Large-scale cyber attacks, incidents of data breaches, and severe weather events are some of the emerging risks that are likely to affect the business environment in the country, says a study.
Large-scale cyber attacks, incidents of data breaches, and severe weather events are some of the emerging risks that are likely to affect the business environment in the country, says a study. Moreover, the inter-connected dynamics of geopolitics, technological advances, global economic integration and climate change mean that the manifestation of one risk is increasingly likely to influence others, as per the joint study by Marsh, a global leader in insurance broking and risk management society RIMS.
The survey that covered representatives of C-suites, executives, and risk professionals across 19 industries, noted that 88 per cent respondents identified cyber-attacks as the topmost risk. This was followed by data fraud or theft, cited by 85 per cent of respondents, volatile weather (84 per cent), severe energy price shock (81 per cent) and major financial failure (81 per cent) among the other top risks for India Inc.
The other risks identified include financial crises in key economies (80 per cent), water crises (76 per cent), shortfall of critical infrastructure (76 per cent), failure of urban planning (72 per cent) and failure of national governance (72 per cent). “Inability to model risks and budgetary concerns emerged as top barriers Indian organisations face. Upgrading risk assessment methods should be a priority given the rapidly changing risk landscape,” said Sanjay Kedia, Country Head and CEO Marsh India.
The survey further noted that a severe energy price shock emerged as the most significant concern (63 per cent) among contemporary risks, followed by deflation in a major economy (53 per cent) in 1-3 years. Besides, there was a risk of massive spread of infectious diseases (59 per cent) after a period of 3 years. This concern was on account of India’s burgeoning population, rapid urbanisation, and increasing human mobility, the survey noted.