For several years, I have been looking forward to the January release of the World Economic Forum’s Global Risks Report as a bellwether for risks clouding the corporate landscape for the year ahead. The 21^st annual report (PDF) was just released, and it is a sobering reminder that the 2020’s is an era of perpetual chaos and crises.

Since 2020, executives, risk leaders, and internal auditors have navigated overlapping shocks that rarely pause long enough to resolve. A global pandemic. Supply chain failures. War in Europe and the Middle East. Surging inflation. Rapid AI adoption. Political polarization. Climate disruption. Each crisis feeds the next.

The new Global Risks Report confirms what many organizations already feel in their bones. The decade of permacrisis is not behind us. It is still unfolding, and our ability to monitor and manage the risks are taxed as never before. As the report notes:

“We are witnessing the turmoil caused by kinetic wars, the deployment of economic weapons for strategic advantage, and growing fragmentation across societies. And as these “here and now” risks unfold, longer-term challenges, from technological acceleration to environmental decline, continue to create knock on effects across systems. In parallel, rules and institutions that have long underpinned stability are increasingly deadlocked or ineffective in managing this turbulence.”

Drawing on insights from more than 1,300 global leaders and experts, the report identifies the risks most likely to trigger material disruption in 2026. Seven stand out for corporate enterprises.

Below is what these risks mean for your organization and what you can do now.

1. Geoeconomic confrontation is ranked as the top near term global risk, and reflects the growing use of trade, tariffs, sanctions, and investment controls as weapons of statecraft.

Potential impact in 2026

• Supply chains fragment further.
• Costs rise as efficiency gives way to resilience.
• Market access becomes less predictable.
• Strategic dependencies create new vulnerabilities.

Key mitigation actions to contemplate

• Map exposure to tariffs, sanctions, and export controls.
• Diversify suppliers beyond single country dependencies.
• Stress test scenarios tied to trade disruption.
• Elevate geopolitical risk monitoring to the board level.

2. State-based armed conflict remains a top global risk with clear spillover effects well beyond the battlefield.

Potential impact in 2026

• Energy and commodity price volatility.
• Disrupted logistics corridors.
• Heightened cyber activity linked to conflict.
• Increased regulatory and compliance complexity.

Key mitigation actions to contemplate

• Update business continuity and crisis response plans.
• Monitor conflict-driven cyber threats.
• Assess exposure to high-risk regions and transit routes.
• Coordinate closely with insurers and security advisors.

3. Misinformation and disinformation has moved from a social nuisance to a strategic risk.

Potential Impact in 2026

• Reputational damage spreads faster than facts.
• Trust in leadership and brands erode.
• Markets react to false signals.
• Crisis response becomes harder.

Key mitigation actions to contemplate

• Strengthen monitoring of digital and social channels.
• Define clear protocols for rapid response.
• Train executives on crisis communications.
• Align legal, risk, and communications teams.

4. Societal polarization. Deepening political and social divides weaken institutions and destabilize operating environments.

Potential impact in 2026

• Workforce tensions increase.
• Regulatory shifts accelerate with elections.
• Public trust declines.
• Stakeholder expectations diverge sharply.

Key mitigation actions to contemplate

• Reinforce values-based culture and ethics programs.
• Monitor regulatory and policy volatility.
• Support managers in navigating sensitive workplace issues.
• Ensure risk assessments include social instability factors.

5. Extreme weather events remains one of the most disruptive risks facing enterprises.

Potential impact in 2026

• Physical damage to facilities and infrastructure.
• Supply chain interruptions.
• Insurance costs continue to rise.
• Workforce safety risks increase.

Key mitigation actions to contemplate

• Update climate and physical risk assessments.
• Test resilience of critical infrastructure.
• Review insurance coverage and exclusions.
• Integrate climate risk into capital planning.

6. Cyber insecurity remains a persistent and evolving threat, amplified by geopolitical tension and digital dependence.

Potential impact in 2026

• More frequent and sophisticated attacks.
• Increased targeting of critical infrastructure.
• Greater regulatory scrutiny after breaches.
• Higher recovery costs and downtime.

Key mitigation actions to contemplate

• Prioritize cyber resilience over prevention alone.
• Test incident response and recovery plans.
• Strengthen third party cyber oversight.
• Ensure the board receives clear cyber risk reporting.

7. Inequality is identified as the most interconnected global risk, and fuels many of the others on this list.

Potential impact in 2026

• Social unrest and political pressure.
• Labor market instability.
• Regulatory responses targeting corporations.
• Erosion of trust in institutions and employers.

Key mitigation actions to contemplate

• Monitor workforce pay equity and access issues.
• Assess exposure to social backlash risks.
• Align ESG commitments with measurable outcomes.
• Engage proactively with employees and communities.

What this means for corporate leaders

At more than 100 pages, the Global Risks Report is chock full of valuable insights and information. I encourage internal auditors and risk managers to read the full report. It does not predict the future. It does something more valuable. It shows how risks compound, accelerate, and reinforce one another in a world where volatility is the norm.

For C suites, this means:

• Strategy must assume disruption, not stability.
• Risk oversight must be continuous, not episodic.
• Boards must engage deeply with non-financial risks.

For risk managers and internal auditors, the implications are clear:

• Risk assessments must reflect interconnected threats.
• Internal audit plans must stay flexible and adaptive.
• Assurance must focus on resilience, not just controls.

Permacrisis is no longer a temporary condition. It is the operating environment.

Organizations that accept this reality, and act on it, will not eliminate risk. They will manage it better than those who wait for calm to return.