Cyber risk is increasingly mischaracterised as a purely technical problem, obscuring its role as a systemic accelerator of economic, social, and institutional crises. This article argues that in digitally dependent and AI-amplified environments, cyber incidents rarely act as isolated disruptions; instead, they intensify existing fragilities across governance structures, markets, and public trust. By examining ransomware attacks, data breaches, disinformation campaigns, and AI-enabled failures, the analysis shows how cyber risk propagates beyond infrastructure damage to undermine economic stability, institutional legitimacy, and social cohesion. The article highlights how automation and artificial intelligence amplify both the speed and scale of disruption, extending the impact of cyber incidents well beyond technical recovery timelines. Drawing on contemporary cybersecurity governance frameworks and systemic risk literature, the article reframes cyber risk as a governance and preparedness challenge, rather than a narrow security concern. It concludes that effective cyber governance must integrate forensic accountability, economic foresight, and institutional resilience to prevent digital incidents from escalating into broader societal crises.