SYDNEY, 29 June 2026 - Aon plc (NYSE: AON), a leading global professional services firm, has released its 2026 Independent Schools Risk Report, highlighting how participating independent schools in Australia are navigating a convergence of cyber risk, workforce challenges and financial considerations.

Cyber risk was the highest-ranked concern among respondents, reflecting schools’ growing reliance on digital systems across teaching, administration, communications and finance. Survey findings show one-in-four schools surveyed in 2026 reported experiencing a cyber incident, up from one in five in 2024. In response, 76 per cent of schools report having documented preventative cyber measures in place, up from 66 per cent in 2024, highlighting a stronger focus on preparedness.

The ability to attract and retain talent was ranked as the second-highest risk overall. The report found Australian lower secondary teachers work an average of 46.5 hours per week during school terms, significantly above the Organisation for Economic Co-operation and Development average, as schools respond to teacher shortages and rising expectations from parents and communities¹.

This is also contributing to increased focus on mental health, which was the third-highest risk in the survey. Schools are strengthening wellbeing initiatives and psychosocial risk management in response to workloads, regulatory developments and the impact of social media and online harm on students.

Financial considerations were also identified as a key concern, with three of the top 10 risks directly linked to schools’ financial position. Increasing competition, enrolment trends, economic conditions and funding uncertainty have risen in prominence, alongside rising operating costs and heightened expectations around educational value.

Respondents also identified several emerging risks, including artificial intelligence, community engagement and stakeholder planning, school community behaviour, board capability and succession planning and school travel risk, including the rise in e-bike use among students.

“The independent school sector is operating in an environment where risks are increasingly interconnected. Cyber security, workforce dynamics, mental health, regulatory change and financial sustainability are more closely linked and benefit from strong governance oversight and an integrated approach to risk management,” said Lachlan Bowden, practice group leader of education for Australia at Aon. “As demands on schools continue to grow, leaders are balancing educational outcomes with operational complexity. This year’s findings reinforce the importance of preparedness, resilience and long-term planning.”

Conducted between January and March 2026, the survey included responses from 306 independent schools across Australia. The survey identified the following top 10 risks for 2026:

• Cyber risk
• Ability to attract and retain talent
• Mental health of staff and students
• Privacy/data breach
• Changes to legislation and regulation
• Increasing competition/declining enrolments
• Economic slowdown/weak recovery
• Impact of brand and reputation matters
• Student safety and allegations of child abuse
• Uncertainty around future funding

About the Survey

Since 2014, Aon’s Independent Schools Risk Survey, conducted on a biennial basis, captures a view of risks in the education landscape from the perspective of professionals working in the sector. To access the full report, visit schoolsriskreport.aon.com.au.

This year, the survey was conducted from January to March 2026. Three hundred and six independent schools took part in the survey from all states and territories across Australia (except for the Northern Territory). Participating schools include non-denominational and religious schools, as well as schools offering special assistance and Steiner and Montessori-led education.

For the purpose of this survey, an independent school is generally defined as a non-government school that operates independently of state and territory education departments and is typically governed by its own board or organisation rather than by a church or government authority.

The information in this media release is based on survey responses from participating schools and reflects their views at the time of the survey. It is not intended to be representative of all independent schools in Australia.

¹Friedman et al., TALIS 2024 Australian Report: The Teaching and Learning International Survey, p. 48.

About Aon

Aon plc (NYSE: AON) exists to shape decisions for the better — to protect and enrich the lives of people around the world. Through actionable analytic insight, globally integrated Risk Capital and Human Capital expertise, and locally relevant solutions, our colleagues provide clients in over 120 countries with the clarity and confidence to make better risk and people decisions that help protect and grow their businesses.

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