37. Escalation in the Middle East Raises Cyber Risk for U.S. Public Finance

In the latest Hilltop Talks, Tom Kozlik, Head of Public Policy and Municipal Strategy at HilltopSecurities, sits down with Omid Rahmani, Associate Director of U.S. Public Finance, Cyber Risk at Fitch Ratings, to examine how a more volatile geopolitical environment is raising the stakes for municipalities and other public entities.From critical infrastructure exposure to vendor dependence, AI-enabled threat acceleration, and the limits of cyber insurance, this conversation makes one thing clear: public entities are not on the sidelines of cyber conflict. They are in it. 🔍 In this episode: • Why municipalities are viewed as legitimate targets in modern cyber conflict • How disruptions to water, energy, and other essential services could ripple across public finance • Why AI is making the threat landscape faster and harder to defend • What “act of war” exclusions mean for cyber insurance coverage • Why governance, business continuity, and cyber hygiene now matter more than ever As Rahmani explains, this is no longer just a technology problem. It is a risk management, governance, and resilience challenge for the entire public sector.