Boards and C-suites in 2026 are prioritizing how they manage reputational risk in a shifting global landscape. WTW’s 2026 Global Reputational Risk Readiness Report shows that rising concern is driving greater focus on monitoring and managing reputational risks.
Increased uncertainty and concern about reputational risks
The recent WTW survey suggests organizations experience uncertainty as decisions that once were seen as internal (from where to locate production to how to price offerings) are becoming contentious as investors, consumers, employees and governments increasingly scrutinize companies’ values and priorities.
At the same time, trust in business leaders has fallen, and many leaders do not know why. The 2025 Edelman Trust Barometer found that 68% of people said business leaders mislead them, while 61% had a moderate or high sense of grievance toward business and government. Only 41% of respondents to the WTW reputational risk survey said they knew which reputational issues mattered to their stakeholders, down from 58%. Just 37% said they knew where negative sentiment around their brand is most concentrated, down from 56% in 2024.
Less certainty around reputation and stakeholder priorities has reduced organizations’ appetite to take on reputational risk, even when opportunities appear attractive. Only 37% of respondents said they would accept a high level of reputational risk even if an activity aligned with their business strategy, down from 57% in 2024. Fifty-six percent said they had a low appetite for reputational risk and would end an activity or association if it exceeded their tolerance, up from 36% in 2024.
Top reputational risks
Driven by AI-enabled cybercrime and fear of reputational damage, cyberattacks remain the top risk in 2026, cited by 67% of respondents. High-profile data breaches and service interruptions have captured media attention, eroding trust and brand value.
Concerns about social harms, such as labor exploitation in the supply chain, have increased, with 57% naming it among their top reputational risks, up from 47% in 2024.
Most respondents remain concerned about the reputational impact of sustainability issues as expectations and regulations can change quickly across election cycles.
Abuse of customers and employees remains a prominent reputational concern, cited by 44% and 43% of respondents respectively. Concern about harm linked to product safety rose to 40%, from 22% in 2024, which may reflect a rise in the number of product recalls over the last two years.
How organizations are preparing
Despite rising uncertainty, many organizations are strengthening how they manage reputational risk in 2026, including:
- Board‑level processes for reputation risk have more than doubled. The 2026 survey shows that more organizations have formal processes to manage reputational risks that are linked to board KPIs. Forty-six percent said they had formal, board-level processes to update directors on reputational risks, up from 15% in 2024. Governance has also been strengthened, with 31% reporting formal processes, up from 19%. Thirty-four percent had the highest level of monitoring progress on reputational risks, up from 15%
- Integration with enterprise‑wide risk management is increasing. The survey showed a deeper commitment to integrating reputation risk into enterprise-wide risk management, with 30% of respondents saying they had done a great deal of integration and 64% a moderate amount, up from 16% and 53% in 2024
- Modeling capability is rising. Organizations are improving their ability to model and understand the financial impact of reputational damage. More than 30% now report a great deal of modeling capability, up from just 11% in 2024
- Stakeholder engagement is up. On average, organizations in 2026 engaged with stakeholders on reputational risk issues at least five times a year, up from an average of four times in 2024
- Most companies budget for reputational damage. Nearly all the companies surveyed (95%) reported they have a reserved budget for a damaging reputational event, including contingency for communication and marketing. This was slightly higher than in 2024
- Use of social media for brand and customer dialogue is rebounding. There was a significant shift in 2026 toward using social media to develop brand awareness (ranked by 60% compared to 46% in 2024) and engagement with customers (57% versus 39%). CEOs also communicated with stakeholders and customers on social media more frequently than in 2024
However, the survey also reports fewer organizations have formal crisis teams now than in 2024 (80% versus 87%), escalation processes are weakening (only 25% say they have the highest level of process, down from 34%) and confidence in crisis communication has slipped (78% versus 86%).
How to withstand a reputational crisis
The following five actions can help reduce the impact of a crisis:
In 2026, reputational risk is commanding greater boardroom attention as trust declines, scrutiny intensifies and new risks arise. Many organizations are responding by strengthening governance, improving integration with enterprise risk management and investing in monitoring, modeling and stakeholder engagement. For boards and executive teams, the focus is on developing clear insight and practical capabilities that support timely, credible responses when reputational challenges emerge.
A version of this article originally appeared on Forbes on May 15, 2026.
Disclaimer
WTW hopes you found the general information provided here informative and helpful. The information contained herein is not intended to constitute legal or other professional advice and should not be relied upon in lieu of consultation with your own legal advisors. In the event you would like more information regarding your insurance coverage, please do not hesitate to reach out to us. In North America, WTW offers insurance products through licensed entities, including Willis Towers Watson Northeast, Inc. (in the United States) and Willis Canada Inc. (in Canada).
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