New Delhi, Feb 8 (IANS) About 51 per cent of India Inc rank cybersecurity breaches as the top risk to organisational performance, a survey showed on Sunday.
This is followed closely by changing customer demands and expectations at 49 per cent, while 48 per cent point to geopolitical events as a key risk factor, according to the FICCI-EY ‘Risk Survey’.
The report draws on inputs from senior leaders across sectors, on factors affecting pricing, supply chains, talent strategies and technology investments, making risk management central to business strategy.
“In a business environment shaped by volatility, the ability to anticipate, absorb and adapt to risk is emerging as a defining capability for sustained growth. The report indicates that organisations are moving away from treating risk as episodic and are instead embedding it into strategic decision-making, governance structures and long-term planning,” said Rajeev Sharma, Chair, FICCI Committee on Corporate Security and Disaster Risk Reduction.
Technology risk is now tightly linked to operational continuity. The survey shows that 61 per cent of respondents feel that rapid technological change and digital disruption are affecting their competitive position, while an equal proportion (61 per cent) identify cyber-attacks and data breaches as major financial and reputational threats.
More than half, 57 per cent, report potential data theft and insider fraud as significant risks, and 47 per cent acknowledge difficulty in addressing increasingly sophisticated cyber threats, said the report.
Artificial intelligence (AI) is emerging as a dual risk area, where both under-adoption and weak governance are sources of concern.
The survey indicates that 60 per cent of respondents believe inadequate adoption of emerging technologies, including AI, can adversely impact operational effectiveness.
At the same time, 54 per cent feel AI-related risks, including ethical and governance issues, are not being effectively managed.
Sudhakar Rajendran, Risk Consulting Leader, EY India said, “Organisations are navigating a phase where multiple risks are converging rather than occurring in isolation”.
“Inflation, cyber threats, AI governance, climate exposure and regulatory change are interacting in ways that directly influence India Inc’s performance and resilience. Boards are being pushed to strengthen oversight, improve data quality and integrate resilience into core strategy,” Rajendran mentioned.
—IANS
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