Cybersecurity ranks as top business risk for 2026

The next time you see a news headline about a major data breach or a company-wide system shutdown, you’re not just reading about a technical hiccup. You’re witnessing the sharp edge of a new reality a landscape where digital threats are no longer a fringe concern, but the single greatest risk to business continuity. The Chartered Institute of Internal Auditors (Chartered IIA) has just confirmed what many in the finance and fintech sectors have felt in their bones: cybersecurity is the top business risk for 2026.

Their flagship annual report, “Risk in Focus 2026,” pulls no punches. Based on a poll of nearly 900 Chief Internal Auditors across the UK and Europe, the findings paint a picture of a business world on high alert. Over 80% of respondents identified cybersecurity and data security as a leading threat, a finding that hits particularly close to home given the recent barrage of cyberattacks on some of the UK’s most iconic brands. It’s a stark reminder that in our hyper-connected world, no one is immune.

Anatomy of an Attack: From the High Street to the Assembly Line

The report’s release is eerily timed. In the UK alone, the fallout from attacks on major brands like M&S, the Co-Op, Harrods, The North Face, and Jaguar Land Rover continues to ripple through the economy. These aren’t isolated incidents; they are textbook examples of how digital failures can lead to devastating financial and operational consequences.

For M&S, a ransomware assault didn’t just disrupt its online store—it hammered the bottom line. The attack, which disabled the retailer’s online order system and disrupted in-store services, cost the company an estimated £300 million in operating profits. Beyond the immediate financial hit, the incident wiped out over £500 million in stock market value, a sobering figure that shows how quickly investor confidence can evaporate when a company’s digital defences fail.

Meanwhile, the cyberattack on Jaguar Land Rover exposed the fragility of modern manufacturing supply chains. The attack effectively took the carmaker’s factories offline, forcing a prolonged shutdown that has cost the company an estimated £50 million per week. This isn’t just about a single company’s lost revenue. It’s a systemic problem. The “just-in-time” nature of automotive production means JLR’s shutdown created a domino effect, leaving hundreds of smaller suppliers without a customer and in a precarious position. The lesson is clear: a vulnerability in one link of a supply chain can bring an entire ecosystem to a standstill.

A Complex Web of Risks

While cybersecurity takes the top spot, the “Risk in Focus 2026” report highlights a broader, more complex risk landscape. This isn’t just a list of ten threats; it’s a map of an interconnected web where one risk can amplify another.

For example, human capital, diversity, and talent management retained its position as the second-largest threat. Why? In an era where attacks are becoming more sophisticated and driven by AI, businesses are in a fierce race to attract and retain the right skills to build their digital defenses. The fear of “deskilling” due to AI is a significant concern. Companies need to not only invest in technology but also in the people who can manage and secure it.

This brings us to the third-ranked risk: digital disruption, new technology, and AI. Its rapid climb from fourth to third place reflects the double-edged sword of innovation. While AI and new technologies offer immense opportunities, they also create new vulnerabilities. Internal auditors are grappling with the challenge of developing effective strategies for fast-moving generative AI systems. The very tools that promise efficiency can also introduce unforeseen risks if not properly managed and secured.

The list of top risks also includes macroeconomic and geopolitical uncertainty, which tied for fourth place. This is a crucial point. Global trade wars, geopolitical tensions, and shifts in regulatory policy don’t exist in a vacuum. They influence every other risk category, from the types of threats a business faces to its ability to invest in new technologies or attract talent.

Internal Audit as a Strategic Partner

The Chartered IIA’s report isn’t just an alarm bell; it’s a call to action. Anne Kiem OBE, Chief Executive of the Chartered IIA, says it best: “The recent wave of cyberattacks on major UK businesses is a stark reminder that cybersecurity must remain at the top of every board’s agenda.”

She argues that internal audit teams are uniquely positioned to provide independent assurance to boards, verifying that a company’s cyber and digital controls are robust and effective. It’s about moving from a reactive stance mopping up after an attack, to a proactive one, where businesses can build genuine resilience. The report urges boards to harness the experience of these teams to assess and strengthen their risk management frameworks.

In today’s fast-paced, digital-first world, ignoring these warnings is no longer an option. The data is clear, the real-world examples are abundant, and the stakes have never been higher. For the financial sector, where trust and data integrity are the bedrock of the business, building a strong, resilient, and forward-looking cyber defence strategy is not just a priority—it’s a matter of survival.