Cybersecurity breaches and attacks have emerged as the top risks for Indian companies' organisational performance, with 51% of senior leaders citing it as their primary concern, according to a new survey released on Sunday.
The 'FICCI-EY Risk Survey 2026' identified changing customer demands (49%) and geopolitical events (48%) as the next two most critical risks facing businesses.
The report, which draws on inputs from senior decision-makers across various sectors, highlights that technology risk is now tightly linked to operational continuity.
According to the survey, 61% of respondents feel that rapid technological change and digital disruption are affecting their competitive position. An equal proportion (61%) identified cyber-attacks and data breaches as major financial and reputational threats.
"More than half, 57%, report potential data theft and insider fraud as significant risks, and 47% acknowledge difficulty in addressing increasingly sophisticated cyber threats," the report stated.
The findings are based on a web-based survey of 137 senior decision-makers, including CXOs. The technology sector had the highest representation in the study at 21%, followed by professional services.
Artificial Intelligence (AI) has emerged as a dual risk area for India Inc.
While 60% of respondents believe inadequate adoption of emerging technologies, including AI, can adversely impact operational effectiveness, 54% feel AI-related risks, including ethical and governance issues, are not being effectively managed.
Commenting on the findings, Rajeev Sharma, Chair, FICCI Committee on Corporate Security and DRR, said, "In a business environment shaped by volatility, the ability to anticipate, absorb and adapt to risk is emerging as a defining capability for sustained growth. The report indicates that organisations are moving away from treating risk as episodic and are instead embedding it into strategic decision-making".
The survey also flagged significant concerns regarding workforce dynamics. About 64% of respondents believe talent shortages and critical skill gaps might affect organisational performance, while 59% cited weak succession planning as a risk to stability.
On the regulatory front, 67% of respondents agreed that regulatory changes need to be addressed, with 40% indicating that their compliance frameworks struggle to keep pace with regulatory shifts.
Climate and ESG (Environmental, Social, and Governance) risks are also translating into financial exposure. Nearly 45% of respondents cited financial impact due to climate change as a critical risk to their operations in India, while 44% believe non-compliance with ESG disclosure mandates could have a significant impact.
"Organisations are navigating a phase where multiple risks are converging rather than occurring in isolation. Inflation, cyber threats, AI governance, climate exposure and regulatory change are interacting in ways that directly influence India Inc's performance and resilience," said Sudhakar Rajendran, Risk Consulting Leader, EY India.
Supply chain disruptions remain a worry for 54% of executives when it comes to operational and business continuity, according to the survey.
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(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
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