Corporate Compliance Insights, October 31, 2025

Political risk has become one of the top three corporate threats facing companies, with 97% of risk leaders reporting it is impacting their business in some way, according to a survey from Riskonnect, a risk management software provider.

The survey of more than 200 risk and compliance professionals worldwide found that 40% describe the political risk impact as significant or severe. Companies report having to stall or slow hiring (37%), delay major tech investments or capital expenditures (28%) and delay expansion plans (23%) because of domestic political instability. Yet only 17% of respondents say they feel very prepared to assess, manage and recover from political risks.

The survey also found companies are incorporating agentic AI into operations without adequate risk assessment. Nearly 60% of risk leaders say their companies are considering incorporating agentic AI solutions, yet over half of those leaders (55%) haven’t assessed the risks.

Read the full article in Corporate Compliance Insights.

Download the 2025 New Generation of Risk Report.