Marsh, a global leader in insurance broking, and RIMS, the risk management society, collaborated on a study which revealed that large-scale cyber-attacks and extreme weather are the top risks for India Inc. In the study conducted across 19 industries, risk professionals, C-suites executives and others identified cyber-attacks as the topmost risk at 88%, data fraud or theft at 85%, volatile weather at 84%, severe energy price shock at 81% and major financial failure at 81%.
Titled ‘Marsh RIMS – State of Risk Management in India’, the report sheds light on the maturity of risk management functions in corporate India. It addresses areas such as the top risks Indian corporates face, the maturity level of risk management in organisations, the key areas of risk management that require improvement, the risks of adopting emerging technologies, and key recommendations for risk executives.
‘Excellence in Risk Management’ series is published by Marsh annually in several geographies. This report on Indian scenario was launched at the recent RIMS’ first risk management forum in India.
A little over a third (37%) respondents believed cyber-attacks are highly prevalent now due to India’s growing dependency on data and digitisation efforts. In May 2018, the Indian Computer Emergency Response Team (CERT-In) found that over 22,000 Indian websites, including 114 government portals, were hacked between April 2017 and January 2018.
Shedding light on the maturity of risk management functions in corporate India, this elaborate survey observed three separate time frames to assess the said risks; an already significant concern; will be a significant concern in one to three years; and a significant concern after three years.
A few other identified risks that are foreseen are financial crises in key economies, which stands at 80%, water crises and shortfall of critical infrastructure at 76%, and failure of urban planning and failure of national governance at 72%.