EY-FICCI Survey Highlights Critical Business Risks for Indian Companies
In a comprehensive business risk survey conducted by EY and the industry lobby group FICCI, cybersecurity breaches, geopolitical uncertainty, and climate-related events have emerged as the most critical risks facing Indian companies today. The survey, which involved 137 senior corporate decision-makers—including a significant one-third who were chief executives—underscores how businesses are grappling with a complex mix of disruptions that are reshaping corporate strategy and priorities.
Top Risks Identified by Corporate Leaders
According to the survey findings, cyber-attacks and data breaches are viewed as a major financial and reputational risk by a majority of respondents. Specifically, 51% of those surveyed identified cybersecurity breaches as the top risk shaping organizational performance. This is closely followed by changing customer demands and expectations at 49%, while 48% pointed to geopolitical events as a key risk factor. EY India emphasized in a statement that these risks are compelling companies to move beyond traditional approaches and adopt more agile strategies.
Geopolitical and Supply Chain Vulnerabilities
The survey detailed that India's position within global supply networks introduces layers of vulnerability, particularly due to heavy dependence on imported capital goods, components, and energy inputs. This reliance increases sensitivity to supply bottlenecks, price volatility, and shifts in trade policy. At the same time, the global geopolitical backdrop remains fluid, with changing tariff regimes, energy realignments, and shifts in global alliances influencing trade flows and cost structures. These factors are compressing planning cycles and heightening operational uncertainty, forcing firms to prioritize resilience over efficiency in their corporate strategies.
New Age Risks and Strategic Implications
New age risks are also reshaping business priorities, as highlighted in the survey. Cyber threats continue to escalate in sophistication, while the rapid infusion of artificial intelligence across operations introduces new governance, ethical, and security considerations. Additionally, climate-related disruptions, once considered long-horizon concerns, are now directly influencing strategic choices, capital allocation, and regulatory expectations. The survey noted that companies fear falling behind in AI adoption and are struggling to attract skilled talent, compounding these challenges.
Call for Enhanced Risk Management
The survey advocates for a shift from periodic risk assessments to continuous sensing, analytical foresight, and scenario-driven action. It stresses that collaboration across industries and with policymakers will be central to developing agile risk oversight strategies and sustaining long-term growth. Quoting Sudhakar Rajendran, EY India's Risk Consulting leader, the report stated, "Boards are being pushed to strengthen oversight, improve data quality, and integrate resilience into core strategy. The survey shows that leaders who increasingly recognize risk management as a strategic capability shall be poised for long-term competitiveness."
In summary, the EY-FICCI survey paints a picture of a rapidly evolving risk landscape where Indian companies must navigate cybersecurity threats, geopolitical shifts, and climate impacts to secure their future in an increasingly volatile global environment.
