Cyber threats are rising. Regulations are tightening. Insurance is shifting. The 2025 J.S. Held Global Risk Report warns that cyber risk is now a top business threat. The report also examines AI rules, supply chain turmoil, cryptocurrency shifts, and sustainability pressures. Here’s a closer look at cyber risk trends in 2025, as highlighted in the report. Cyber risk, cyber resilience, cyber insurance, and issues like ransomware are all touched on.
Cyber Risk 2025: Threats Increasing in Frequency and Impact
It’s becoming repetitive, but every report of this nature says the same thing, which makes it worth repeating – Cyberattacks are becoming more frequent, severe, and financially damaging. At the same time, cyber resilience is harder to maintain.
Key cyber threats include:
- Business Disruptions: Cyberattacks can bring operations to a standstill, leading to regulatory scrutiny and financial losses.
- Reputational Damage: Companies affected by breaches face lawsuits, lost customer trust, and falling stock prices.
- Sensitive Data Loss: Personal, financial, and proprietary data is increasingly targeted by cybercriminals.
- Ransomware Dilemmas: Companies face tough choices—pay a ransom (potentially violating laws) or risk prolonged downtime.
Cyberattacks are no longer isolated IT problems; they pose existential risks to businesses.
Regulators: Stricter Cybersecurity Mandates
Governments are introducing new cybersecurity regulations to enhance protection, incident reporting, and compliance standards.
Developments in 2025:
- EU’s NIS2 Directive: Expands cybersecurity requirements across critical industries.
- Cyber Resilience Act: Mandates stronger security for digital products sold in the EU.
- SEC Cyber Disclosure Rules: U.S. public companies must disclose major cybersecurity incidents within four days.
- TSA’s Proposed Cyber Rules: Imposes risk management obligations on transportation operators.
Cyber Insurance: A Market in Flux
As cyber risks rise, businesses are reassessing their insurance policies. At the same time many cyber insurers are tightening coverage. They are adding exclusions and raising premiums.
Trends in cyber insurance:
- Higher Premiums: The global cyber insurance market is expected to reach $29 billion by 2027.
- Ransomware Exclusions: Some insurers no longer cover ransom payments due to legal risks.
- Stricter Underwriting: Insurers demand multi-factor authentication (MFA), endpoint protection, and robust backup strategies before issuing policies.
Review policies to ensure they cover business interruption, data breaches, and regulatory compliance.
AI’s Role in Cyber Defense and Threats
Artificial intelligence, friend and foe.
- Defensive AI: AI-driven threat detection identifies attacks faster, reducing response times and limiting damage.
- AI-Powered Attacks: Cybercriminals use AI for deepfake phishing, automated malware deployment, and real-time hacking.
Companies investing in AI-enhanced cybersecurity tools will gain a competitive edge in risk management.
Proactive Cybersecurity Measures for Cyber Risk 2025
- Multi-Factor Authentication (MFA): Strengthens access controls.
- Endpoint Detection & Response (EDR): Improves threat visibility.
- Immutable Backups: Protects against ransomware data loss.
- Incident Response Planning: Enables faster recovery from attacks
Conclusion
We’ve made this point before: cybersecurity and cyber risk are not an IT issue. IT is like the role of maintenance; they repair and update like a person might repair a lock or install new cameras. Security is entirely a different area of concern and focus. The locksmith isn’t a security guard, and an IT professional isn’t there to create cyber resilience any more than another employee.
Cyber risk in 2025 is a top-tier business concern, well, it should be.
