Ransomware in 2026: What Boards Actually Need to Know
Simon Crimp
KEY TAKEAWAYS
- Ransomware is now a routine operating risk rather than a rare IT event, so boards need to treat it as a core resilience and governance issue.
- Attacks have become more sophisticated, with data theft, extortion and AI-enabled phishing increasing both the pressure on organisations and the speed of attacks.
- The biggest weaknesses are often not just technical gaps but failures in governance, recovery planning, supplier oversight and crisis decision-making.
- Boards that test their preparedness, harden backups, clarify decision rights and rehearse realistic scenarios are far more likely to reduce impact and recover faster.
3 MIN READ
Globally, ransomware is now responsible for 44% of all breaches a 37% increase compared to 2024, underlining that it is now part of routine operating risk rather than a rare incident. In larger organisations, ransomware was a component of 39% of breaches, while for small and midsize businesses, ransomware was involved in 88% of breaches. [Source: Verizon 2025 Data Breach Investigations Report (DBIR).]
Recent UK cyber security survey data shows that around half of UK businesses report some kind of cyber breach or attack in a typical year – about 50% in 2024 [Source: Sophos – State of Ransomware 2024 (government sector breakdown).]
For boards, the question is no longer if you will be hit, but how ready you will be when it happens.
From Disturbing Headlines to Everyday Risk
Ransomware can now:
- Halt factories and logistics chains.
- Disrupt hospitals, pharmacies, and clinical systems.
- Lock up municipal and education services.
- Trigger regulatory investigations and investor scrutiny within days.
A major ransomware event has become a board‑defining moment: how quickly the chair and non‑executives understand the situation, how clearly they set expectations, and how credibly they engage regulators, customers and investors.
Ransomware is Now a Professionalised Ecosystem, Not Lone Hackers
Ransomware is now a structured industry. ITPro’s analysis of the market in 2025 ('Rocketing number of ransomware groups as new smaller players emerge') counted more than 70 active groups, up sharply year‑on‑year. Many operate with:
- Ransomware‑as‑a‑Service (RaaS) – renting out tools and infrastructure to affiliates in exchange for a share of proceeds.
- Negotiation teams – specialists who handle communications with victims using structured playbooks.
- Data leak operations – dedicated sites and staged disclosure campaigns to maximise reputational pressure.
Motivation, capability and persistence on the attacker side are all increasing.
Double and Triple Extortion Have Become the Normal
The simple 'encrypt files, demand payment' model has largely given way to more complex campaigns.
DigitalXRAID’s Annual Threat Pulse 2024 reports that over 80% of ransomware attacks now involve data theft as well as encryption. Many also add further elements such as DDoS attacks or direct harassment of staff and customers – so‑called triple extortion.
In practice, attackers often enter quietly, explore your network, exfiltrate sensitive data and only then reveal themselves, already in a position of leverage.
AI is Driving Scale, Speed and Adaptation
With a ransomware attack, first they need to get through the door. In 2026, phishing is still the primary way in – in recent UK surveys, around 85% of organisations that suffered a breach cited phishing as the main attack vector.
Those attacks are becoming increasingly effective as AI rapidly updates the ransomware toolkit. A KnowBe4 report highlights a double‑digit rise in phishing volumes, with more than 80% of recent campaigns using AI‑powered polymorphic techniques – attackers generate fast‑changing variants of the same scam so it is harder for filters and analysts to spot a repeating pattern.
For boards, this shows up as:
- Highly convincing phishing and social engineering – emails and messages that look and read like genuine internal correspondence, tailored to your sector and even to your executives.
- Faster exploitation of vulnerabilities – AI‑assisted tools that scan for weaknesses and help weaponise them at scale.
- Automation of attack stages – semi‑automated lateral movement, credential theft, and data exfiltration once inside the network.
The net effect of AI is more attempts, better‑crafted communications and a higher probability that attackers will eventually find a way through.
Board Insight: ransomware is now as much about privacy, trust, safety, and continuity of service as it is about IT systems availability.
At the same time, AI and automation are also changing the defence side. IBM’s breach research shows that organisations using security AI and automation can cut the breach lifecycle by around 108 days, with materially lower overall costs. [Source: IBM Cost of a Data Breach – ransomware & AI analysis (2023–24 coverage)]
Boards should be asking management how they are using AI defensively, not just preparing for attackers who use it offensively.
