Cyber disruption, financial uncertainty and evolving governance expectations are reshaping the risk landscape in 2026. While these developments present real challenges, they also offer opportunities for charities to strengthen resilience, improve governance and innovate in how they deliver impact.
A changing risk landscape for charities
Charities today are navigating a more complex operating environment. Technology is transforming service delivery with the integration of new tools, systems and AI. Financial pressures are another defining challenge. Inflation and rising operational costs mean many organisations must carefully balance service delivery with financial sustainability. At the same time, expectations around governance, safeguarding and transparency continue to increase.
One of the most significant developments is the increasing reliance on IT systems, AI and other online tools to manage data. Online fundraising platforms, cloud-based management systems and remote working tools are now central to many charities’ operations. However, this also increases exposure to cyber threats. According to the UK Government Cyber Security Breaches Survey 2025 30% of charities experienced a cyber security breach or attack in the previous year, highlighting the scale of the issue.
Charities should also be aware that fraudulent diversion of funds, off the back of phishing or email hacking is still a leading cause of cyber incidents and claims which should place it a high priority for leaders to put security and finance procedures in place to mitigate this risk.
The Charity Commission’s guidance on risk management emphasises that trustees must actively identify and manage risks that could prevent their organisation from achieving its aims. Risk management should be a strategic leadership issue rather than simply a compliance requirement.
Turning risk into opportunities
Although emerging risks can appear daunting, they can also highlight opportunities for improvement and innovation.
For example, rising cyber threats are prompting charities to strengthen their cyber security and put cyber risk and insurance on their agenda. Investment in staff training, improved security controls and clearer incident response processes can reduce vulnerability while enabling organisations to be in a better position to adopt new digital tools with greater confidence.
Workforce pressures are also encouraging charities to rethink how they support staff and volunteers. Across the sector, burnout and recruitment challenges have led many organisations to introduce wellbeing initiatives, flexible working arrangements and stronger internal communication. These changes can not only reduce risks relating to employment disputes, but also strengthen organisational culture and improve retention.
In this way, emerging risks can act as signals for where organisations may need to adapt and evolve.
Risk ownership
Building resilience requires risk awareness across the whole organisation. While trustees provide oversight, effective risk management depends on teams being able to identify and escalate issues early.
Maintaining an up-to-date risk register is a key starting point. This should reflect current activities and emerging risks such as cyber threats, reputational issues or workforce pressures. Regular discussions about risk at management meetings can also help ensure potential issues are identified early.
When staff, volunteers, trustees and other stakeholders are included in risk management, it allows leaders to get a holistic view of the organisation and the risks facing it, whether that be in fundraising, in service delivery, in meetups or online.
Practical steps for charity leaders
Charity leaders can take several actions to strengthen resilience:
- Review risk registers regularly so they reflect emerging threats and operational changes.
- Align risk management with strategy, considering how risks could affect key objectives – or stop your charity from achieving its mission.
- Encourage organisation-wide risk awareness so teams feel confident escalating concerns.
- Review insurance arrangements to ensure cover reflects current activities and risks.
The risk landscape for charities will continue to evolve as technology, regulation and economic pressures shape the sector. Organisations that approach risk proactively – and see it as an opportunity to strengthen governance and adapt – are often best positioned to thrive.
The insurance market is softening in 2026. Now is a great time to review your cover in relation to your risk register, to ensure the cover you have aligns with the current profile of your charity, and that the premium you pay is competitive.