Private schools are facing a growing wave of cyber threats, with one in four reporting a cyber incident this year as digital security overtakes teacher shortages and mental health as the sector's biggest risk.
Cybersecurity has emerged as the top concern for Australia's independent schools, according to Aon's 2026 Independent Schools Risk Report, which surveyed 306 schools between January and March.
The report found one in four schools experienced a cyber incident in 2026, up from one in five in 2024. In response, 76% of schools said they have documented preventative cyber measures in place, compared with 66% two years ago.
The report's top 10 risks for 2026 were cyber risk; the ability to attract and retain talent; staff and student mental health; privacy and data breaches; legislative and regulatory change; increasing competition and declining enrolments; economic slowdown; brand and reputation; student safety and child abuse allegations; and uncertainty around future funding.
While cyber risk topped the list, attracting and retaining staff ranked second, reflecting ongoing workforce pressures across the sector.
The report noted Australian lower secondary teachers work an average of 46.5 hours a week during term time – well above the OECD average – as schools continue to grapple with teacher shortages and growing expectations from parents and communities.
Staff and student mental health ranked as the third-highest risk, with schools increasing their focus on wellbeing initiatives and psychosocial risk management in response to workload pressures, regulatory changes, and the impact of social media and online harm.
Financial sustainability also featured prominently, with increasing competition, enrolment trends, economic conditions, rising operating costs and funding uncertainty all identified as significant challenges.
Schools also flagged a range of emerging risks, including artificial intelligence, community engagement, board capability, succession planning and school travel safety, including the growing use of e-bikes by students.
“The independent school sector is operating in an environment where risks are increasingly interconnected,” Lachlan Bowden, practice group leader of education for Australia at Aon, said.
“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.”
Bowden said that 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.”