Volatility and uncertainty are no longer exceptional conditions for company boards, they have become the backdrop to almost every significant decision. That is the view of Karen Cargill (pictured), who advises some of the UK's largest corporations on directors' and officers' liability, and current and emerging risks.
The World Economic Forum's Global Risks Report 2026, produced in partnership with Marsh, reflects that backdrop. More than half of 1,300 experts surveyed expected a turbulent or stormy outlook over the next two years, rising to 57 per cent over the next decade. Uncertainty, the report concluded, has become the defining feature of the global risk landscape.
"Being a director and officer has never been easy," Cargill told Insurance Business UK. "But I do think the current environment presents some really serious challenges. It presents opportunities, but it also presents challenges. I think uncertainty is probably the new normal."
That uncertainty is reflected in the nature of the risks now reaching board level. Rather than dealing with isolated issues, directors are increasingly required to balance a myriad of current and emerging risks including cyber resilience, artificial intelligence and regulatory changes.
Cyber risk has evolved beyond incident response into a permanent governance responsibility, with directors increasingly accountable for oversight of resilience and preparedness.
Artificial intelligence presents a different challenge. Cargill described herself as optimistic about its potential but argued that boards must also consider the governance and legal risks that accompany its adoption.
"It has the potential to bring very significant rewards," she said. "I am genuinely very optimistic about AI, but I think it is also going to bring risks that need to be appropriately managed."
Regulation compounds that complexity. Different jurisdictions are adopting different approaches to AI governance, making consistent decision-making increasingly difficult for multinational organisations.
"It is difficult for companies to make decisions around these things when they are faced with different frameworks around the world," Cargill said. "That is bringing a heightened level of risk and a heightened level of difficulty."
Perhaps Cargill's most striking observation was that sophisticated boards are not underestimating emerging risks.
"I don't think they're underestimating risk," she said. "I think if anything they see the picture, but it's grappling with the risks that they see."
That distinction runs through her view of modern governance. The challenge is no longer recognising risk issues such as cyber threats, AI, regulatory challenges or employment law reforms. It is deciding how those risks are appropriately managed when several significant risks arrive at once.
She cited the Employment Rights Act 2025 as one example. While awareness of the legislation is generally high, many organisations are still working through its practical implications for management liability.
That is where advisers should add the greatest value: helping boards understand where management liability exposure is likely to develop before it becomes a live problem, rather than simply reacting once it has emerged.
The same principle applies inside the boardroom. The strongest boards recognise they cannot eliminate uncertainty; they develop the resilience and agility to continue making decisions despite it.
"Resilience is hugely important," Cargill said. "Given the current geopolitical climate, the economic, and other challenges we are all faced with, I can't remember a time that has been quite so challenging for boards.”
