{"id":305092,"date":"2026-06-29T08:50:42","date_gmt":"2026-06-29T03:05:42","guid":{"rendered":"https:\/\/insurancekhabar.com\/?p=305092"},"modified":"2026-06-29T08:55:05","modified_gmt":"2026-06-29T03:10:05","slug":"the-rapid-growth-of-ai-geopolitical-risk-and-regulation-are-creating-a-high-risk-environment-2","status":"publish","type":"post","link":"https:\/\/english.insurancekhabar.com\/the-rapid-growth-of-ai-geopolitical-risk-and-regulation-are-creating-a-high-risk-environment-2\/","title":{"rendered":"The rapid growth of AI, geopolitical risk, and regulation are creating a high-risk environment"},"content":{"rendered":"<p>Kathmandu. It has been revealed that businesses are increasingly facing a high-risk environment due to the rapid growth and compliance of AI, geopolitical risks, and regulation. <\/p>\n<p>This has been revealed by a new research by global law firm Clyde &amp; Co. The new 33-page research study, &#8220;The 2026 Corporate Risk Radar: Navigating Risk Without Risk,&#8221; draws on the perspectives of 700 global business leaders, including board members, C-suite executives and general advisors from a variety of sectors. It evaluates the risks organizations face in today&#8217;s environment and how leaders feel about responding. <\/p>\n<p>&#8220;86% of business leaders now consider technical risk to be a high impact,&#8221; Clyde &amp; Co said in a press release. That was 46% last year. 72% said geopolitical risks were having a direct commercial impact. That was 49% last year and 85% cited regulatory and compliance burden as a high impact, up from 54% last year. \u2019<\/p>\n<p>&#8220;4 out of 5 organisations report that geopolitical changes are affecting the way they operate around the world,&#8221; the statement said. <\/p>\n<p>According to the statement, 6 out of 10 respondents said overlapping was the biggest barrier to managing the complexity of risk effectively. Respondents represent organizations with an average global turnover of $14.7 billion. The results show that risk is no longer treated as a series of isolated challenges. Rather, business leaders are addressing the risks that are increasingly interconnected, accumulated, and triggering critical operational, business and reputational results. <\/p>\n<p>However, despite the mounting pressure, confidence remains. 95% of organizations said they were confident in management&#8217;s ability to identify and mitigate significant risks. This indicates that many businesses are continuing to invest in preparedness. However, the environment is becoming more unpredictable. <\/p>\n<p>Geopolitical instability is now having a more direct business impact on businesses. 72% said it was affecting performance. This was up from 49% last year. 4 in 5 said that geopolitical changes, trade policy changes and a changing tariff environment are significantly impacting where and how they operate globally. <\/p>\n<p>The pressure is not expected to subside. 73% of business leaders said that high globalization driven by geopolitical decisions is creating uncertainty. This can significantly impact growth in the next 5 years. While 60% expect escalating conflict and international instability. <\/p>\n<p>The next 12 months will have a significant impact on their business. As a result, organizations are restructuring operations to reduce risk to single markets, suppliers, and jurisdictions. <\/p>\n<p>This year&#8217;s research has found the largest increase in technology risk of any class. In which 86% of the leaders rated it as high impact. That was 46% in 2025. <\/p>\n<p>As the pace of AI adoption accelerates, governance is struggling to keep pace. 76% of organizations say that requirements for AI, data privacy and cybersecurity are changing rapidly. However, only 68% have a mature AI governance framework. <\/p>\n<p>This is despite 79% of leaders believe AI and new technologies will significantly impact their business over the next five years. <\/p>\n<p>Regulatory requirements are rapidly expanding across jurisdictions. Which is increasing both the pressure of compliance and the risk of reputational damage. 85% of leaders now rate regulatory and compliance burdens as having a high impact. Last year, it was 54%. While 82% say that regulatory obligations are affecting their organization&#8217;s investment and ability to grow their business. \u2013Agency<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Kathmandu. It has been revealed that businesses are increasingly facing a high-risk environment due to the rapid growth and compliance of AI, geopolitical risks, and regulation. This has been revealed by a new research by global law firm Clyde &amp; Co. The new 33-page research study, &#8220;The 2026 Corporate Risk Radar: Navigating Risk Without Risk,&#8221; [&hellip;]<\/p>\n","protected":false},"author":16,"featured_media":305088,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[45031,45044,45159],"tags":[],"class_list":["post-305092","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-banner-news-en","category-international-news-en","category-news-en"],"acf":[],"_links":{"self":[{"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/305092","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/users\/16"}],"replies":[{"embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/comments?post=305092"}],"version-history":[{"count":1,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/305092\/revisions"}],"predecessor-version":[{"id":305093,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/305092\/revisions\/305093"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/media\/305088"}],"wp:attachment":[{"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/media?parent=305092"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/categories?post=305092"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/tags?post=305092"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}