Risk leaders tie restrictive trade policies, cyber threat exposure

Sixty-two percent of risk leaders believe that more restrictive U.S. trade policies or open conflict with other nations could heighten their exposure to cyber threats, according to a report by Riskonnect released Monday.

Increased cyber exposure from state-sponsored attacks and decreased federal cyber investments pose the biggest risk to their organizations, risk leaders said in the report.

Other effects of a prolonged restrictive trade environment include higher product and indirect costs (48%), severe supply chain disruptions and shortages (47%) and higher domestic labor costs (31%), the report said.

The Atlanta-based risk management information systems provider’s 2025 New Generation of Risk Report is based on a global survey of over 200 risk, compliance and resilience professionals.

Political risk has also become a top concern for risk leaders, climbing to third place from fifth last year, according to the report. About 97 percent of risk leaders say political risks are impacting their business in some way, with 40% describing the impact as “significant” or “severe.”

“We’re in a new generation of risk – one where cyber, geopolitical, technology, political risk, and other factors are rapidly converging and reshaping the landscape. The impact on markets and operations is unfolding faster than many organizations can keep up,” Jim Wetekamp, CEO of Riskonnect, said in a statement.