Cybersecurity Surpasses Tariffs as Leading Business Threat

Recent studies indicate that organizations are increasingly viewing cybersecurity risks as a greater threat to business operations than tariffs or trade policy changes. This shift is reflected in multiple industry surveys and risk assessments conducted in 2025 and 2026.

Research from Zero100 found that over one-third of surveyed businesses considered cyber incidents to be the most serious threat to continuity in 2026. This concern was ranked above other risks such as geopolitical instability, trade policy shocks, and labor disruptions in the same study.

Additional polling by West Monroe in early 2025 showed that 23% of U.S. manufacturing, retail, and distribution executives identified cybersecurity as their primary supply chain concern, while 20% pointed to tariffs. Data from Diligent’s Q4 2025 Business Risk Index also indicated that 60% of legal, compliance, and audit leaders saw technology-related risks, including cyberattacks, as a main concern, compared to 23% who cited tariffs.

What the numbers show

• 44% of organizations reported cybersecurity as the biggest threat to continuity
• 41% experienced a cyberattack affecting continuity in the past year
• Average cyberattack cost for small businesses ranged from $120,000 to $1.24 million per incident
• 73% of organizations cited trade uncertainties as their top business challenge

The World Economic Forum’s Global Cybersecurity Outlook 2026 highlighted that efforts to reconfigure supply chains in response to trade disruptions, including tariffs, often result in organizations expanding their cyber-attack surface. This expansion occurs when new suppliers are added more quickly than cybersecurity checks can be completed.

The same World Economic Forum report noted that geopolitical fragmentation, driven in part by trade policies such as tariffs, is altering technology ecosystems and supply chains. These changes can sometimes move faster than organizations’ ability to manage cybersecurity risks.

A May 2025 article from the World Economic Forum stated that 73% of organizations identified trade uncertainties, including tariffs, as their main business challenge. The article also reported that these uncertainties can amplify cyber risks, particularly when companies switch suppliers quickly or delay security improvements.

Analysis from RevenueMemo found that 44% of organizations see cybersecurity as the greatest threat to business continuity, with 41% having experienced a cyberattack that directly affected their operations in the past year. The same analysis reported that small businesses faced average cyberattack costs ranging from $120,000 to $1.24 million per incident.

The Zero100 study also examined executive perspectives on artificial intelligence and cyber-risk mitigation. Among chief operating officers surveyed, 50% believed AI could help reduce cyber risks, while 43% thought it might increase them.

* This article is based on publicly available information at the time of writing.