Geopolitical risk

Navigating the cyber front line in a shifting world order

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  • Insight
  • 6 minute read
  • December 2025

Cybersecurity is now a key geopolitical battleground as nations and cybercriminals vie for control over digital infrastructure and emerging technologies. CISOs must strengthen fundamentals, collaborate widely, and lead integrated, strategic cyber resilience amid escalating risks.

Cybersecurity today is not just shaped by geopolitics — it’s a front line where power is projected and contested. Strategic competition is escalating to levels unseen since the end of the Cold War, as nations vie for dominance over emerging technologies, infrastructure, and information flows. The private sector — particularly hyperscalers and global tech platforms — now holds much of the strategic data once monopolised by states, placing companies squarely in the crosshairs of geopolitical competition, and its spillover into conflict.

Nation-state actors are embedding themselves in digital infrastructure to surveil, disrupt and prepare for escalation. Targets now include not only governments, but municipalities, corporations, and the infrastructure that powers the global economy. Even those not directly attacked are swept up as collateral damage. Cloud adoption and the race to adopt agentic AI are multiplying attack surfaces. At the same time, AI is also lowering the barrier to entry for threat actors — accelerating the rise of cybercrime-as-a-service.

These dynamics are unfolding against a backdrop of deepening geopolitical instability. The post-World War II global order was built on alliances, multilateral institutions and shared norms. That system is being challenged as never before, weakening the foundations of international cooperation. As geopolitical dynamics shift, the consequences for cybersecurity are immediate and far-reaching. Cyber risk is no longer just a technical concern — it’s a reflection of geopolitical, commercial, technological, and criminal forces in motion. Each is reshaping the threat landscape and driving a strategic shift that demands a distinct response from CISOs today.

Four strategic shifts reshaping cyber – and what CISOs should do now

1. State actors’ digital pivot: From espionage to strategic pre-positioning
According to US and allied intelligence agencies and security services, cyber operations of malign state actors have shifted from espionage and IP theft to long-term strategic pre-positioning in global digital infrastructure. Through state-backed vendors, export of telecom and cloud systems, and increasing influence in standard-setting bodies, these state actors are embedding digital capabilities that could provide asymmetric advantage in future conflict scenarios. Sectors such as telecommunications, energy, transportation, and water have been identified as potential targets of pre-positioning activity. And because much of this infrastructure is owned or operated by the private sector, CISOs play a critical role in front-line defence.

  • Reinforce the fundamentals: Maintain deep visibility across critical assets, segment high-value systems, promptly patch, remove unsupported legacy systems and establish strong endpoint control to limit attacker movement and contain breaches quickly.
  • Trust but verify: Red-team your systems. The adversaries will probe you for weaknesses and you should find and eliminate shortcomings before attackers discover them.
  • Partner with government: Deepen engagement with cybersecurity agencies and law enforcement, such as the US Cybersecurity and Infrastructure Security Agency (CISA), US Federal Bureau of Investigation (FBI), UK National Cyber Security Centre (NCSC), UK National Crime Agency (NCA), Australian Cyber Security Centre (ACSC), and their counterparts in your region, to gain early access to threat intelligence, stay ahead of regulatory shifts, and align response playbooks to emerging geopolitical threats.
  • Harden resilience sectors: Prioritise sectors tied to critical national infrastructure, such as energy, water, health, financial services, telecommunications, and transportation — where compromise could have cascading effects across public and private sectors.
  • Watch the inside: Strengthen internal access controls and insider threat monitoring, especially in high-risk areas.
  • Collaborate with industry peers: Share intelligence and response strategies and develop coordinated playbooks for geopolitical disruption scenarios.

Sectors such as telecommunications, energy, transportation, and water have been identified as potential targets of pre-positioning activity.

2. Hyperscalers: Shared cloud, shared risk
The hyperscale cloud model has enabled unprecedented agility, scale, security and innovation. But it has also created a new kind of concentration risk: a handful of providers now underpin critical operations across entire sectors. Their dominance in critical systems marks a shift from service providers to strategic digital actors, making them high-value targets in geopolitical cyber conflict. To reduce exposure and build resilience, organisations must lean in, treating hyperscalers as strategic partners. Collective defence isn’t optional — it’s foundational to safeguarding not just systems, but the entire ecosystem.

  • Secure the cloud as critical infrastructure: Cloud environments are part of your extended threat surface and should be treated with the same rigour. Establish strong identity management, rigorous authentication mechanisms, and robust cloud configuration protocols. Consider incorporating joint tabletop exercises into cloud or supplier contracts or embed them in governance practices.
  • Leverage hyperscaler strengths: Tap into their scale, threat intelligence, and automated defences as force multipliers for your cyber programme.
  • Advance collective defence: Collaborate with industry peers and providers to enable shared visibility, early warning, and ecosystem-wide resilience.
  • Architect for flexibility: Design for hybrid, multi-cloud or interoperable environments.
  • Stay engaged on policy and sovereignty issues: Confirm alignment with regulatory trends and geopolitical shifts affecting cloud governance.

A handful of providers now underpin critical operations across entire sectors.

