Is Cyber Breaches the Top Risk to India Inc's Performance?
Synopsis
A recent survey reveals that 51% of Indian corporations identify cybersecurity breaches as their foremost risk to organizational performance. As companies navigate a volatile environment, the need for effective risk management becomes paramount. The findings highlight the evolving landscape of threats, including AI governance and data security, necessitating strategic adaptation.
Key Takeaways
51% of companies see cybersecurity breaches as the top risk.
Changing customer demands and geopolitical events follow closely.
Organizations are integrating risk management into core strategies.
AI governance and ethical issues are emerging risks.
61% identify cyber threats as financial risks.
New Delhi, Feb 8 (NationPress) Approximately 51% of Indian corporations consider cybersecurity breaches as the primary threat to their organizational performance, according to a recent survey released on Sunday.
This concern is closely followed by shifting customer demands at 49%, while geopolitical events are identified as a significant risk factor by 48%, as reported in the FICCI-EY ‘Risk Survey’.
The report is based on insights from senior executives across various sectors regarding factors that influence pricing, supply chains, talent strategies, and technology investments, highlighting the importance of risk management in business strategy.
“In a business landscape marked by volatility, the ability to foresee, absorb, and adapt to risks is becoming a crucial capability for sustained growth. The report suggests that organizations are transitioning from viewing risk as a sporadic issue to integrating it into their strategic decision-making, governance frameworks, and long-term planning,” explained Rajeev Sharma, Chair of the FICCI Committee on Corporate Security and Disaster Risk Reduction.
Technology risk is now closely associated with operational continuity. The survey reveals that 61% of participants believe that rapid technological changes and digital disruptions are impacting their competitive edge, while the same percentage identifies cyber-attacks and data breaches as significant financial and reputational threats.
More than half of the respondents, specifically 57%, see potential data theft and insider fraud as major risks, with 47% admitting to challenges in tackling increasingly sophisticated cyber threats, as reported.
Artificial intelligence (AI) is emerging as a dual risk area, with both under-utilization and poor governance being sources of concern.
The survey indicates that 60% of respondents perceive inadequate adoption of emerging technologies, including AI, as detrimental to operational effectiveness. Simultaneously, 54% express concerns that AI-related risks, such as ethical and governance issues, are not being managed effectively.
Sudhakar Rajendran, Risk Consulting Leader at EY India stated, “Organizations are navigating a period where various risks are converging rather than occurring in isolation.”
“Inflation, cyber threats, AI governance, climate exposure, and regulatory changes are interplaying in ways that directly impact the performance and resilience of Indian corporations. Boards are urged to enhance oversight, improve data quality, and incorporate resilience into their core strategies,” Rajendran added.
Point of View
It's evident that the evolving landscape of cybersecurity is a pressing concern for Indian corporations. Organizations must prioritize strategic risk management to ensure resilience and adaptability in the face of emerging threats. The survey underscores the importance of integrating technology and governance to navigate these challenges effectively, marking a significant shift in corporate strategy in India.
NationPress
9 May 2026
Frequently Asked Questions
What percentage of Indian corporations consider cybersecurity breaches a top risk?
Approximately 51% of Indian corporations rank cybersecurity breaches as the primary threat to their organizational performance.
What are other significant risks identified in the survey?
Other risks include changing customer demands at 49% and geopolitical events at 48%.
How are organizations responding to these risks?
Organizations are embedding risk management into their strategic decision-making and governance structures.
What role does artificial intelligence play in risk management?
AI presents both potential benefits and risks, including concerns about under-utilization and governance issues.
How do cyber-attacks affect businesses financially?
Cyber-attacks and data breaches are regarded as significant financial and reputational threats by 61% of survey respondents.