Where Are Your Weak Spots?
When boards review real incidents, their own or peers’, we see the same patterns of vulnerability in both systems and culture.
On the Technical Side
- For complex enterprises, whether financial services, manufacturing, telecoms, retail or critical infrastructure operators, the attack surface has grown with every merger, new platform and outsourcing deal.
- Legacy systems and flat, poorly segmented networks turn a small foothold in one business unit into an enterprise‑wide outage across plants, trading floors, shared services and customer‑facing channels.
- Weak identity and access controls (incomplete MFA, shared or orphaned accounts, poor privileged‑access management) give attackers too many keys into high‑value systems.
- Complex webs of strategic outsourcers, SaaS platforms, cloud providers and key suppliers create hidden concentration risk; a single payments processor, logistics partner or IT service provider can become a single point of failure for the whole group.
- Backups are not as robust as assumed – distributed across data centres and clouds, but still stored on connected systems, not immutable, or never tested end‑to‑end.
UK data shows that while attackers increasingly try to compromise backups, most organisations that recover do so from their own backup and resilience measures rather than by paying. The proportion of UK enterprises paying ransoms has dropped from almost half in 2023 to under a fifth in 2025, as more boards push for robust, tested backup strategies.
That turns backups from a comfort blanket into a potential liability if they are not properly segmented, hardened and exercised under realistic scenarios.
On the Governance and Culture Side
There is no rehearsed ransomware playbook that reflects how the enterprise actually operates across regions, business lines and shared services; roles, decisions and communication paths are improvised under pressure.
- Decision rights – for system shutdowns, restoration priorities, ransom‑related choices and regulator notifications – are unclear, particularly in matrixed organisations with group, regional and business‑unit leadership.
- Crisis communications are under‑prepared; spokespeople, stakeholder maps and holding statements are created on the fly for customers, partners, regulators, investors and staff.
- Board reporting has focused on tools, projects and technical indicators rather than resilience outcomes, business impact and time‑to‑recover for critical services.
- These are not purely technical failings; they are symptoms of how seriously ransomware has (or has not) been treated as an enterprise risk at board level.
Board Questions to Put on the Agenda
Rather than delving into technical details, effective boards focus on clear, practical questions.
You can use the following as a standing agenda aide‑mémoire:
Threat and Exposure
- Which services, geographies, and customer segments would hurt most if hit by ransomware?
- How are we monitoring ransomware trends relevant to our sector and adjusting our controls accordingly (for example, insights from ENISA, sector regulators, and major incidents in our industry)?
- What do recent statistics (for example, Sophos, Verizon DBIR) imply about how often organisations like ours are being tested?
Preparedness and Resilience
- Do we have a documented, rehearsed ransomware playbook covering IT, operations, finance, legal, and communications?
- When was it last tested with ExCo and the board present? What changed as a result?
- How quickly can we detect, contain and recover from an attack on our most important services? What evidence do we have – including realistic exercise results?
- Are our backups segmented, immutable, and regularly tested in realistic scenarios, given how frequently attackers now target them?
Third‑party and Supply‑chain Risk
- Which critical suppliers or partners, if compromised, could be an entry point or amplification path for ransomware?
- How do we assess, contract, and monitor cyber resilience in key suppliers and cloud providers – and how does this align with NIS2, DORA, and other relevant frameworks?
People, Culture and Training
- How are we equipping staff in high‑risk roles (finance, HR, senior executives) to recognise and handle phishing and social‑engineering attempts?
- Is ransomware risk embedded in our broader risk culture and leadership behaviours, or treated as an annual awareness exercise?
When the Worst Happens: A 72‑Hour Board Checklist
No set of controls is perfect. When a serious incident lands, the board’s role is to ensure the response is being run well, not to run it themselves. In the first 72 hours, boards should look for:
Governance and Roles
- A pre‑defined major incident structure, typically chaired by the CEO or COO, with clear workstreams for technical response, operations, legal, communications and customer support.
- Clarity on the board’s role: oversight, major risk appetite decisions (for example, extended shutdown vs partial restart), regulatory posture, and stakeholder expectations.
