Forget the gym. This year, let’s focus on strengthening your risk strategy.

For VC and PE-backed companies, growth moves fast. But risk moves even faster. New markets, new vendors, new products, and new expectations from investors, clients, and customers introduce exposures that aren’t always apparent until it’s too late.

These five resolutions will help you align protection with ambition and make sure your insurance program keeps pace with where your business is headed in 2026.

1. Decide on Your Risk Tolerance

Every organization has a different appetite for risk. The problem is taking it without being explicit about where the lines are.

Define your tolerance clearly across key areas like cyber, regulatory compliance, intellectual property, and operational risk. This gives leadership teams a shared framework for decision-making and helps avoid surprises when something goes wrong.

Why it matters:

Investors expect aggressive growth, but speed to market often comes with tradeoffs. When risk appetite isn’t aligned across leadership, companies can drift into exposures that trigger regulatory scrutiny, reputational damage, or delays at the worst possible moment.

Claim example:

A fast-growing fintech company launches a new payment platform without full regulatory clearance. Six months later, regulators impose $2 million in fines and halt operations, delaying a major funding round.

Insurance coverage to consider:

  • Directors & Officers (D&O) Liability – Protects leadership from claims tied to strategic decisions.
  • Errors & Omissions (E&O) – Covers professional liability for compliance failures.
  • IP Defense Coverage – Helps manage costs if your IP strategy leads to infringement claims.

Investor perspective:

Boards want clarity on risk appetite to ensure growth decisions don’t jeopardize valuation, exit timelines, or leadership credibility.

2. Reassess Cyber Risk

Cyber threats emerge and change daily, while reliance on cloud infrastructure, third-party platforms, and data continues to grow. Yet many companies are still relying on policies designed for a very different risk environment.

Why it matters:

A cyber incident can derail a funding round, stall an IPO, or raise red flags during due diligence. Even well-managed companies can see deals slow or valuations soften if coverage risk gaps are uncovered too late.

Claim example:

A SaaS company suffers a ransomware attack during an IPO roadshow, exposing customer data and causing a $5 million revenue hit. Headlines read: “Tech Unicorn’s IPO Delayed After Cyber Breach.”

Insurance coverage to consider:

  • Cyber Liability Insurance – Covers breach response, regulatory fines, and business interruption.
  • Technology E&O with Cyber Endorsement – Protects against client claims tied to outages or breaches.
  • Contingent Business Interruption – Adds protection if a cloud provider outage halts your operations.

Investor perspective:

Cyber resilience is now a core part of due diligence. Weak coverage signals operational risk and can reduce confidence in management’s preparedness.

3. Strengthen Third-Party Risk Oversight

Vendors and partners continue to be one of the largest — and least controlled — sources of exposure.

Outsourced development, cloud hosting, payment processes, and service providers create dependency risk. When a third party fails, your company owns the fallout.

Why it matters:

Third-party incidents don’t stay isolated. They impact customer trust, revenue continuity, and brand perception — all areas investors scrutinize closely.

Claim example:

A health-tech startup relies on a third-party billing vendor that suffers a data breach, exposing thousands of patient records. The startup faces lawsuits and negative press: “Vendor Breach Hits Healthcare Innovator.”

Insurance coverage to consider:

  • Contractual Risk Transfer – Require vendors to carry cyber and liability coverage, naming your company as additional insured.
  • Supply Chain Insurance – Covers losses from critical vendor disruptions.
  • Crime Coverage – Protects against fraud or social engineering attacks involving third parties.

Investor perspective:

Strong vendor oversight signals operational maturity and reduces systemic risk.

4. Refresh Travel Risk Protocols

Global mobility is back, but the risks have changed. When your team travels, they could deal with political instability, health concerns, and regional security issues.

Why it matters:

Expansion into new markets often means sending teams abroad for sales meetings, partnerships, or product launches. Political unrest or health crises can disrupt operations and put employees at risk.

Claim example:

A tech executive travels to a high-risk region and is detained during civil unrest, triggering a $250,000 emergency evacuation and security response. Headlines read: “Startup CEO Evacuated Amid Political Crisis.”

Insurance coverage to consider:

  • Business Travel Accident Insurance – Emergency medical and evacuation coverage.
  • Kidnap & Ransom Coverage – Essential for executives traveling to high-risk regions.
  • Foreign Voluntary Workers’ Compensation – Covers employees working overseas.

Investor perspective:

Safeguarding key talent during global expansion protects continuity and reinforces confidence in leadership.

5. Build a Culture of Continuous Risk Awareness

Risk isn’t a once-a-year renewal conversation.

Companies that scale treat risk as something to revisit alongside strategy changes. That mindset shows up in training, governance, and how leadership responds to early warning signs.

Why it matters:

Investors want assurance that risk management scales with growth. A strong risk culture signals readiness for IPO, acquisition, or long-term independence.

Claim example:

A tech company ignores early compliance warnings and fails to train staff on new privacy laws. A major data mishandling incident leads to a $10 million class-action lawsuit and headlines: “Privacy Failures Sink Startup’s Valuation.”

Insurance coverage to consider:

  • Management Liability Package – Combines D&O, EPL, and Fiduciary coverage for leadership.
  • Cyber and E&O Training Credits – Many insurers offer premium discounts for companies that invest in risk training and tabletop exercises.
  • Parametric Insurance – Innovative coverage for emerging risks like cloud outages or regulatory delays.

Investor perspective:

A proactive risk culture reduces surprises and builds confidence in leadership.

Quick Wins for January

As with any resolution, taking on too much too quickly can stall progress and lead to burnout. Risk strategy doesn’t need to begin with a major overhaul. A few focused actions early in the year can surface gaps, reinforce governance, and set the tone for more proactive risk management in the months ahead. Start with these:

  • Schedule a cyber coverage review and confirm limits align with current exposures.
  • Audit vendor contracts for insurance requirements and compliance.
  • Update travel protocols and confirm emergency response plans.
  • Host a risk appetite workshop with leadership and document thresholds.
  • Plan a tabletop exercise for a high-impact scenario, such as a cyber breach or regulatory investigation.

Turning Resolutions Into Resilience

In 2026, let your insurance program work as hard as your growth strategy. By making risk management part of your organization’s operating discipline from the start of the year, you support growth with clearer guardrails and stronger protection as the business scales.

Get a Second Perspective

If you want a second perspective on whether your risk program aligns with where your business is headed, a Sequoia consultant can help you evaluate coverage, identify gaps, and prioritize next steps. Connect with a consultant.

Kristen Peed — is the Chief Risk Officer at Sequoia and has over two decades of experience in the risk industry. She leads the placement of Sequoia’s corporate insurance programs, including captive operations, enterprise risk management, and the Risk team. Kristen also serves as the 2025 President of the Risk Management and Insurance Society (RIMS) and was named one of Captive Review’s Top 20 Captive Owners for 2025. She earned her B.A. in Industrial Relations from the University of North Carolina at Chapel Hill. Outside of work, Kristen enjoys training for half-marathons with her dog, golfing with her husband, and going to the beaches of South Carolina.