Top risks & opportunities for Australian businesses in 2026

As 2026 begins, Australian businesses are contending with fast-moving technology, changing regulation and sustained operational challenges. While some barriers, such as cost pressures and broader economic uncertainty, persist, many organisations are finding ways to reposition for growth through digital transformation and strategic resilience.
Below are the key risk and opportunity areas that business leaders should be monitoring this year.

1. Technology and AI Adoption

AI and broader technological adoption have rocketed to the forefront of strategic concerns. According to industry surveys, new technologies, including AI, are now the number one challenge facing Australian business leaders in 2026. For many, the complexity isn't just adoption, but how to integrate these technologies strategically and responsibly across the business, from operations and customer experience to compliance and workforce strategy.

However, recent reporting shows that while many organisations are increasing AI investment, only a fraction report deep operational transformation to date, highlighting risks around talent shortages, governance and data infrastructure.

Key considerations

Focus on building strong internal foundations, ensure your data, processes, and team skills are ready to support AI before scaling its use across the business.
Embed AI governance frameworks early to manage ethical, privacy and liability risks.
View digital transformation as a business-wide strategy, not just a technology project.

2. Cyber security and operational resilience

Cyber risk remains a major priority in 2026. Globally and in Australia, cyber-attacks and data breaches remain among the top risks cited by risk managers and boards, driven by the increasing frequency of sophisticated attacks as day-to-day operations become increasingly dependent on technology.

Regulators like ASIC have also highlighted that cybersecurity weaknesses and inadequate operational resilience frameworks are major issues threatening consumer trust and confidence in businesses across Australia.

Key considerations

Strengthen incident response and recovery plans year-round (not just after breaches occur).
Prioritise secure development and patching lifecycles for digital and AI systems.
Obtain cyber insurance or check with your broker to ensure that your current cyber cover still meets your requirements.

[Further reading: Don't Wait for a Breach: Why now is the time to review your Cyber Insurance]

3. Regulatory pressures and compliance complexity

Regulatory change is climbing the list of business concerns, with organisations citing evolving reporting requirements and compliance obligations as persistent challenges. ASIC's 2026 outlook highlights areas where businesses may face increased regulatory and compliance scrutiny, including lending and credit practices, internal controls and reporting standards, and the use of AI in decision-making.

Key considerations

Monitor regulatory changes and ensure your business has the capacity to implement required updates within the given timeframe and communicate changes to clients effectively.
Ensure oversight of automation and algorithmic decision-making within your business.
Proactively review internal controls and business practices to identify potential conduct risks and ensure operations remain transparent and compliant.

4. Cost pressures, economic volatility and sector weakness

Despite pockets of strength in sectors like resources and financials, broader economic conditions remain unstable. Some industries continue to see profit margin compression, cautious investment sentiment and workforce cost pressures. Cost-of-living pressures are not just a consumer concern, price rises in essentials, such as energy and insurance, are squeezing business operating margins.

Key considerations

Maintain cost discipline while continuing to invest strategically in areas that support long-term growth.
Drive operational efficiency without losing focus on innovation and competitiveness.
Protect your financial flexibility to respond quickly to opportunities or unexpected challenges.

[Further reading: Underinsurance in a High-Inflation Environment: Are you covered?]

5. Talent, skills and workforce transformation

Workforce challenges persist amid skills shortages in technology, data and specialised services. Competition for emerging roles, such as AI, cloud computing and cybersecurity, remains intense, even as overall recruitment patterns shift. Additionally, workers are increasingly selective about flexibility, career development, and organisational culture.

Key considerations

Invest in upskilling and reskilling programs tailored to future skills gaps
Design flexible work models to attract and retain diverse talent
Embed digital literacy and innovation skills at every level of the business

6. Strategic transformation and organisational agility

Organisational flexibility and agility remain critical for businesses navigating an increasingly complex and fast-moving environment. Companies that can quickly adapt their processes, decision-making structures, and resource allocation are better positioned to respond to market shifts, regulatory changes, and technological disruption.

Key considerations

Build adaptive operating models that allow quick decision-making and redeployment of resources.
Encourage a culture of innovation and cross-functional collaboration to improve responsiveness.
Integrate digital tools and data-driven insights to support agile planning and continuous improvement.

[Further reading: Business Interruption Insurance: Protecting Against the Unexpected]

Looking Ahead

In 2026, successful Australian businesses will be those that treat innovation and risk management as complementary rather than competing priorities. Strategic investment in technology must go hand-in-hand with strong governance and organisational resilience. Meanwhile, macroeconomic uncertainties reinforce the need for disciplined cost management and workforce planning. Balancing short-term operational pressures with long-term adaptability, will prove to be the winners.

How Coverforce can help

At Coverforce, we understand the unique risks Australian businesses face. Our team is here to help you find the right insurance solutions to protect your operations, assets, and future growth.

Get in touch today to find out how we can help you navigate risks with confidence and ensure your business is ready for whatever comes next.

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