People Risk 2026 report 

The AI hustle: Unlocking real business value

As artificial intelligence reshapes expectations of work and accelerates organizational change, it is also redefining risk — and what it takes to remain competitive. While many employers remain focused on the dangers that AI can bring — from data loss to hallucinations — a far greater threat is emerging: failing to convert AI investment into meaningful productivity, innovation, and performance gains.

With Indonesia’s rapid digitization and cross-border complexity in Asia, the human layer is revealed as the largest cyber vulnerability.

Surviving the fast lane: The new leadership challenge

The nature of organizational risk is changing and leaders sit at the intersection between a volatile world and their organization’s response. As these pressures intensify, leadership capability has become a critical control at the heart of effective risk management. When leaders lack the skills to adapt quickly, inspire a diverse workforce, and create understanding in the face of ambiguity, risks spread quickly across the organization.

Frayed loyalty: The growing risk of employee financial insecurity

Employees’ financial vulnerabilities are no longer just a personal issue. Financial insecurity has become a material organizational risk — one that directly affects productivity, retention, and behavior. In our research, employee financial insecurity ranks within the top 10 risks for all regions and as the #4 people risk globally, reflecting the growing pressure employees face as living costs outpace wage growth.

Financial strain heightens employees' awareness of inadequate rewards and engagement programs, and employees are likely to delay seeking healthcare.

Quest for clarity: Regaining control in a time of complexity

Managing rewards and benefits is becoming significantly more complex. Rising health and benefit costs, shifting regulations, growing expectations of transparency, and expanding cyber exposure are converging at a time when risk and HR teams are being asked to deliver more with fewer resources and less margin for error.

As Indonesia’s regulatory environment evolves, people-related compliance issues are becoming more prominent and impactful. What were once routine HR operational matters are now business-critical risks with material implications for corporate reputation, governance, and strategic decision-making.

Hidden health risks: Emphasizing what really matters

Workforce health and safety provide the foundation of organizational performance. Employees cannot perform, adapt, or innovate if they are injured or unwell, or if they feel unsafe at work. Yet, despite the pandemic ending just three years ago, health-related risks and the importance of preventive actions appear to be receding from view — overshadowed by more immediate concerns such as cyber threats, AI disruption, and geopolitical instability.

50% of HR and Risk professionals say risks related to unsafe physical and / or psychological working conditions would have a catastrophic or high impact on their organization.