< Back to the full 2026 report on Top Risks From Threats to Transformation: The Key Risks and Opportunities Shaping the Government Sector 5 min read 2026 Executive Perspectives on Top Risks and OpportunitiesGovernment leaders are navigating a period defined by rapid technology shifts, fiscal pressures and evolving public expectations. Protiviti’s global survey of 1,540 C‑suite executives and board members highlights how Australian government respondents are balancing immediate risks with opportunities to modernise infrastructure, optimise costs, strengthen workforce capability and advance AI adoption. Their perspectives underscore the importance of improving productivity, resilience and service delivery while managing legacy constraints, third‑party risks and emerging technologies. This report distils those insights to help leaders understand what is changing — and why it matters. Read the full results to learn how your peers are prioritising investment, modernising infrastructure and preparing for AI‑driven transformation.Download the 2026 government insights10-minute readWatch the 2026 webinar60-minutes, on-demand Our webinar series Discover how leading executives are turning today’s top risks—AI, cybersecurity, and talent—into tomorrow’s growth. Join us for actionable insights to help your organisation outpace uncertainty and seize new opportunities. Watch now Explore featured solutions and industries Pro Digital Hightech Artificial Intelligence (AI) We help national, state and local government leaders apply AI in ways that are responsible with strong governance, transparent practises and safeguards that support public trust. Pro cloud Cybersecurity We help government agencies strengthen their security posture by improving defences, enhancing resilience and supporting compliance with evolving privacy and security requirements. Technology We support government organisations as they modernise legacy systems, address technical debt and improve interoperability through secure cloud and data‑driven platforms. Pro System Security Data privacy We help government organisations and agencies build and maintain privacy programs that support regulatory compliance, strengthen data oversight and protect sensitive information. Pro Building Govt Test Government At Protiviti, we believe strong communities start with resilient institutions. By working together, we help government clients build trust, enhance efficiency, and drive innovation – empowering you to serve your communities with confidence and excellence. Get more Top Risks insights Discover our full catalogue of insight briefs for additional research findings and expert commentary related to the 2026 report on Top Risks. Insights by industry Insights by organisational role Insights by industry Aerospace & Defence CPG & Retail Energy & Utilities Financial Services Healthcare Manufacturing & Distribution Private Equity Technology, Media & Telecommunications Insights by organisational role Finance Teams Information Security Teams Internal Audit Teams Operations Teams Technology & Data Teams FAQs + EXPAND ALL How can government agencies modernise legacy systems without disrupting public services? + Legacy infrastructure is a significant near‑term risk as ageing systems struggle to meet performance, security and interoperability expectations. The survey highlights ecosystem development as a key opportunity, enabling agencies to access external expertise, scale solutions faster and share risk while modernising platforms, cloud environments and data capabilities. Protiviti supports this shift by helping agencies replatform systems, migrate securely to the cloud and strengthen data governance to improve service delivery. What governance and regulatory challenges most limit AI adoption in government today? + Government leaders highlight the need for strong governance, transparency and accountability as AI adoption accelerates, particularly given fiscal constraints and the importance of maintaining public trust. Adoption is also challenged by workforce capability gaps, investment requirements and the need to balance risk management with pace of deployment. Protiviti supports agencies with responsible AI governance, data frameworks and oversight approaches that enable progress while maintaining trust. Which cyber and third-party risks pose the greatest threat to government operations? + As reliance on third‑party providers and digital ecosystems grows, agencies face increasing exposure to cyber threats and supply chain risks. Dependencies on external technology providers, including foreign‑sourced solutions, introduce additional vulnerabilities alongside the rising frequency and sophistication of cyberattacks. Protiviti helps agencies strengthen resilience through enhanced risk management, improved oversight of third‑party providers and stronger cybersecurity practices. Why are data privacy and infrastructure modernisation top investment priorities for government organisations? + Government leaders are prioritising infrastructure modernisation, data privacy and cybersecurity as they expand digital services and adopt emerging technologies. Investments are focused on upgrading legacy systems, building secure and scalable environments and strengthening data governance to support performance, resilience and trust. Protiviti supports agencies in building modern architectures and governance frameworks that improve efficiency and enable secure transformation. What long-term risks should government leaders prepare for as digital ecosystems grow? + Over the next decade, government leaders are focused on interconnected challenges including markets and economies, security and privacy, sustainability, talent and evolving customer expectations. As digital ecosystems expand, maintaining resilience, protecting data and addressing workforce capability gaps will be critical to long‑term success. Protiviti helps agencies strengthen cybersecurity, modernise systems and build capabilities that support sustainable, secure public sector operations. Connect with us Gihan Mallawaarachchi Gihan is a highly experienced public sector consultant with 18 years of professional services expertise in the provision of assurance, program and project management, probity and strategy consulting services to Australian Government entities. Gihan has a proven ... 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