3. Cybercrime-as-a-service: Expertise commoditised
Cybercrime has evolved into a professionalised industry, with ransomware groups operating with speed, scale, and coordination. Cybercriminals’ specialisation into discrete roles has lowered the barrier to entry, enabling even low-skilled actors to launch sophisticated attacks. Meanwhile, AI continues to expand what’s available in the cybercrime marketplace. This accelerating threat landscape calls for a renewed focus on foundational defences, faster intelligence integration and cross-sector coordination to build true cyber resilience.

  • Reinforce cybersecurity fundamentals: Regularly revalidate foundational defences, such as multi-factor authentication and patches, as AI and off-the-shelf attack tools enable rapid exploitation of known vulnerabilities.
  • Enhance threat intelligence: Ingest, analyse, and act on threat signals with speed; connect geopolitical context to technical indicators.
  • Strengthen public-private partnerships: Maintain proactive relationships with law enforcement and other government agencies, and sector-specific threat-sharing organisations.
  • Test business resilience regularly: Run thorough crisis simulations and tabletop exercises that include ransomware, third-party disruption, and geopolitical escalation scenarios. Include suppliers and critical partners to test real-world response coordination, notification timelines, and decision ownership across organizational boundaries.
  • Build cross-functional coordination: Align cyber strategy with legal, risk, and communications functions for unified response and decision-making.

Cybercriminals’ specialisation into discrete roles has lowered the barrier to entry, enabling even low-skilled actors to launch sophisticated attacks.

4. Agentic AI: Assistants and attackers
Agentic AI introduces a new phase in cybersecurity risk. Beyond automating tasks, these systems can make decisions, take actions, and pursue goals – expanding the potential for unintended behaviours or adversarial manipulation. Threat actors are exploring ways to exploit or hijack autonomous agents. Simultaneously, enterprises are accelerating AI adoption across functions, raising new considerations around governance, oversight, and operational safeguards. CISOs should stay ahead of this shift by integrating security by design and monitoring every phase of agent deployment.

  • Strengthen insider threat programmes: Include least privileged access to AI systems and training data in monitoring and detection protocols. Enhance visibility into where and how agents and large language models (LLMs) are being deployed.
  • Establish clear AI-governance frameworks: Define accountability, escalation paths, and human-in-the-loop requirements for agentic systems.
  • Implement AI-specific risk scoring: Assess models and use cases based on autonomy, exposure, and potential for misuse.
  • Adapt target operating models: Confirm security, risk, and IT functions are equipped to manage autonomous agents across the lifecycle.
  • Engage cross-functional partners early: Collaborate with legal, compliance, and technology teams from design through deployment to establish oversight, alignment, and resilience.

Refer to ongoing Agentic AI series from PwC’s Cyber & Risk Innovation Institute, also linked above.

Agentic AI can make decisions, take actions, and pursue goals – expanding the potential for unintended behaviours or adversarial manipulation.

What matters next isn’t just what CISOs do – but how they lead.

CISO leadership across the enterprise and ecosystem

Together, these strategic shifts are not just reshaping the threat landscape – they’re reshaping the role of the CISO itself. As geopolitics and cybercrime evolve, CISOs should increasingly operate not only as a defender of systems, but as strategic partners across the enterprise. Cybersecurity now intersects with political risk, supply chain integrity, operational resilience, and regulatory change.

Yet, many of these domains still operate in silos, despite facing shared threats. Breaking those silos is no longer optional.

That convergence extends further – cyber threats now overlap with fraud, insider risk, and physical security. These risk areas, once handled separately, are increasingly interlinked through shared adversaries and attack surfaces. Security teams should align around a shared threat model, and CISOs are well positioned to lead that integration.

But internal coordination is only part of the equation. Confirming management and the board are well informed and prepared is just as critical. For many CISOs, one of the most persistent challenges isn’t the technical response. It’s enabling clear upward communication. Management and the boards should be brought into the conversation before a crisis, not during. They need clarity on what the threat profile means, what decisions they’ll be responsible for, and when disclosure is required. That foundation should be laid long before a crisis hits.

Tabletop exercises are one of the most effective ways to build that preparedness. They can help teams across the organisation build muscle memory to act decisively under pressure. At the executive level, story-driven simulations let leadership rehearse risk, responsibility, and response, surfacing gaps no other method reveals until a real crisis hits.

At the board level, members should be briefed on outcomes of internal simulations, which often spotlight areas of board interest, such as ransomware payment decisions, disclosure triggers and potential trading halts. Some organisations opt not to involve the board directly in tabletop exercises to preserve the separation between operational and fiduciary rules. In those cases, lessons from tabletop exercises should flow directly into governance-level briefings and decision frameworks to confirm alignment without blurring roles.

Externally, collaboration is just as essential – especially with peers, suppliers, and public sector partners. In an era of systemic risk, interdependence and shared exposure, no organisation benefits from going it alone.

The next era of cyber leadership belongs to those who can connect threats, align teams, and lead cyber resilience across the boardroom, the business, and the ecosystem.

About the authors

Sean Joyce
Sean Joyce

Partner, Global Cybersecurity & Privacy Leader, PwC United States

Matt Gorham
Matt Gorham

Cyber & Risk Innovation Institute Leader, PwC United States

Rob Joyce
Rob Joyce

Cybersecurity Senior Fellow, former Cybersecurity Director, National Security Agency, PwC United States

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