How executives prioritize risk under pressure

When leaders are forced to triage, urgency can become one of the strongest factors shaping how they prioritize risk. Issues that disrupt operations today—or threaten near-term performance—are easier to see, easier to measure, and often feel more controllable than risks that may or may not appear in the future.

That lens is reinforced by the mindset many leaders bring into 2026. More than half (54%) say they’re optimistic about their company’s prospects for the year ahead, while a strong majority (84%) report feeling equally or more stressed than they did last year, but 60% feel more stressed than they did a year ago. Together, those responses suggest leaders are pushing forward under pressure, even as demands on their time and attention remain high.

More than two-thirds (69%) of business leaders say a single multimillion-dollar verdict would likely put their company out of business.

Even so, litigation does not always rise to the top of daily risk conversations. While lawsuits have affected most organizations (93%) in the past five years, far fewer leaders (17%) rank them among the risks demanding immediate attention. That gap may not reflect a lack of awareness. Instead, it suggests how legal risk competes for attention alongside more visible, day-to-day challenges.

In a triage-driven environment, litigation may be viewed as a risk executives will address if—and when—it arises. Confidence in legal counsel, insurance, or past experience can reinforce that view.

When preparation is delayed, exposure can increase quietly. By the time the threat of litigation becomes urgent, options may be narrower and outcomes harder to manage—leaving less room to shape results before costs escalate.

Every location across the country faces the potential of severe weather. And yet, this threat is often underestimated. Many leaders have managed outages, delays, or supply disruptions caused by severe weather or natural catastrophes, and returned to normal operations. That experience can reinforce the belief that the business will be able to adapt again if needed.

The data suggests that confidence may be masking growing exposure.

• Nearly all executives (92%) say their business has been impacted by severe weather in the past five years

• Half (50%) believe the next major weather event or natural catastrophe could force their company to permanently close

Even so, only a third (32%) rank natural catastrophes among the top threats to their businesses in 2026.

That pattern may reflect how leaders view extreme weather. Severe weather and natural catastrophes may often be seen as external disruptions—something to endure rather than continuously manage. As attention shifts back to day-to-day demands, preparation can be easier to postpone. Over time, that delay may reduce the margin for recovery, especially as weather-related disruptions become more frequent and less predictable.

Operational pressures are unlikely to ease anytime soon, and balancing short-term demands with long-term risk will remain a daily reality for business leaders. Still, the 2026 data suggests many executives recognize that their current approach may leave limited room for error—especially when it comes to risks that don’t show up every day.

Nearly all executives (98%) say they plan to review their insurance coverage in 2026.

Reviewing coverage isn’t just a routine task. It can signal a broader reassessment of the tradeoffs leaders make under pressure—and a recognition that delaying preparation may carry real consequences.

The goal isn’t to pull focus from growth or abandon optimism. It’s to make sure urgency doesn’t become the only measure of importance. Low-frequency, high-impact risks may not demand attention every day, but they benefit from regular review—before they force difficult decisions.

Business leaders can take a few practical steps to rebalance risk:

• Review risk priorities on a regular schedule, not only after a disruption

• Test assumptions about coverage and preparedness, especially for recovery scenarios

• Address gaps between prevention and preparation, from safety practices to continuity planning

• Work with trusted advisors to align coverage, controls, and response plans with today’s risk environment

Quiet tradeoffs are inevitable. Leaving them unexamined isn’t. By pairing confidence with intentional review, leaders can protect what they’ve built—while staying positioned to grow and adapt.