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Indian firms exposed to critical risks but few quantify them
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Indian companies are confronting a rapidly evolving risk environment dominated by cyber threats, regulatory pressure, economic volatility and workforce challenges, yet only a small fraction are using data and analytics to measure their exposures or evaluate whether their insurance programmes are delivering value, a survey by professional consultancy firm Aon has found.
The 2025 Global Risk Management Survey, released on Wednesday, is based on responses from 2,941 decision-makers across 63 countries.
It reveals that just 14% of Indian respondents quantify their exposure to their top 10 risks. Only 19% use analytics to assess the value of their insurance programmes, underscoring a striking gap between risk awareness and action.
“In a world where disruption is the new normal, Indian businesses must invest in adaptive risk management—prioritising digital and climate resilience, scenario planning and ongoing employee training,” said Sushant Sarin, managing director for India at Aon. “Leveraging data-driven insights and benchmarking against industry peers will be key [to] building resilience and sustaining competitive advantage.”
Cyber attacks and data breaches remain the top-ranked risk for India in 2025, mirroring global sentiment, followed by economic slowdown, business interruption and data privacy non-compliance, which has climbed sharply amid tightening local and global regulatory scrutiny.
Talent pressures continue to weigh heavily. Failure to attract or retain top talent ranks fifth, a persistent concern in a labour market undergoing rapid digital transformation. Other risks, more acute in India than in the rest of the world, include property damage and exchange rate fluctuation, both of which have translated into significant financial losses.
The India findings reflect a landscape where technology, compliance and talent pressures are reshaping corporate priorities. “Indian businesses are demonstrating remarkable agility in the face of digital disruption, talent adaptability and geopolitical shifts,” said Rishi Mehra, chief executive of India, Aon. “As cyber attacks and data privacy risks continue to rise, both in frequency and impact, organisations must not only strengthen their resilience but adapt quickly to these accelerated challenges.”
The survey shows Indian firms have already absorbed material losses from multiple fronts—77.8% of respondents reported losses from property damage, 46.2% from business interruption and 63.6% from exchange rate volatility.
Nearly half reported loss impacts arising from talent challenges and cash flow or liquidity pressures, highlighting the interconnected nature of financial, people and operational risks.
In response, India Inc is formalising risk governance at a faster pace—70% of surveyed Indian organisations have established dedicated risk management and insurance departments, while 64.9% measure their total cost of insurable risk, most of whom report rising costs.
Mitigation measures are widespread. According to the survey, 92.9% of the respondents have cyber attack response plans, 90.9% have formal property damage mitigation protocols, 64.7% address data privacy compliance and 55% have initiatives focused on talent retention. A striking 91.9% of Indian organisations are now using captive insurance solutions, signalling a shift towards alternative risk financing to manage volatility and enhance liquidity.
Looking ahead to 2028, Indian businesses expect the risk landscape to intensify under the combined force of technology disruption and climate volatility.
Cyber threats are projected to remain the top risk, but AI emerges as the second most critical future risk, reflecting both its potential and the uncertainties it introduces across security, operations and governance.
Economic slowdown, business interruption and climate change round out India’s top five future risks, with climate impacts set to cascade through supply chains, infrastructure resilience and regulatory obligations.