- A single source of truth for updates, with an agreed cadence, so directors are not relying on conflicting informal channels.
Regulatory and Legal Posture
- A clear view of which regulators and authorities may need to be notified, and on what timelines (for example, data protection regulators, sector regulators, stock exchanges, law‑enforcement bodies).
- Legal advice on ransom‑related decisions, including sanctions, money‑laundering and law‑enforcement considerations.
Stakeholder Communications
- Prepared holding statements and trained spokespeople, updated as facts evolve.
- Joined‑up messaging to customers, employees, suppliers, investors, and the media – avoiding both premature reassurance and damaging silence.
Decisions taken in these first few days – particularly on disclosure, negotiations, and service restoration – will shape regulatory, legal, and reputational outcomes for years.
Conclusion: Turning Statistics into Better Decisions
ENISA continues to place ransomware among the prime threats in Europe’s threat landscape, with significant impact across sectors. Sophos and Verizon’s latest numbers reinforce that ransomware is both common and costly – but they also show that organisations which invest in preparation and resilience are recovering faster and at lower cost.
Boards that deal well with ransomware typically:
- Treat it as a standing agenda item within operational resilience and risk, not an annual technical presentation.
- Set clear expectations of ExCo on preparedness, testing, and third‑party resilience.
- Invest in regular crisis simulations involving both executives and non‑executive directors.
- Use real incidents – their own or others’ – and fresh data as catalysts to lift maturity, not simply as reasons to "move on" once systems are restored.
Frameworks such as NIST’s Cybersecurity Framework 2.0 and EU regulations like NIS2 and DORA reinforce this direction by making governance, resilience testing, and third‑party oversight explicit board responsibilities.
The message for boards in 2026 is straightforward: you cannot eliminate the ransomware threat, but you can materially change the outcome when it arrives.
How Cambridge MC Can Help
Cambridge Management Consulting supports boards and executive teams to move from concern to confidence with practical, senior‑led work that strengthens readiness quickly:
- Cyber Stress Tests – clarifying your "crown jewel" services and stress‑testing how cyber, technology and operations work together under real disruption.
- Ransomware readiness health checks – focusing on identity, segmentation, backups, recovery, and third‑party exposure – with a prioritised remediation plan.
- Board and ExCo simulations – realistic 72‑hour scenarios that sharpen decision‑making, governance, and communications under pressure.
If you’d like a clear view of your readiness – and a practical plan to improve it – Cambridge MC’s Digital Transformation and Cyber Security teams can run a rapid ransomware resilience assessment and board‑level simulation to identify gaps, agree priorities, and build confidence before the next test arrives.
Key References
- Verizon 2025 Data Breach Investigations Report (DBIR)
- UK Government Cyber Security Breaches Survey (via DCMS, 2024 and 2025)
- Trustwave 2025 analysis of UK ransomware trends
- ITPro 2025 coverage of falling ransom payments in UK enterprises
- UK-focused cyber statistics round-ups and sector-specific analysis
About the Author
About Us
Cambridge Management Consulting (Cambridge MC) is an international consulting firm that helps companies of all sizes have a better impact on the world. Founded in Cambridge, UK, initially to help the start-up community, Cambridge MC has grown to over 200 consultants working on projects in 25 countries. Our capabilities focus on supporting the private and public sector with their people, process and digital technology challenges.
What makes Cambridge Management Consulting unique is that it doesn’t employ consultants – only senior executives with real industry or government experience and the skills to advise their clients from a place of true credibility. Our team strives to have a highly positive impact on all the organisations they serve. We are confident there is no business or enterprise that we cannot help transform for the better.
Cambridge Management Consulting has offices or legal entities in Cambridge, London, New York, Paris, Dubai, Singapore and Helsinki, with further expansion planned in future.
