Despite robust economic growth projections of 7.4 per cent, Indian businesses face heightened vulnerabilities from cyber threats, geopolitical tensions, and climate change, prompting a rethink of risk strategies and governance amid a complex, interconnected threat landscape.
India’s corporate sector faces a complex risk environment even as forecasters expect robust expansion next year, according to the FICCI‑EY Risk Survey 2026. The study projects gross domestic pro...
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duct growth of 7.4 per cent, yet finds widespread anxiety among business leaders about the durability of that upswing and the hazards that could undermine it.
According to the report by EY and the Federation of Indian Chambers of Commerce & Industry, 68 per cent of respondents see domestic market disruption as a major concern. Cyber threats loom largest: 51 per cent of senior executives rank cybersecurity breaches as the single biggest risk to organisational performance, while 61 per cent identify cyber‑attacks and data theft as significant financial and reputational dangers. Industry coverage by The Economic Times, The Times of India and Business Standard confirms those findings and highlights increasing worries about insider fraud and the growing sophistication of attacks.
Geopolitical tensions and shifting customer preferences also figure prominently. Nearly two‑thirds of respondents flagged geopolitical risk, and roughly half cited changing consumer demands as a material threat to business results, according to reporting by Zeebiz, The Economic Times and other outlets. The survey also notes that supply‑chain interruptions worry 54 per cent of firms and that 45 per cent regard climate change as a critical financial exposure, underscoring how risks are now intertwined across domains.
Technology sits at the centre of many respondents’ concerns. Some 61 per cent of leaders say rapid digital change is eroding their competitive position, and 60 per cent worry that slow adoption of artificial intelligence will blunt operational effectiveness. More than half of participants believe AI‑related challenges, ethical dilemmas, governance and regulatory gaps, are not being managed adequately; EY’s own publication stresses this shortfall. Coverage in The Financial Express and Business Standard also emphasises rising regulatory and governance pressures, including evolving data protection rules and sector‑specific compliance demands.
Executives and advisory leaders featured in the survey argue that a shift from episodic to embedded risk management is necessary. Rajeev Sharma, Chair of the 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, governance structures and long-term planning.” His comments, included in the report and cited by Zeebiz, frame resilience as a strategic priority rather than an operational afterthought.
EY’s Risk Consulting Leader for India, Sudhakar Rajendran, similarly urged integrated responses to overlapping threats. He 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.” That observation, relayed in EY’s report and summarised across press accounts, reflects the survey’s central theme that contagion between risk categories heightens overall vulnerability.
Talent shortages compound the technical and geopolitical pressures: 64 per cent of respondents reported difficulties securing the skills needed to respond to these challenges, according to Zeebiz and corroborating coverage. That shortfall, together with fast‑moving digital shifts and tightening regulation, is prompting many companies to prioritise supply‑chain resilience, cyber defences and governance frameworks as immediate investments.
While the FICCI‑EY survey projects solid economic momentum, it paints a cautionary picture: growth may be achievable, but only if corporations strengthen defences against an array of converging threats and align governance, technology adoption and workforce planning to a risk landscape in flux.
Source: Noah Wire Services
