Sanjeev Mantri, MD & CEO, ICICI General Insurance
Profound urgency of Climate Change continues to be undervalued among India Inc. Only Energy and Utilities, Hospitality, Infrastructure and Real Estate and FMCG sectors identified Climate Change and Natural Disasters as the top risk
ICICI Lombard General Insurance Company, the second largest Indian general insurer has partnered with IRM (Institute of Risk Management), an international certifying body for Enterprise Risk Management (ERM) Examinations across 140 countries, to prepare an exclusive joint report offering invaluable insights into India Inc.’s risk landscape.
Specifically, it offers a detailed analysis of risk trends in 10 key sectors-BFSI, Energy and Utilities, Pharma, Hospitality, Infrastructure and Real Estate, FMCG sectors, Logistics, Manufacturing & Distribution, Service and Media & Technologies.
Sanjeev Mantri, MD & CEO, ICICI General Insurance commented,“ India’s vast and diverse industrial landscape is standing on a cliff of unparalleled opportunities. The winds of change are sweeping across our nation, ushering in a new era of growth and transformation.
“Being a top player in the private general insurance sector, we seek to address issues that have an impact on both our local communities and the global community. While insurance has a crucial role in acting as a safety net for businesses, it is equally vital to revisit the fundamentals of risk management,” he said.
The key Insights underscore essential disparities in risk perceptions and preparedness
between global entities and Indian counterparts –
Knowing and Understanding Risk in today’s corporate landscape
Looking at risk with the right perception: Global enterprises discern a riskier
environment compared to Indian counterparts. The global environment rating for total
risk is between 5.9 – 6.4 whereas Indian enterprises rate from 4.2 – 6.3 on a scale 0
to 10, 10 being highest risk
Mind the Gap: It requires accurate, refined and enhanced preparedness to confront
top risks. According to the findings, 67% organizations not fully prepared to face even
the top risk.
Risk Coverage Deficiency: Poised at the precipice of progress, it needs to elevate
its risk management solution design. Close to one third of respondents, do not have
any Cybersecurity skill solution or any insurance to face identified top risks. Talent
risk is the most under-covered risk, where 41% of respondents do not have any
solution or insurance
Identifying the Risk: The art of Horizon scanning and Emerging risks identification
are found wanting short- and medium-term risk rankings are very similar – and
similar risks also appear in emerging risks. Horizon scanning and emerging risk
identification needs to improve emotional Quotient of Top Management is the only
key emerging risk identified
New risk identified – The climate wake-up call: Profound urgency of Climate
Change continues to be undervalued. Only Energy and Utilities, Hospitality,
Infrastructure and Real Estate and FMCG sectors identified Climate Change and
Natural Disasters as the top risk.
Insights that hit home
Risk Management 101: Nearly half of businesses (45%) rank at level 3:
Progressing. It’s time to move the needle towards transformation.
Global Influence: Overseas subsidiaries bring in sophistication. Around 25% of
these organizations are already at the top – Maturity Level 4, Transforming.
Shift in Attitude: More than 45% organisations play it safe, thinking risks are just to
be avoided or managed. They do not feel that risks can be positive or risk
management capability can be a competitive advantage
Skills in Demand
Cyber Crusaders: Cybersecurity is a hot skill everyone is after. This is the top area
where organizations are scouting for skills. Several IRM-qualified professionals who
are ERM experts (that covers cyber risks) are building digital resilience across
sectors
Insurance IQ: Insurance management practices lack maturity, as about 40% of
respondents do not measure any component of Cost of Insuring Risks. Their solution
design including cost management need to improve.
This report is a testament to our commitment to fostering the growth of India Inc. It delves deep into the multifaceted risks that our industries face and the transformative potential of a strong risk culture.