Canada’s Top 10 business risks differ from global peers

Canadians see things differently. That’s a key takeaway from a new 2026 global business risks survey from Allianz Commercial.

The insurer’s annual Risk Barometer compiles views from 3,338 senior managers, risk managers, brokers and insurance experts in 97 countries and territories. The insurer provided CU with isolated statistics for Canadian respondents.

For surveyed Canadian risk experts, changes in legislation and regulation (which includes tariffs, new directives and sustainability requirements) top the list, with 33% of respondents calling it their key concern. That’s up from fifth place in 2025.

Since this time last year, Canadian businesses have prioritized the ability to adapt in response to a highly dynamic global situation, says Bernard McNulty, chief agent in Canada for Allianz Commercial.

“Our clients are…deploying quality control resources globally. They’re putting resources at foreign plants to ensure that wherever components are being manufactured there [meet] guidelines for quality and safety. That’s constantly being enhanced.

“Shipping partners [and] logistics companies are being tested [and] retested. There’s all these moving pieces that relate to that process that are constantly at the forefront of continual improvement and building up capacity.”

Related: Canadian business leaders list their top risks for 2026

Natural catastrophes (NatCats), including storms, floods, wildfires and earthquakes, are the Number 2 risk for Canadian businesses, at 30% of responses.

Global survey respondents diverge from their Canadian peers, placing legislation and regulation risk at Number 4, and NatCat risk at Number 5.

At first glance, NatCats’ high position on the survey may seem unusual since NatCat losses in Canada were lower in 2025, following record losses in 2024. But McNulty says the global perspective of commercial risk experts likely influences the 2026 results.

“Our clients are almost always global. They’re really plugged into the global [NatCat] exposure: the Los Angeles wildfires [and] hurricane Melissa in the Caribbean,” he says, adding Canadian companies own a “surprising level of assets in the Caribbean.”

Canadians matched their global peers on business interruption (which includes supply chain disruption), ranking the risk at Number 3 for 2026, with 28% of respondents calling it a primary concern.

Risks posed by artificial intelligence (AI) stood at Number 4 with Canada’s business risk managers (26% of respondents) in 2026. That’s up from ninth place in 2025. Globally, risk experts rank AI at Number 1, citing growing liability risks as the technology becomes embedded in core business operations.

Finishing Canada’s Top 5 is climate change, with 24% of respondents expressing concerns that extreme weather would cause physical, operational and financial risks this year. Globally, climate change ranks at Number 6, being a top concern for 19% of global respondents.

Related: Where economic volatility is hitting your clients hardest

For the remaining Top 10, Canadian respondents rank fire and explosion at Number 6, cyber incidents at Number 7, macroeconomics at Number 8, market developments at Number 9 and talent or labour issues at Number 10.

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Once again, Canada’s response on a major risk differs from global peers, who ranked cyber incidents Number 1.

One possible reason for this lower ranking could be the high level of resources available to Canadian insureds, notes McNulty. For example, the Canadian Centre for Cyber Security frequently generates bulletins and alerts – more than 5,000 since its establishment in 2018.

He describes Canada’s IT culture as highly collaborative. “There’s this collective work against the threats…and the information sharing is extremely valuable,” he adds. “That’s what gives [Canadian businesses] some comfort that there’s appropriate capital investment in infrastructure and protection.”

Meanwhile, he adds, talent issues earn their place in the Top 10 because of the wide range of national projects being undertaken, including pipelines, liquefied natural gas plants and public transportation projects. “Getting access to the top talent, specifically engineering talent, [is critical].”

Phil Porado

Phil, an award-winning journalist with over 30 years of experience in financial topics, has been managing editor of Canadian Underwriter for more than three years.