As trade tensions mount and digital threats multiply, a growing number of corporate risk leaders warn that protectionist policies could ignite a new wave of state-backed cyberattacks. Riskonnect’s 2025 survey shows how geopolitical and technological risks are converging faster than most organizations can adapt.
Cyber Exposure Becomes the Top Trade Risk
More than six in ten risk leaders say prolonged U.S. trade restrictions could trigger a surge in state-sponsored cyberattacks and digital espionage. The 2025 New Generation of Risk Report by Riskonnect highlights how economic protectionism is reshaping the corporate risk map, linking tariffs and trade realignments to increased cyber exposure and operational fragility.
Alongside cyber threats, respondents cited higher production costs (48%), severe supply chain disruptions (47%), and rising labor costs (31%) as key vulnerabilities in a protectionist environment. “We’re in a new generation of risk, one where cyber, geopolitical, and political factors are rapidly converging,” said Jim Wetekamp, CEO of Riskonnect. “Resilience has become a core strategic capability, not just a defensive posture.”
Political volatility has also surged up the risk agenda. Nearly all (97%) respondents said political instability is affecting business decisions, with 40% describing the impact as “significant” or “severe.” Many have slowed hiring (37%), delayed major tech investments (28%), or postponed expansion plans (23%) amid domestic uncertainty.
AI Governance and Geopolitical Planning Gain Urgency
While 66% of risk leaders now have plans to manage geopolitical volatility, up sharply from 19% in 2024, most organizations still struggle with the depth of their digital supply chain visibility. Although 85% maintain continuity and resilience plans for major IT outages, only 8% can effectively monitor supplier tiers beyond their direct partners.
AI risk management remains underdeveloped. The share of companies using or planning to use AI in risk functions rose to 70% this year, yet 42% lack policies governing employee AI use, and 72% have none for partners or suppliers. Most (75%) also lack a plan to address genAI-specific threats such as deepfakes or AI-driven fraud. Only 15% have budgets dedicated to mitigating these risks, and fewer than one in four (23%) have restrictions on foreign AI models.
Even so, progress is visible: 32% of companies have formally trained staff on genAI risks, up from 19% last year, and 61% have conducted worst-case scenario simulations, compared with 44% in 2024. The presence of chief risk officers continues to expand, rising to 60% from 52% over two years, signaling the institutionalization of risk oversight as a strategic discipline.
Reframing Risk as Strategic Foresight
What stands out in this year’s data is how risk has become less about crisis management and more about organizational intelligence. The growing overlap between cyber, trade, and AI risks suggests that tomorrow’s advantage won’t come from having thicker firewalls, it will come from building adaptive sensing networks that can read weak signals across markets, policy, and technology. Companies that treat risk analytics as a forecasting engine, not just a compliance requirement, will be the ones shaping the next generation of resilient global operations.
