New Delhi, Feb 9 (.) Cybersecurity breaches and attacks have emerged as the single biggest risk shaping organizational performance in India, according to the FICCI-EY Risk Survey 2026: Risk Outlook – A Compass to India’s Risk Landscape.
The survey, which draws insights from senior leaders across sectors, highlights how growing pressures across technology, governance and workforce issues are reshaping business priorities and placing risk management at the core of strategy.
As many as 51% of respondents identified cybersecurity threats as the top risk, underscoring rising concerns around data protection, operational continuity and reputational damage.
This was closely followed by changing customer demands and expectations, cited by 49% of respondents, while 48% pointed to geopolitical events as a key factor influencing business performance.
The survey reveals that technology risk is now deeply intertwined with business continuity. Around 61% of respondents said rapid technological change and digital disruption are impacting their competitive position, while an equal proportion flagged cyber-attacks and data breaches as major financial and reputational threats. More than half of the respondents (57%) reported risks related to potential data theft and insider fraud, and 47% acknowledged difficulties in addressing increasingly sophisticated cyber threats.
Artificial intelligence has emerged as a dual-edged risk. While 60% of respondents believe inadequate adoption of emerging technologies, including AI, could negatively affect operational effectiveness, 54% expressed concern that AI-related risks such as ethical challenges and weak governance are not being effectively managed.
Climate change and ESG-related risks are also gaining prominence. Nearly 45% of respondents cited financial impacts due to climate change as a critical risk to their operations in India.
Additionally, 44% believe non-compliance with ESG disclosure mandates could have significant consequences, while 42% raised concerns about the effectiveness of board oversight on ESG issues.
Operational resilience remains under pressure as companies face a wider and faster-evolving risk landscape.
Supply chain disruptions were identified as a concern by 54% of respondents, while 56% flagged physical events and 52% cited ineffective real-time crisis management as major threats to business continuity.
Talent and culture risks are undergoing a significant reset. The survey shows that 64% of respondents believe talent shortages and critical skill gaps could affect organizational performance. Weak succession planning was cited by 59% as a risk to stability, while 41% highlighted ambiguity around remote and hybrid working models as a challenge to corporate culture.
On the regulatory front, 67% of respondents agreed that regulatory changes require urgent attention.
However, 40% said their compliance frameworks struggle to keep pace with evolving regulations, and 39% pointed to gaps in technology, budget or resources as constraints in managing compliance demands.
Overall, the survey underscores that Indian organizations are grappling with an increasingly complex risk environment, where technology, talent, climate and regulation intersect, making integrated and proactive risk management more critical than ever.
. VK SAS ARN