“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
New Delhi: Cybersecurity breaches and attacks have emerged as the top risks for Indian companies’ organisational performance, with 51 per cent 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 per cent) and geopolitical events (48 per cent) 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 per cent of respondents feel that rapid technological change and digital disruption are affecting their competitive position. An equal proportion (61 per cent) identified cyber-attacks and data breaches as major financial and reputational threats.
“More than half, 57 per cent, report potential data theft and insider fraud as significant risks, and 47 per cent acknowledge difficulty in addressing increasingly sophisticated cyber threats,” the report stated.
“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.
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 per cent, followed by professional services.
Artificial Intelligence (AI) has emerged as a dual risk area for India Inc.
While 60 per cent of respondents believe inadequate adoption of emerging technologies, including AI, can adversely impact operational effectiveness, 54 per cent 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 & 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 per cent of respondents believe talent shortages and critical skill gaps might affect organisational performance, while 59 per cent cited weak succession planning as a risk to stability.
On the regulatory front, 67 per cent of respondents agreed that regulatory changes need to be addressed, with 40 per cent 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 per cent of respondents cited financial impact due to climate change as a critical risk to their operations in India, while 44 per cent believe non-compliance with ESG disclosure mandates could have a significant impact.
Supply chain disruptions remain a worry for 54 per cent of executives when it comes to operational and business continuity, according to the survey.