Insiyah Davenport, group chief risk officer, Optio Group, says the year ahead will see CROs look to how governance will redefine business strategy.

The role of the chief risk officer is changing faster than at any point in recent memory. As we move into 2026, CROs are operating in a landscape shaped by renewed consolidation, rising regulatory expectations and increasing scrutiny from investors, capacity providers and partners. Boards are contending with a broader and more volatile risk environment, driven by operational resilience requirements, cyber risk, data quality, geopolitical uncertainty, regulatory divergence, talent scarcity and the growing importance of culture. In this context, the most effective CROs are reframing governance. Rather than treating it as a defensive shield, they are positioning it as strategic infrastructure that supports growth, ambition and long-term value.

Regulatory developments over the past year underline this shift. In the UK, in December the FCA has introduced changes to insurance conduct and product governance rules intended to simplify requirements for commercial business and remove some prescriptive obligations. These changes reflect a broader supervisory direction rather than a wholesale easing of expectations. The emphasis has moved away from rigid processes and towards firms’ judgement, governance quality and their ability to demonstrate good outcomes. For CROs, this reinforces a familiar message: strong governance matters more, not less.

This is particularly relevant for acquisitive firms and for businesses preparing for strategic transactions. Governance quality has become a visible indicator of value. Market experience consistently shows that weaknesses in risk management, conduct oversight or regulatory discipline can reduce valuations and complicate deal execution. Where governance is treated as a compliance exercise rather than part of the commercial engine, the consequences are often felt at precisely the wrong moment. By contrast, firms that embed governance into decision-making are better placed to grow and integrate with confidence.

Consolidation continues to reshape the insurance market. Organisations that spent years acquiring others are now themselves becoming targets, creating layered groups with different operating models, systems and regulatory histories. These structures carry heightened integration, conduct, culture and technology risks. Boards increasingly expect CROs to be involved early in deal activity, using their insight to assess regulatory maturity, cultural alignment and integration risk before transactions complete. Early involvement does not slow deals down. It reduces the risk of value-eroding surprises later on.

Once a transaction closes, the focus shifts to integration. Many firms will again find themselves absorbing multi-jurisdictional businesses in 2026, often while managing stretched systems and operating models. At the same time, regulatory expectations are becoming more risk-based and less prescriptive. This places greater emphasis on management judgement, supported by data, oversight and clear documentation. Integration plans must therefore demonstrate not only that controls exist, but that they are proportionate, well-understood and consistently applied.

International expansion adds further complexity. Regulators are sharing information more frequently across borders, and expectations around resilience, cyber readiness, financial reporting and conduct oversight continue to rise. While there may be gradual convergence in some areas, meaningful differences between jurisdictions will remain. CROs must therefore balance local compliance with group-wide oversight and be alert to how regulatory expectations are evolving.

The demand for transparent, reliable and granular data is accelerating this evolution. Regulators, investors and capacity providers increasingly expect clear insight into how businesses operate and manage risk. Many CROs are using automation and advanced analytics to improve visibility and decision-making. While these tools introduce new risks of their own, they also strengthen oversight and support a more forward-looking approach to risk management. In an environment where judgement carries more weight, the ability to explain decisions clearly is increasingly important.

Operational and reputational risks are now central board concerns. These risks influence credibility, investor confidence and long-term sustainability. Boards are also paying closer attention to culture, leadership capability and succession planning. As firms pursue ambitious growth strategies against this backdrop, the CRO’s role continues to expand. The modern CRO is no longer someone who appears only when a problem emerges. They shape strategy, support commercial decision-making and help organisations navigate uncertainty with confidence.

The firms that succeed in 2026 will be those that recognise governance as an enabler rather than an obstacle. The CROs who thrive will be those who combine risk discipline with commercial instinct and who help their organisations grow with clarity, control and resilience.