Economic uncertainty is rising sharply as shifting trade policies, geopolitical instability, and operational disruptions force corporate leaders to reshape their long-term strategies and risk management approaches, according to new research from Sentry Insurance.
The 2026 C-Suite Stress Index: Midyear Report found that 82% of U.S. executives are more concerned about the future of their businesses than they were at the start of the year. This trend is most severe among small business leaders, with 90% expressing uncertainty regarding their business’s survival.
Nearly all executives, representing 98% of those surveyed, indicated that events during the first half of 2026 have altered their approach to long-term planning. To manage a wider range of interlinked risks, 70% of leaders are shortening their planning horizons, while 61% are developing more contingencies. Geopolitical volatility is a significant hurdle, as 88% of executives report difficulty managing these risks due to the rapid pace of change.
Several key business challenges have seen significant increases in concern since the beginning of the year. Supply chain and logistics issues rose 17 percentage points to 62%, while uncertainty regarding tariffs and trade increased 13 percentage points to 52%. Labor shortages also saw an increase of 11 percentage points, reaching 49%.
Jeff Cole, assistant vice president of national accounts at Sentry, observed that the primary change is not just the types of risks being managed, but the speed at which they evolve and impact one another. He noted that an adaptable approach to planning is essential, allowing organizations to reassess risks regularly and gain the flexibility needed to respond to multiple possible outcomes.
The research highlighted a significant gap between large and small companies. While 69% of executives at firms with more than 1,000 employees reported increased concern, that figure jumped to 90% for those at companies with 10 to 49 employees. Small business leaders are also more vulnerable to international volatility; 65% reported negative impacts from geopolitical events, and 95% are struggling to keep up with evolving external risks.
