NEW DELHI : The survey, titled ‘Risk outlook – A compass to India’s risk landscape’, is based on responses from senior leaders and shows that 51 per cent of respondents identified cybersecurity breaches as a key concern. This was followed by changing customer demands and expectations at 49 per cent, while 48 per cent flagged geopolitical events as a major risk factor.

Technology risk has become closely tied to operational continuity. As many as 61 per cent of respondents said rapid technological change and digital disruption were impacting their competitive position, with an equal proportion highlighting cyber-attacks and data breaches as serious financial and reputational threats.

More than half of the respondents (57 per cent) cited data theft and insider fraud as major risks, while 47 per cent pointed to the growing challenge of tackling increasingly sophisticated cyber threats.

Artificial intelligence emerged as a dual-edged risk. Around 60 per cent of respondents said inadequate adoption of emerging technologies, including AI, could hurt operational effectiveness. At the same time, 54 per cent felt AI-related risks, such as ethical and governance issues, were not being effectively managed.

Commenting on the findings, Rajeev Sharma, Chair of the Ficci Committee on Corporate Security & DRR, said the ability to anticipate and adapt to risk was becoming critical for sustained growth in a volatile business environment.

Sudhakar Rajendran, Risk Consulting Leader at EY India, noted that risks were increasingly converging rather than occurring in isolation. He said inflation, cyber threats, AI governance, climate exposure and regulatory changes were interacting in ways that directly influenced corporate performance and resilience, pushing boards to strengthen oversight and integrate risk management into core strategy.

Climate and ESG risks are also translating into direct financial exposure. Nearly 45 per cent of respondents cited the financial impact of climate change as a critical risk, while 44 per cent pointed to the impact of non-compliance with ESG disclosure requirements. About 42 per cent expressed concerns over the effectiveness of board oversight on ESG issues.

Operational and business continuity risks remain elevated. Supply chain disruptions were flagged by 54 per cent of respondents, physical events by 56 per cent, and ineffective real-time crisis management by 52 per cent.

Talent shortages and skill gaps continue to weigh heavily, with 64 per cent of respondents highlighting this as a major risk. Weak succession planning was cited by 59 per cent, while 41 per cent pointed to ambiguity around remote and hybrid working models as a risk to corporate culture.

On the regulatory front, 67 per cent of respondents said frequent regulatory changes needed urgent attention. Around 40 per cent reported that their compliance frameworks struggled to keep pace, while 39 per cent cited gaps in technology, budgets or resources as constraints.