51% of India Inc rank cybersecurity breaches as the top risk to organizational performance: FICCI-EY Risk Survey

• Changing customer demand and expectation at 49% and geopolitical events at 48% are the next top two ranking risks.
• 60% believe inadequate adoption of emerging technologies, including AI, can adversely impact operational effectiveness.
• 54% view supply chain disruptions as a concern when it comes to operational and business continuity.

New Delhi, 08 February 2026: Growing pressure across technology, governance and workforce are increasingly influencing organizational priorities as per the FICCI-EY Risk Survey 2026 ‘Risk outlook - A compass to India’s risk landscape’. The report draws on inputs from senior leaders across sectors, on factors affecting pricing, supply chains, talent strategies and technology investments, making risk management central to business strategy.

Cybersecurity breaches and attacks are identified as the top risk shaping organizational performance, cited by 51% of respondents. This is followed closely by changing customer demands and expectations at 49%, while 48% point to geopolitical events as a key risk factor.

Technology, cyber and AI risk key concerns

Technology risk is now tightly linked to operational continuity. The survey shows that 61% of respondents feel that rapid technological change and digital disruption are affecting their competitive position, while an equal proportion (61%) identify 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.

Artificial intelligence is emerging as a dual risk area, where both under-adoption and weak governance are sources of concern. The survey indicates that 60% of respondents believe inadequate adoption of emerging technologies, including AI, can adversely impact operational effectiveness. At the same time, 54% feel AI-related risks, including ethical and governance issues, are not being effectively managed.

Commenting on the report, Mr. Rajeev Sharma, Chair, FICCI Committee on Corporate Security & DRR and Cluster Managing Director, India, Nepal & Bangladesh, G4S Corporate Services (India) Pvt. Ltd 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 organizations are moving away from treating risk as episodic and are instead embedding it into strategic decision-making, governance structures and long-term planning.”

Sudhakar Rajendran, Risk Consulting Leader, EY India said, “Organizations 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. Boards are being pushed to strengthen oversight, improve data quality and integrate resilience into core strategy. The survey shows that leaders who increasingly recognize risk management as a strategic capability, shall be poised for long-term competitiveness.”

Climate and ESG risks translate into financial exposure

Nearly 45% of respondents cite financial impact due to climate change as a critical risk to their operations in India. 44% believe non-compliance with ESG disclosure mandates and reporting requirements may have a significant impact. Additionally, 42% executives expressed concerns around effectiveness of board oversight on ESG-related issues. 

Operations and supply chain risks

Companies now face a broader and faster-changing mix of risks — from physical events and supply chain disruptions which can halt operations without warning. 54% view supply chain disruptions as a concern when it comes to operational and business continuity. 56% flagged physical events and 52% cited ‘ineffective real time crisis management’ as the two other major concerns.

Talent and culture risks

Talent and culture dynamics are undergoing a profound reset. The survey shows that 64% of respondents believe talent shortages and critical skill gaps might affect organizational performance. 59% cite weak succession planning as a risk to organizational stability. 41% note ambiguity around remote/hybrid working poses significant risks to corporate culture.

Regulatory, compliance risks

The survey shows that 67% of respondents agree or strongly agree regulatory changes need to be addressed. 40% indicate that their compliance frameworks struggle to keep pace with regulatory shifts. Lastly, 39% note that gaps in technology, budget or resources limit their ability to manage compliance demands. 

About the FICCI–EY Risk Navigator Survey

The survey was conducted as a structured, web-based research exercise designed to capture perspectives on emerging risks and organizational readiness. Responses were gathered from senior decision-makers across leadership, risk, finance, and operational roles, representing a broad mix of industries and organizational sizes. Participants shared insights on their risk priorities, preparedness, governance practices, and business decision-making. The survey covered a wide range of risk themes, including strategic, operational, regulatory, technology, and people-related risks. Responses were compiled and analysed centrally to ensure consistency and comparability. Findings reflect aggregated perceptions and experiences, providing directional insights into the evolving risk landscape rather than precise measurements.

About EY

EY is building a better working world by creating new value for clients, people, society and the planet, while building trust in capital markets. Enabled by data, AI and advanced technology, EY teams help clients shape the future with confidence and develop answers for the most pressing issues of today and tomorrow. EY teams work across a full spectrum of services in assurance, consulting, tax, strategy and transactions. Fuelled by sector insights, a globally connected, multi-disciplinary network and diverse ecosystem partners, EY teams can provide services in more than 150 countries and territories.
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About FICCI

Established in 1927, FICCI is the largest and oldest apex business organisation in India. Its history is closely interwoven with India's struggle for independence, its industrialization, and its emergence as one of the most rapidly growing global economies.

A non-government, not-for-profit organisation, FICCI is the voice of India's business and industry.

From influencing policy to encouraging debate, engaging with policy makers and civil society, FICCI articulates the views and concerns of industry. It serves its members from the Indian private and public corporate sectors and multinational companies, drawing its strength from diverse regional chambers of commerce and industry across states, reaching out to over 2,50,000 companies.

FICCI provides a platform for networking and consensus building within and across sectors and is the first port of call for Indian industry, policy makers and the international business community.