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Outcomes & Results Increased Connectivity: Cambridge MC successfully identified and evaluated multiple connectivity paths for the data centre. By exploring various types of connectivity, including internet access, point-to-point capacity, wavelengths, and dark fibre, we provided a comprehensive solution that significantly enhanced network resilience and reliability. Greater Control & Flexibility: Our recommendations for building a local fibre network around the data centre allowed for greater control and flexibility in connecting to nearby points of presence, ensuring continuous operations even in the event of a failure in the primary connection. New Vendors: The team’s extensive network of industry contacts and deep understanding of the regional telecommunications landscape allowed for a thorough and nuanced evaluation of potential vendors and connectivity options. 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What is the Contract Lifecycle Management and Why does it Matter? The future success of your business depends on realising the value that’s captured in its contracts. From vendor agreements to employee documents, everywhere you look are commitments that need to be met for your business to succeed. The type of contract and the nature of goods or services it covers will determine what sort of management activities might be needed at each stage. How your company is organised will also determine which departments or individuals are responsible for what activities at each stage. Contract Lifecycle Management, from a buyer's perspective, is the process of defining and designing the actual activities needed in each stage for any specific contract, allocating ownership of the activities to individuals or groups, and monitoring the performance of those activities as the contract progresses through its lifecycle. The ultimate aim is to minimise surprises, ensure the contracted goods or services are delivered by the vendor in accordance with the contract, and realise the expected business benefits and value for money. The Problem of Redundant Spend in Contracts Despite the built-in imbalance of information favoring suppliers, companies still choose to oversee these vendors internally. However, many adopt a reactive, unstructured approach to supplier management and struggle to bridge the gap between contractual expectations and actual performance. Currently, where governance exists, it is often understaffed, with weak, missing, or poorly enforced processes. The focus is primarily on manual data collection, validation, and basic retrospective reporting of supplier performance, rather than on proactively managing risk, relationships, and overall performance. The amount of redundant spend in contracts can vary widely depending on the industry, the complexity of the contracts, and how rigorously they are managed. For further information on this, Cambridge MC’s case studies provide insights into typical ranges and common sources of redundant spend. As a general estimate, industry analysts often state that redundant spend can account for as much as 20% of total contract value. In some cases, especially in poorly managed contracts, this can be much higher. What is AI-driven Contract Management? Artificial Intelligence (AI) is redefining contract management, transforming a historically time-consuming and manual process into a streamlined, efficient, and intelligent operation. Traditionally, managing contracts required legal teams to navigate through extensive paperwork, drafting, reviewing, and monitoring agreements — a process prone to inefficiencies and human error. With the emergence of artificial intelligence, particularly generative AI and natural language processing (NLP), this area of operations is undergoing a paradigm shift. This step change is not without concerns however, as there are the inevitable risks of AI hallucinations, training data biases and the threat to jobs. AI-driven contract management solutions not only automate repetitive tasks but also uncover valuable insights locked up in contract data, improving compliance and reducing the risks that are often lost in reams paperwork and contract clauses. Put simply, AI can automate, analyse, and optimise every aspect of your contract lifecycle. From drafting and negotiation to approval, storage, and tracking, AI-powered platforms enhance precision and speed across these processes; in some cases reducing work that might take several days to minutes or hours. By discerning patterns and identifying key terms, conditions, and concepts within agreements, AI enables businesses to parse complex contracts with ease and efficiency. In theory, this empowers your legal and contract teams (rather than reducing them), allowing personnel to focus on high-level tasks such as strategy rather than minutiae. However, it is important to recognise that none of the solutions available in the marketplace today offer companies an integrated supplier management solution, combining a comprehensive software platform, capable of advanced analytics, with a managed service. Cambridge Management Consulting is one of only a few consultancies that offers fully integrated Contract Management as a Service (CMaaS). Benefits of Integrating AI into your Contract Lifecycle Management Cambridge MC’s Contract Management as a Service (CMaaS) 360-degree Visibility: Enable your business to gain 360-degree visibility into contracts and streamline the change management process. Real-time Data: Gain real-time performance data and granularly compare it against contractually obligated outcomes. More Control: Take control of your contracts and associated relationships with an integrated, centralised platform. Advanced meta data