Cyber attack/data breaches have been identified as the top business risk for organisations across India, according to data from re/insurance broker Aon.
The broker recently announced the results of its 2023 Global Risk Management Survey, which gathered data from almost 3,000 risk managers, c-suite leaders, treasurers, talent professionals and other executives across 61 countries and territories, in order to identify their most pressing business challenges.
According to the survey, the top business risks currently in India are cyber attack/data breach, business interruption, and failure to attract or retain top talent.
Cyber attack/data breaches is hailed as the top risk, rising from the seventh position in the 2021 survey to the number one risk facing Indian businesses today.
Aon noted that India’s dependency on technology is likely to increase with the widespread adoption of digital infrastructure.
The broker also warned, that due to increasing digitisation, cybercrimes are continuing to become rampant with costs and complexities associated with such breaches forcing companies to look at risk mitigation and transfer mechanisms to better manage their cyber risks.
Moreover, business interruption is ranked number two globally and for India.
Interestingly, only 16.7% of Indian companies have reported suffering a loss as compared to 32.2% globally.
Data also highlighted that failure to attract or retain top talent stands as the third biggest risk facing organisations across India.
It was also ranked fourth globally and is predicted to remain the fourth most critical risk by 2026, Aon stated.
Jon Pipe, CEO and principal officer of Aon India Insurance Brokers Private Limited, commented: “In a time of rapid change and heightened volatility, finance, risk, people leaders need to come together to understand how these risks are interconnected. The disruptive nature of the Indian business landscape has increased awareness around the need for cyber insurance and business interruption losses. With the use of advanced analytics and integrated Risk Capital and Human Capital capabilities, we are helping clients quantify, manage and match capital to the recognised risks today. We are always innovating on behalf of our clients to serve their future needs.”
Nitin Sethi, chief executive officer of Talent Solutions in India at Aon, said: “As leaders look to the future of their businesses, the risk landscape keeps changing due to the rising geopolitical and macroeconomic volatility. With more than 2x companies reporting a loss due to talent compared to cyber ranked number one, failure to attract/retain top talent can have serious repercussions in a volatile environment. Companies depend on top talent to bring in fresh thinking, new strategies, innovation and creativity — all critical elements to remaining competitive. Data-driven models can highlight the risk of attrition, the impact of engagement and other risk factors of talent loss. There is a compelling need for Indian businesses to therefore leverage advanced data analytics and experts to understand and manage the dynamics of integrated risks.”
The other risks that made it into the top ten for India included: failure to innovate/meet customer needs, property damage, product liability/recall, rapidly changing market trends, supply chain/distribution failure, personal liability (directors and officers), and increasing competition.
Notably, only three of the top five current risks in India are insurable, and less than half of the overall top ten are uninsurable at present.
