While more global executives cite cyber risk as their greatest threat this year compared to 2024, 83% say they feel prepared to counter it—up from 74% last year—potentially indicating a false sense of security, as many organisations still lack the sustained vigilance needed for true resilience, according to Beazley’s latest Risk & Resilience report.
The report revealed that, for the first time since 2021, concern over cyber risk has increased, with 29% of global executives identifying it as their top threat, up from 26% in 2024.
Despite the growing awareness of cyber risk, executives report feeling more prepared to handle cyber threats, with 83% believing they can counter them—up from 74% last year. Beazley suggests this may reflect a false sense of security in an increasingly dynamic and unpredictable risk environment.
However, most executives (79%) are looking to improve their cyber security through third-party suppliers this year, and 37% intend to invest directly in cyber security.
The report also highlighted the transformative potential of AI, with 79% of surveyed executives agreeing it will positively impact their business’s economic prospects this year, while 66% believe AI will replace jobs within their company over the next 18 months.
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At the same time, concern is growing around intellectual property (IP), data privacy risks, and new regulations, while worries about tech obsolescence have declined slightly—from 27% in 2024 to 25% this year.
Beazley also pointed to the widening spectrum of cyber threats facing businesses, including cyber warfare and third-party risks, as increasingly interconnected ecosystems create new vulnerabilities. Ransomware remains a major concern, now amplified by AI to increase its speed and impact. Hacktivism is also on the rise, with activists targeting systems to disrupt operations and damage reputations, posing a threat to firms caught in the crosshairs of ideological divides.
Alessandro Lezzi, Group Head of Cyber Risk, Beazley said, “The contradiction between cyber threat concern and perceived resilience does not reflect the reality of today’s cyber and tech threat landscape, which is more dynamic and unpredictable than ever.
“But it’s encouraging to see that 79% of firms are looking to improve their cyber security with third party suppliers, and 37% are planning to invest in improved cyber security this year. This investment is needed, as organisations face a ‘whack-a-mole’ range of risks that they must continuously navigate.”
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