searches provide specific information on external risk elements, and qualitative and quantitative insights into performance. Reduces Costs: By automating manual processes, businesses can significantly reduce administrative costs associated with contract management. AI-based solutions eliminate inefficiencies in the contract lifecycle while minimising reliance on external legal counsel for routine tasks. Supplier Collaboration: Proactively drive supplier collaboration and take a data-driven approach towards managing relationships and governance process health. Enhanced Compliance: AI tools ensure that contracts adhere to internal policies and external regulations by flagging non-compliant clauses during the drafting or review stage. This proactive approach reduces the risk of costly disputes or penalties. Reduces Human Errors: In traditional contract management processes, human errors can lead to missed deadlines and hidden risks. AI-powered systems use natural language processing to identify inconsistencies or inaccuracies in contracts before they escalate into larger issues. Automates Repetitive Tasks: AI-powered tools automate time-consuming tasks such as drafting contracts, reviewing documents for errors, and extracting key terms. This frees up legal teams to focus on higher-value activities like strategic negotiations and risk assessment. We can accurately model and connect commercial information across end-to-end processes and execution systems. AI capabilities then derive and apply automated commercial intelligence (from thousands of commercial experts using those systems) to error-proof complex tasks such as searching for hidden contract risks, determining SLA calculations and performing invoice matching/approvals directly against best-in-class criteria. Contract management teams using AI tools reported an annual savings rate that is 37% higher than peers. Spending and tracking rebates, delivery terms and volume discounts can ensure that all of the savings negotiated in a sourcing cycle are based on our experience of managing complex contracts for a wide variety of customers. Our Contract Management as a Service, underpinned by AI software tooling, has already delivered tangible benefits and proven success. 8 Steps to Transition Your Organisation to AI Contract Management Implementing AI-driven contract management requires a thoughtful and structured approach to ensure seamless integration and long-term success. By following these key steps your organisation can avoid delays and costly setbacks. Step 1 Digitise Contracts and Centralise in the Cloud: Begin by converting all existing contracts into a digital format and storing them in a secure, centralised, cloud-based repository. This ensures contracts are accessible, organised, and easier to manage. A cloud-based system also facilitates real-time collaboration and allows AI to extract data from various file formats, such as PDFs and OCR-scanned images, with ease. Search for and retrieve contracts using a variety of advanced search features such as full text search, Boolean, regex, fuzzy, and more. Monitor upcoming renewal and expiration events with configurable alerts, notifications, and calendar entries. Streamline contract change management with robust version control and automatically refresh updated metadata and affected obligations. Step 2 Choose the Right AI-Powered Contract Management Software: Selecting the right software is a critical step in setting up your management system. Evaluate platforms based on their ability to meet your organisation’s unique contracting needs. Consider key factors such as data privacy and security, integration with existing systems, ease of implementation, and the accuracy of AI-generated outputs. A well-chosen platform will streamline workflows while ensuring compliance and scalability. Step 3 Understand How AI Analyses Contracts: To make the most of AI, it’s essential to understand how it processes contract data. AI systems use Natural Language Processing (NLP) to interpret and extract meaning from human-readable contract terms, while Machine Learning (ML) enables the system to continuously improve its accuracy through experience. These combined technologies allow AI to identify key clauses, conditions, and obligations, as well as extract critical data like dates, parties, and legal provisions. Training your team on these capabilities will help them to understand the system and diagnose inconsistencies. Step 4 Maintain Oversight and Validate AI Outputs: While AI can automate repetitive tasks and significantly reduce manual effort, human oversight is indispensable. Implement a thorough process for spot-checking AI-generated outputs to ensure accuracy, compliance, and alignment with organisational standards. Legal teams should review contracts processed by AI to verify the integrity of agreements and minimise risks. This collaborative approach between AI and human contract management expertise ensures confidence in the system. Step 5 Refine the Data Pool for Better Results: The quality of AI’s analysis depends heavily on the data it is trained on. Regularly refine and update your data pool by incorporating industry-relevant contract examples and removing errors or inconsistencies. A well-maintained data set enhances the precision of AI outputs, enabling the system to adapt to evolving business needs and legal standards. Step 6 Establish Frameworks for Ongoing AI Management: To ensure long-term success, set clear objectives and measurable goals for your AI contract management system. Define key performance indicators (KPIs) to track progress and prioritise features that align with your organisation’s specific requirements. Establish workflows and governance frameworks to guide the use of AI tools, ensuring