Geopolitics and Cyber Risks: Allianz Commercial’s Perspective

December 2, 2025

In a rapidly evolving landscape shaped by geopolitical tensions and the complexities of macroeconomic instability, the responsibilities of directors and officers are increasingly in the spotlight, prompting concerns regarding liability exposure. The Allianz Commercial report highlights how various geopolitical factors blend with cyber risks, creating a multifaceted web of challenges that boards must navigate. As the year 2026 approaches, these exposures are expected to intensify, driven by cascading economic sanctions, fluctuating tariffs, and a rising tide of cyber threats targeting corporate governance. In recent years, organizations have witnessed an alarming increase in cyber incidents fueled by nation-state actors and sophisticated threat groups. The Allianz report notes that it is crucial for corporate leaders to strengthen their vulnerabilities assessments to adequately defend against potential cybersecurity breaches.Boards need robust training and a comprehensive understanding of how to protect their organizations from the digital fallout of geopolitical skirmishes. The report articulates that with the cyber landscape evolving continuously, boards must prioritize establishing a strong cybersecurity culture and adopting stringent compliance frameworks. Cybersecurity regulations will become ever more paramount as legal implications heighten, especially considering evolving compliance standards that demand responsibility from top corporate leaders. Failure to tighten cybersecurity protocols could result in dire penalties and significant financial repercussions.

Geopolitical Tensions Spill into Cyberspace

Allianz Commercial stresses that today’s business risks are shaped by forces far beyond the balance sheet. Geopolitical instability — from trade wars and sanctions to regional conflicts and regulatory fragmentation — increasingly translates into digital exposure. Cyberattacks are no longer isolated technical incidents; they are instruments of power. State‑backed groups and politically motivated actors use them to disrupt economies, retaliate against rivals, or project influence across borders.

This means that when global tensions rise, companies can expect not only supply chain disruptions or market volatility, but also a surge in cyber aggression. Critical infrastructure, financial systems, and multinational operations are prime targets because they offer maximum leverage. A single attack can ripple across industries, undermining trust and stability far beyond the initial victim.

Cyber as a Boardroom Imperative

In Allianz’s view, cyber risk has become a strategic exposure that demands executive oversight. It is no longer sufficient for IT departments to manage firewalls and backups in isolation. A ransomware strike or data breach can paralyze operations, expose sensitive information, and trigger lawsuits. Regulators and shareholders increasingly hold directors and officers accountable for how well they anticipate, prepare, and respond.

Supply chains magnify this challenge. Modern businesses rely on a web of third‑party vendors, many of whom lack robust cyber defenses. A breach in one link can cascade across the entire ecosystem, making resilience a shared responsibility. Allianz emphasizes that cyber governance must extend beyond technical controls to include compliance, transparency, and reputation management. In short, cyber resilience is now a measure of corporate leadership.

Ransomware: The Persistent and Evolving Threat

Among all cyber exposures, ransomware remains the most damaging. Allianz reports that it continues to drive the majority of high‑value insurance claims, often exceeding €1 million per incident. Attackers are constantly adapting: they target backups to block recovery, exploit cloud services to spread quickly, and time campaigns around high‑traffic periods such as Black Friday or year‑end holidays. Some strains even incorporate artificial intelligence to evade detection or automate targeting.

While large companies have improved their defenses — leading to a decline in the frequency and severity of major claims in 2025 — attackers are shifting focus to mid‑sized and uninsured organizations. These firms often lack the resources to withstand prolonged disruption, making them attractive targets. The fallout is not only financial. Directors and officers may face lawsuits if they are deemed negligent in preparing for or responding to ransomware incidents. In sectors like healthcare, finance, and logistics, where continuity and data protection are critical, ransomware can cause both operational paralysis and regulatory penalties.

Timeline of Ransomware Evolution

Sectoral Risk Matrix (Allianz Commercial Outlook)

The Human and Legal Dimension

Cyber incidents now carry consequences that extend far beyond technical damage. Allianz highlights a growing trend of litigation, particularly in the United States, where shareholder suits and class actions are common. Executives may be scrutinized not just for the breach itself, but for their governance practices, risk assessments, and crisis communication. Privacy regulations add another layer of exposure, as breaches can trigger fines and reputational harm.

For the public, this means that cyber risk is not abstract. It affects the services people rely on, the data they share, and the trust they place in institutions. A ransomware attack on a hospital, for example, can delay treatments; an attack on a logistics firm can disrupt supply chains; and an attack on a financial institution can compromise personal information. Cyber resilience is therefore a matter of public interest, not just corporate survival.