About 51% of India Inc views cybersecurity breaches as the primary risk to organizational performance, according to a recent survey. This concern is closely followed by changing customer demands and expectations at 49%, with 48% highlighting geopolitical events as significant risk factors, as per the FICCI-EY ‘Risk Survey.’
The survey, drawing insights from senior leaders across various sectors, emphasizes the impact of factors like pricing, supply chains, talent strategies, and technology investments on risk management within business strategies. Rajeev Sharma, Chair of FICCI Committee on Corporate Security and Disaster Risk Reduction, notes the shift towards integrating risk into strategic decision-making and governance structures for sustained growth.
Technology risk is now intricately linked to operational continuity, with 61% of respondents citing rapid technological change and digital disruption affecting their competitive position. Additionally, an equal proportion (61%) identifies cyber-attacks and data breaches as major financial and reputational threats.
More than half of the respondents, 57%, express concerns over potential data theft and insider fraud as significant risks, while 47% acknowledge challenges in addressing increasingly sophisticated cyber threats. The survey also highlights artificial intelligence (AI) as a dual risk area, with 60% of respondents believing that inadequate adoption of emerging technologies, including AI, can negatively impact operational effectiveness.
On the governance front, 54% of respondents feel that AI-related risks, encompassing ethical and governance issues, are not being effectively managed. Sudhakar Rajendran, Risk Consulting Leader at EY India, points out the convergence of multiple risks faced by organizations, such as inflation, cyber threats, AI governance, climate exposure, and regulatory changes, impacting India Inc’s performance and resilience. Boards are urged to enhance oversight, improve data quality, and integrate resilience into core strategies.