consistency and accountability in contract management processes. Step 7 Train and Empower Your Teams: Equip your teams with the skills and knowledge they need to use AI tools effectively. Conduct hands-on training sessions to familiarise users with the platform’s features and functionalities. Create a feedback loop to gather insights from your team, allowing for continuous improvement of the system. Avoid change resistance by using change management methodologies, as this will foster trust in the technology and drive successful adoption. Step 8 Ensure Ethical and Secure Use of AI: Tools Promote transparency and integrity in the use of AI-driven contract management. Legal teams should have the ability to filter sensitive information, secure data within private cloud environments, and trace data back to its source when needed. By prioritising data security and ethical AI practices, organisations can build trust and mitigate potential risks. With the right tools, training, and oversight, AI can become a powerful ally in achieving operational excellence as well as reducing costs and risk. Overcoming the Technical & Human Challenges While the benefits are compelling, implementing AI in contract management comes with some unique challenges which need to be managed by your leadership and contract teams: Data Security Concerns: Uploading sensitive contracts to cloud-based platforms risks data breaches and phishing attacks. Integration Complexities: Incorporating AI tools into existing systems requires careful planning to avoid disruptions and downtime. Change Fatigue & Resistance: Training employees to use new technologies can be time-intensive and costly. There is a natural resistance to change, the dynamics of which are often overlooked and ignored, even though these risks are often a major cause of project failure. Reliance on Generic Models: Off-the-shelf AI models may not fully align with your needs without detailed customisation. To address these challenges, businesses should partner with experienced providers who specialise in delivering tailored AI-driven solutions for contract lifecycle management. Case Study 1: The CRM That Nobody Used A mid-sized company invests £50,000 in a cutting-edge Customer Relationship Management (CRM) system, hoping to streamline customer interactions, automate follow-ups, and boost sales performance. The leadership expects this software to increase efficiency and revenue. However, after six months: Sales teams continue using spreadsheets because they find the CRM complicated. Managers struggle to generate reports because the system wasn’t set up properly. Customer data is inconsistent, leading to missed opportunities. The Result: The software becomes an expensive shelf-ware — a wasted investment that adds no value because the employees never fully adopted it. Case Study 2: Using Contract Management Experts to Set Up, Customise and Provide Training If the previous company had invested in professional services alongside the software, the outcome would have been very different. A team of CMaaS experts would: Train employees to ensure adoption and confidence in using the system. Customise the software to fit business needs, eliminating frustrations. Provide ongoing support, so issues don’t lead to abandonment. Generate workflows and governance for upward communication and visibility of adherence. The Result: A fully customised CRM that significantly improves the Contract Management lifecycle, leading to: more efficient workflows, more time for the contract team to spend on higher value work, automated tasks and event notifications, and real-time analytics. With full utilisation and efficiency, the software delivers real ROI, making it a strategic investment instead of a sunk cost. Summary AI is reshaping the way organisations approach contract lifecycle management by automating processes, enhancing compliance, reducing risks, and improving visibility into contractual obligations. From data extraction to risk analysis, AI-powered tools are empowering legal teams with actionable insights while driving operational efficiency. However, successful implementation requires overcoming challenges such as data security concerns and integration complexities. By choosing the right solutions, tailored to their needs — and partnering with experts like Cambridge Management Consulting — businesses can overcome the challenges and unlock the full potential of AI-based contract management. A Summary of Key Benefits Manage the entire lifecycle of supplier management on a single integrated platform Stop value leakage: as much as 20% of Annual Contract Value (ACV) Reduce on-going governance and application support and maintenance expenses by up to 60% Deliver a higher level of service to your end-user community. Speed without compromise: accomplish more in less time with automation capabilities Smarter contracts allow you to leverage analytics while you negotiate Manage and reduce risk at every step of the contract lifecycle Up to 90% reduction in creating first drafts Reduction in CLM costs and extraction costs How we Can Help Cambridge Management Consulting stands at the forefront of delivering innovative AI-powered solutions for contract lifecycle management. With specialised teams in both AI and Contract Management, we are well-placed to design and manage your transition with minimal disruption to operations. We have already worked with many public and private organisations, during due diligence, deal negotiation, TSAs, and exit phases; rescuing millions in contract management issues. Use the contact form below to send your queries to Darren Sheppard , Senior Partner for Contract Management. Go to our Contract Management Service Page
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