When the plan changes, so does the risk

As business planning becomes faster and more flexible, risk management has to move at the same pace

Adaptive planning is now a business necessity. In today’s fast-changing risk environment, companies can no longer rely on a single plan, no matter how well thought out, to carry them through the year.

As the last year has shown, tariffs, regulations and geopolitical developments can shift overnight, requiring companies to keep Plan A, Plan B or even Plan C on hand and ready to implement the moment conditions change. Many companies have already changed their business planning approach in response: seven in 10 U.S. executives are business planning in shorter intervals in 2026, while 61% are building more contingencies into their planning processes, according to Sentry’s 2026 Midyear C-Suite Stress Index.

That adaptability may be critical, but we can’t forget that every time a business plan changes, a company’s risk profile changes too. A decision made to solve one problem, like cost or supply, can introduce new exposures elsewhere. That means risk management is better done as part of ongoing business planning discussions—a live input into every pivot.

How the new plan changes your risk profile

Supply chain and logistics challenges are now a top threat for 62% of executives, up from 45% at the end of 2025. Economic pressures are a top threat for 53%, tariffs and trade uncertainty for 52% and labor shortages for 49%. When a company responds to one of these challenges, the fix can introduce risk in another part of the business.

Consider a company that changes suppliers or sourcing locations because of tariffs or supply chain disruption. The new arrangement may solve an immediate pricing or availability problem, but it may also change logistics, product specifications, lead times, inventory and fulfillment.

From a risk perspective, the organization’s existing processes and controls were developed around a different way of operating. If a product that once arrived in three days now takes considerably longer to source, the company may keep more inventory on-site or change its fulfillment process. If it introduces different equipment, employees may need new training, procedures, or safety controls.

Labor challenges can make those operational changes more difficult to implement safely and effectively. Labor shortages are currently a top threat for 49% of executives, up from 38% at the end of 2025. At the same time, 87% of executives say their organizations have asked employees to work longer hours or take fewer breaks during the past six months, compared with 51% in December. Among those organizations, 49% report increased errors or lower-quality work, 40% report higher turnover and 32% have experienced more employee injuries or workplace close calls.

Now ask that already-stretched workforce to learn new equipment, follow different procedures or adapt to a new workflow. The business decision may be necessary, but the conditions under which employees are being asked to execute it can introduce additional risk.

Make risk management conversations a constant

If significant business decisions are made and remade throughout the year, risk management is better served by moving upstream as an input to business decisions while alternatives are still being considered. Take the inventory example above. A concentrated amount of property at any location could change the cost or amount of insurance the business needs. Longer sourcing timelines can also affect business interruption exposures if another disruption makes it more difficult to replace materials or resume normal operations.

These are the kinds of implications brokers and insurance carriers can help companies evaluate. But to provide that perspective, they need to be part of the conversation as significant operational changes are being considered, not months later when a policy comes up for renewal.

The specific exposures will look different across industries, but the principle is the same: When an organization changes how it operates, it may also change the risks its existing controls and insurance program were designed to address. Whether a change involves sourcing, staffing, technology, facilities or another part of the business, every decision-making process should include a review of risk management practices and controls.

By Jeff Cole | Assistant Vice President of National Accounts, Sentry Insurance