Plastics, deepfakes and regulators: The risk stories you need to know

Emerging risks are hitting from all sides this week. Plastic pollution is moving from environmental concern to full‑scale litigation risk, while hyper‑real deepfakes are redefining cyber exposure and corporate vulnerability. AI continues to accelerate, but without the right governance, highlighting that AI‑first can quickly become risk‑first.

Regulators are turning up the heat too with ASIC, APRA and AUSTRAC spotlighting gaps in fraud controls, non‑financial risk management and operational resilience across the sector. Add rising geopolitical fragmentation and shifting trade rules and boards are facing an increasingly volatile external environment.

The common thread? The cost of risk are moving faster than governance can keep up.

Risk radar

Plastics: a new wave of litigation?

Who pays when plastics go on trial? Are insurers ready? As pollution mounts and scientific evidence sharpens, producers, manufacturers, recyclers and waste managers are finding themselves at the centre of an escalating wave of lawsuits. From US class actions and public‑nuisance claims to greenwashing challenges and product‑liability battles now emerging in Europe, the litigation landscape is shifting fast.

Read the Swiss Re analysis.

Deepfakes reach new milestone — Corporate risk implications

When deepfake is getting so real, how do we survive the next cyber attack? Google’s Nano Banana Pro model can now generate synthetic media so realistic it’s nearly impossible to tell what’s real, opening the door to sophisticated fraud, reputation attacks and high‑impact impersonation scams. Insurers are already rolling out crisis‑response offerings as organisations scramble to keep up, relying on cutting‑edge forensics like model fingerprints, metadata analysis and cryptographic watermarking to detect manipulated content.

See what the milestone means for corporate risk.

Separating the hype from AI reality to improve super fund operations

When AI can build software end‑to‑end, who’s accountable? Agentic AI can now build software end‑to‑end, putting rapid prototyping in the hands of business users. But with that power comes real risk: poor data, bias, security gaps, regulatory friction and legacy‑system constraints. Leaders need a strategy‑first mindset — choosing the right tool for the right problem and demanding evidence, not promises. Going AI‑first can mean over‑engineering solutions and taking on unnecessary disruption without the governance to manage it.

Read the full breakdown.

Regulatory updates

ASIC outlines 2026 risks for insurers and financial markets

ASIC’s 2026 outlook highlights system‑wide pressures driven by cost‑of‑living strains, rising debt, geopolitical tensions, rapid AI adoption and surging AI‑enabled cybercrime.

Read ASIC’s full 2026 outlook.

ASIC urges super trustees to strengthen anti‑scam and fraud protections

ASIC’s review found major weaknesses in super funds’ scam‑ and fraud‑prevention content, with guidance often unclear, outdated or hard to find.

Read the media release.

APRA and AUSTRAC act on Bendigo Bank risk failures

APRA and AUSTRAC have taken coordinated action after an independent Deloitte review uncovered deficiencies in Bendigo Bank’s money‑laundering and broader non‑financial risk management.

Read APRA’s full statement.

SIRA audits claims management by insurer QBE

Transition risks in TMF and insufficient oversight of wage reimbursements and provisional liability decisions highlighted broader concerns about QBE’s claims management practices.

Read the audit findings.

Geopolitical alignment rises up boardroom agendas

Willis’ Political Risk Index highlights rising risks from stricter export‑control rules, tougher supply‑chain management, poison‑pill clauses, and uncertain alignment in key emerging markets.

Read the Index findings.