RISKS & CRISES IN THE NEWS - November 30, 2025
Andre Vermette 
Risks & Crises in the News
Date: November 30, 2025
Published by: International Association of Risk and Crisis Communications (IARCC)
The International Association of Risk and Crisis Communications monitors and reports on developments shaping business continuity, resilience, and trust. Each week, we examine risks across strategic, operational, financial, compliance and reputational domains.
Strategic Risk
Issue
U.S. diplomatic push on Ukraine
The United States is launching its most active diplomatic effort in months to end the war in Ukraine. President Trump said his peace plan has been “fine-tuned,” suggesting Washington sees a narrow opening for progress. He is sending longtime ally and envoy Steve Witkoff to meet Russian President Vladimir Putin—an unconventional choice that has drawn attention to the administration’s negotiation approach.
Army Secretary Dan Driscoll will meet Ukrainian officials to explore early de-escalation steps and possible pathways toward negotiations. Trump has said he may personally join the talks if early meetings show progress.
The renewed push reflects concerns about battlefield fatigue, humanitarian pressures, and the strain the conflict has placed on European defence budgets and U.S.–Russia relations. Allies are watching closely to see whether this effort can shift the conflict from stalemate to dialogue.
Issue
Canada pipeline politics
Canada faced heightened political tensions after Alberta and the federal government advanced a new pipeline plan to move prairie bitumen to Asian markets. British Columbia Premier David Eby strongly opposed the deal, arguing that it bypassed B.C.’s environmental rules, Indigenous consultation pathways, and jurisdiction over coastal impacts.
The announcement immediately triggered national fallout. Environment Minister Steven Guilbeault—well known for his environmental advocacy—resigned shortly afterward, revealing deep divisions within the federal cabinet over climate and energy priorities.
The controversy has raised questions about federal–provincial cooperation, Canada’s ability to deliver large infrastructure projects, and investor confidence in the country’s regulatory stability.
What’s Next
Allies and partners will watch whether the U.S. diplomatic push produces any early signals of progress or hardens existing positions.
In Canada, more political clashes and potential legal challenges are likely as competing visions for climate, energy, and Indigenous rights collide.
Operational Risk
Issue
Aviation safety — Airbus A320 recall
Airlines are working through the sudden recall of Airbus A320 jets due to an issue with the Elac computer system that controls aircraft pitch.
Two-thirds of affected aircraft need quick software fixes, but hundreds require hardware replacements that may keep them grounded for weeks. The recall hit just before the major U.S. travel weekend, causing widespread delays and capacity strain.
Issue
Cybersecurity trends: ransomware and supply-chain attacks
Ransomware activity continues to increase, with attackers using harsher tactics such as direct employee intimidation, data destruction threats, and targeting of software suppliers so a single attack can impact many organizations.
Critical sectors—healthcare, transportation, logistics—have experienced interruptions that show how easily operational disruptions cascade through connected systems.
What’s Next
Airlines will continue to face scheduling challenges and maintenance delays into December.
Governments are expected to push for stricter cyber reporting rules and stronger oversight of third-party digital providers.
Financial Risk
Issue
Markets were volatile in November.
Tech stocks dropped sharply, wiping out more than a trillion dollars in value in a short period.
Market confidence weakened as major indexes fell below key benchmarks and the volatility index stayed elevated.
But even with the drop, both stock and bond prices remain higher than historical norms, which makes markets more sensitive to negative surprises.
Uncertainty around U.S. trade policy, interest rates, and broader economic direction added to the turbulence.
Logistics networks were strained by the FAA grounding of the MD-11 fleet and ongoing disruptions from Red Sea attacks.
At the same time, hedge funds and some insurers increased use of leverage, and banks still carry significant unrealized losses on older bond holdings.
What’s Next
Investors are likely to stay cautious as policy uncertainty continues.
Given high leverage and elevated valuations, another economic or political shock could trigger rapid market swings.
Compliance Risk
Issue
Financial crime enforcement surged in 2025.
Regulators issued $1.23 billion in fines in the first half of the year—over four times higher than H1 2024—with North America accounting for most of the actions.
Crypto-related penalties were especially large, including more than $500 million from OKX and over $100 million from BitMEX.
Sanctions-related fines also increased sharply, reflecting geopolitical shifts.
Issue
Cyber and digital rulemaking accelerated.
The UK introduced a Cyber Security and Resilience Bill covering managed service providers, data centres, and other essential digital infrastructure, with top penalties reaching £17 million or 10% of global turnover.
The European Commission proposed a digital omnibus package to simplify reporting and align rules across AI, cybersecurity, and data protection, including extending GDPR breach notification windows and creating a single reporting entry point.
Issue
Regulatory divergence continued globally.
Italy mandated age verification for nearly 50 adult-content platforms; the European Commission flagged Meta and TikTok for Digital Services Act transparency issues; and New York clarified that compliance duties cannot be outsourced to vendors.
About 85% of compliance teams say the regulatory environment has become significantly more complex over the past three years.
What’s Next
More enforcement actions, particularly in crypto and sanctions, are expected.
Companies will face rising compliance costs and sharper scrutiny of digital and third-party risks.
Reputational Risk
Issue
CEO misconduct scandals
Reputational risk concerns continued to be shaped in late 2025 by high-profile leadership scandals that occurred earlier in the year.
In September 2025, Nestlé removed its CEO after just one year when it was revealed he had an undisclosed romantic relationship with a direct subordinate.
Retail giant Kohl’s also dismissed its CEO for similar reasons.
These incidents—while not occurring this week—remain influential examples of how workplace culture and leadership behavior can drive lasting reputational damage across sectors.
Issue
Workplace culture scrutiny: findings from 2024 still resonating
The UK Financial Conduct Authority’s workplace culture review, based on a February 2024 survey and published in October 2024, highlighted rising reports of bullying, harassment, and discrimination across more than 1,000 wholesale firms.
Although not new to this week, these findings continue to inform regulatory expectations and investor focus on culture, governance, and psychological safety.
Issue
Sector-wide spillover effects
Research shows that reputational harm often spreads beyond the company at the center of a scandal.
When a company faces misconduct, regulatory breaches, or safety failures, customers and investors frequently assume similar issues may exist across the industry.
This contagion effect means earlier scandals at large firms continue to shape late-2025 perceptions of industry behavior and trustworthiness.
What’s Next
Boards are likely to increase oversight of executive conduct and strengthen internal reporting channels.
Companies should expect faster reputational contagion when peers face scrutiny, especially in sectors already seen as vulnerable to culture or governance problems.
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Categories: : RISKS/CRISES IN THE NEWS WEEKLY
