Cyber threats, geopolitical shocks, climate change top risks for Indian businesses, finds industry survey

New Delhi: Cybersecurity breaches, geopolitical uncertainty and climate-related events have emerged as the most critical risks for Indian companies as businesses grapple with a complex mix of disruptions, according to a business risk survey conducted by EY and industry lobby group Ficci.

The 137 respondents were senior corporate decision-makers, including a third who were chief executives.

EY said in a statement that the survey showed that cyber-attacks and data breaches are seen as a major financial and reputational risk by a majority of respondents, while companies also fear falling behind in artificial intelligence adoption and are struggling to attract skilled talent.

At the same time, volatile global trade is reshaping corporate strategy and forcing firms to prioritise resilience over efficiency.

Risk landscape

India’s position within global supply networks introduces layers of vulnerability, the survey said.

Heavy dependence on imported capital goods, components and energy inputs increases sensitivity to supply bottlenecks, price volatility and trade policy shifts, the survey said.

At the same time, the global geopolitical backdrop remains fluid—changing tariff regimes, energy realignments, and shifts in global alliances are influencing trade flows and cost structures, compressing planning cycles and increasing operational uncertainty, the survey pointed out.

Organizations must move from periodic risk assessments to continuous sensing, analytical foresight and scenario-driven action. Collaboration across industries and with policymakers will be central to developing agile risk oversight strategies and sustaining long-term growth, it said.

New age risks are also reshaping business priorities, the survey said.

Cyber threats continue to escalate in sophistication, while the rapid infusion of AI across operations introduces new governance, ethical and security considerations, the survey showed.

Climate-related disruptions, which were once considered long-horizon concerns, are now influencing strategic choices, capital allocation and regulatory expectations.

“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,” EY India stated, quoting its Risk Consulting leader Sudhakar Rajendran.

Cybersecurity breaches and attacks are identified as the top risk shaping organizational performance by 51% of respondents. This is followed closely by changing customer demands and expectations at 49%, while 48% point to geopolitical events as a key risk factor, EY India said.