the importance of having a risk management strategy in place. Preparing for the polycrisis — and ensuring business continuity — is no longer just a back-office function, but an essential cornerstone of growth planning, operational resilience and continuous innovation.

How companies are reshaping their risk mindset*

Risk management strategies: From cost center to strategic growth partner

6 main risk management strategies for an agile, resilient response plan

  1. Review pandemic-driven initiatives: Assess their long-term value and whether they need to be adjusted to make them a permanent component of your risk strategy.
  2. Focus on digital and cyber risks: Many business leaders see cyber as the next significant source of disruption.
  3. Invest in strategies to increase agility and adaptability: These strategies include hiring dedicated risk managers or business continuity professionals. Smaller organizations can work with trusted brokers and advisors to fulfill this role.
  4. Don't ignore the risks associated with your people strategy: Focus on employee retention, mental health and skill gaps.
  5. View risk as an opportunity to drive growth and innovation: Be prepared to pivot business models and strategies to leverage market strengths.
  6. Invite senior risk managers into the C-suite: They can provide a risk-focused perspective on business decisions.

The constant challenges global shocks present have brought forth new strategies and risk management frameworks — without internal silos and with proactivity, as compared to the earlier reactive practices. Increasingly, risk managers are playing a central role in this new framework.

Before COVID-19, risk management was often transactional. "It was rare for risk managers to be invited into the C-suite," recalls Kroll. "Now, they're helping shape strategic direction."

Tangibly, nearly one in five firms reported adding personnel for risk resilience, and 76% said they opted to retain the expanded risk capabilities developed during the pandemic. More than half plan to keep these roles for at least five more years.

For smaller organizations, where dedicated risk teams are less common, insurance brokers are increasingly seen as strategic advisors, offering insights that inform decision-making and drive resilience.

"Risk management strategies support institutions in weathering the storm," Kroll says. "The goal isn't just to react — it's to get through it with as even a flow as possible. Risk managers have been a guiding light in helping manage those business decisions."

Across industries, risk professionals are now seen as trusted advisors, guiding leadership through complexity with insight and relevant data. As the polycrisis era continues to evolve, the organizations that thrive will be those that treat risk as a catalyst for adaptation and growth amid a challenging landscape.

"COVID taught us the value of integrating resilience into core operations from the start," says Tom Russell, vice president, Global Business Resiliency and Enterprise Risk leader at Gallagher. "Whether it's a new project or system, you should be asking, 'How do we make this more resilient, and how do we take that into the process?' "

* Comments from the Gallagher Business Risk Evolution Survey

Published January 2026