Organizations and their people are operating under sustained uncertainty because of rising cyber threats, rapid adoption of artificial intelligence (AI), and skilled labor shortages, according to the 2026 People Risks report released today by Marsh (NYSE:MRSH), a global leader in risk, reinsurance and capital, people and investments, and management consulting.

Drawing on insights from more than 4,500 HR and Risk professionals across 26 markets, the report highlights that technology disruption is driving the top people risks, the workforce-related factors that can amplify or mitigate enterprise risk and impact organizational resilience and performance.

Companies that actively manage these risks are better positioned to gain a competitive edge. When asked about the positive outcomes organizations realized by successfully managing and mitigating people risks, 40% of respondents said they increased workforce productivity and efficiency, and 36% said they achieved faster progress on strategic initiatives such as AI adoption.

"People risks cannot be secondary concerns, as they impact the health and well-being of the workforce and the business," said Hervé Balzano, Mercer's President of Health and Benefits and Mercer Marsh Benefits' Global Leader. "In 2026, resilience depends on how well organizations invest in their people: building the right skills, supporting health and financial security, and redesigning work so humans and technology can perform at their best together."

Technological change and disruption are top of mind

Inadequate cyber threat literacy ranks as the number one people risk globally, underscoring that cyber resilience depends as much on human behavior as it does on technology. Technology skills shortages, such as those in cyber and AI, follow closely at number three, reflecting a growing gap between digital ambition and workforce readiness.

While organizations continue to invest heavily in AI, the most significant threat may be translating that spending into real productivity, innovation and performance gains. Mindset barriers to AI adoption now rank among the top global people risks. Forty percent of HR and Risk professionals are concerned that their organizations are investing in and adopting AI without adequate training and upskilling.

"AI will only deliver value when organizations rethink how work is done and how people are supported," commented Ravin Jesuthasan, Mercer's Global Leader for Transformation Services. "Treating AI as a simple add-on to existing work processes creates real risk and inefficiency. The organizations pulling ahead are those redesigning work, upskilling their workforce, addressing AI anxiety and pairing human judgment with machine capability."

Leadership gaps and labor shortages amplify risk

Labor shortages, particularly in digitally-savvy talent, remain one of the most persistent global threats, ranking second overall and topping the list in industries such as manufacturing, energy, retail and construction. The pressure is particularly acute in aging and super-aging societies, where shrinking working-age populations are colliding with a rising demand for specific skills.

At the same time, the report identifies inadequate leadership skills as the single biggest risk multiplier, triggering or worsening issues like mental health deterioration and unsafe working conditions, which put productivity, performance, and reputation at risk.

Traditional leadership models are proving ill-suited for today's volatile environment. Mercer's recent 2026 Global Talent Trends report confirms that executives' and employees' views on effective leadership are evolving; employees place increasing value on empathy, communication, and honesty while executives emphasize risk awareness, strategic execution, and accountability in leaders. This misalignment on what constitutes good leadership threatens to erode cultures, employees' sense of satisfaction, and organizational performance.

Financial stress and health risks undermine performance

Financial insecurity is now a material organizational risk, ranking fourth globally. According to respondents, employees' rising living costs and debt burdens are directly linked to lower employer retention and engagement, as well as potential misconduct in organizations.

Financial strain also extends to employee health and well-being. Employees continue to delay care due to affordability and access issues, quietly eroding workforce resilience. HR and Risk professionals expect the situation to worsen, with more than half (58%) saying health and benefits costs are almost certain or likely to increase.

"Despite concerns about rising benefit costs and growing mental health challenges, HR and Risk professionals are deprioritizing health-related risks as they are overshadowed by more immediate concerns," shared Amy Laverock, Mercer Marsh Benefits' Global Advisory Specialties Leader. "This highlights a concerning disconnect. Organizations are attempting to separate health outcomes from risk management, when they are inherently intertwined."

Risk maturity delivers a measurable advantage

Organizations that report more advanced approaches to managing risk also consistently report having more effective people risk mitigations in place. Additionally the report shows, companies with strong collaboration between the Risk and HR functions have significantly more effective risk mitigations in place today — translating into stronger decision-making and greater stability.

"Forward-looking organizations recognize that their workforce is not just a source of risk, but their greatest strategic asset," Ms. Laverock added. "Those that act now — investing in leadership and technology skills, as well as employee health and financial security — will be best equipped to turn uncertainty into advantage."

About Mercer Marsh Benefits' People Risks report

Now in its fourth edition, People Risk 2026 captures the most significant people risks facing organizations, based on a survey of more than 4,500 HR and Risk professionals in 26 markets, conducted from October through November 2025.

About Marsh

Marsh (NYSE:MRSH) is a global leader in risk, reinsurance and capital, people and investments, and management consulting, advising clients in 130 countries. With annual revenue of $27 billion and more than 95,000 colleagues, Marsh helps build the confidence to thrive through the power of perspective. For more information, visit corporate.marsh.com, or follow us on LinkedIn and X.

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Lauren Baumert

+1 202 331 5206

Lauren.Baumert@marsh.com

Cyber risk tops the global people risk agenda, according to Marsh's 2026 People Risks report