India Inc Improved Risk Handling in 2024, With AI Leading The Way: ICICI Lombard Report

Corporate India has sharpened its approach to risk with a 'Corporate India Risk Index' score of 65 in 2024, up from 64 in 2023, signalling optimised risk handling across sectors, according to a report by ICICI Lombard General Insurance Co. and Frost & Sullivan.

This uptick reflects a broader transformation in how businesses are responding to geopolitical instability, economic slowdowns, artificial disruption, and domestic uncertainty.

In 2024, Indian corporates did not just adapt, but rather excelled across sectors, with nine industries attaining 'Superior Risk Index' status.

Pharmaceutical, healthcare, BFSI, and manufacturing companies embedded resilience. AI adoption, cybersecurity fortification and sustainability initiatives emerged as dominant themes shaping risk priorities.

Despite external pressures from national elections, geopolitical unrest, tariff wars and global oil volatility, corporate India responded with more predictive, disciplined, and future-focused risk management practices, according to the report.

"We are seeing a shift toward long-term resilience, where AI, sustainability and digital agility are now foundational to corporate strategy," Sandeep Goradia, Chief Corporate Solutions, International, Bancassurance of ICICI Lombard said.

AI has emerged as the most defining trend of 2024 and many sectors responded proactively, strengthening compliance frameworks and investing in AI-specific risk mitigation, the press release said.