Businesses are increasing investment in risk management as they face a more complex and unpredictable threat landscape, but many remain unconvinced that their organisations are equipped to manage increasingly interconnected risks, according to new research from global specialty insurer Hiscox.

The Hiscox Risk Report 2026: Risk in Motion found that 69% of organisations expect to increase risk management investment over the next 12 months. However, 48% believe their current models adequately capture how risks are connected, highlighting a gap between investment and capability.

More than half of risk managers, at 51%, said they now regularly face multiple risks simultaneously, while 27% frequently see one event trigger another. Almost two thirds, at 65%, believe risks are more closely linked than five years ago and 94% believe businesses continue to underestimate the impact of cascading risks.

Cyber risk sits at the centre of many potential chain reactions, acting as a catalyst for disruption across workforce, operational, economic and technology risks. More than half of risk managers, at 56%, said interconnected risks are more disruptive than recurring individual threats.

Coordinating an effective response remains a challenge. Half of risk managers, at 50%, said coordinating across teams, functions and insurance policies is their biggest challenge when multiple risks emerge simultaneously, while 84% believe siloed business units slow response times during periods of interconnected disruption.

Kate Markham, Hiscox London Market CEO, said: “Our research highlights a growing resilience gap. While organisations are investing more in risk management, many still lack the structures, visibility and capabilities needed to understand how disruption spreads across their operations. Closing that gap is not simply about spending more. It requires moving beyond viewing risks in isolation and developing a clearer understanding of how threats interact, amplify one another and create wider business impacts. Insurance companies therefore have a critical role to play, not only by providing financial protection after a loss, but also by helping organisations strengthen resilience and manage interconnected risks before disruption occurs.”

The research was conducted by Wakefield Research among 800 risk managers at multinational companies across Australia, Canada, Denmark, Finland, France, Germany, Japan, Norway, Sweden, the UK and the US between 20 February and 3 March 2026.

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