Cyber Risk Rises to the Top of India Inc Worry List
Executives warn digital attacks, AI governance gaps and regulatory churn are converging to test resilience.
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[Image creative: Chetan Jha/MITSMR India]
Cybersecurity breaches and attacks have become the biggest risk shaping organizational performance for Indian companies, with 51% of senior leaders ranking it as their top concern, according to the FICCI–EY Risk Survey 2026.
Changing customer demands and expectations followed at 49%, and geopolitical events at 48%, the survey found.
The findings come ahead of a period of heightened uncertainty for businesses as technology, geopolitics and compliance pressures collide.
In the survey, 61% of respondents said rapid technological advancement and digital disruption significantly affect their competitive position, and 61% said cyber-attacks and data breaches pose major financial and reputational risks.
“More than half, 57%, report potential data theft and insider fraud as significant risks, and 47% acknowledge difficulty in addressing increasingly sophisticated cyber threats,” the report said.
Executives also flagged a widening governance gap around artificial intelligence.
About 60% of respondents said inadequate adoption of emerging technologies, including AI, could hurt operational effectiveness, while more than 54% said AI risks, including ethical concerns, are not being managed effectively within their organizations.
Beyond technology, workforce and compliance issues remain persistent. 64% of respondents cited talent shortages and skill gaps as a risk to performance, and 59% pointed to weak succession planning.
Regulatory risk is intensifying, with 67% saying frequent and complex regulatory changes must be addressed, and 40% saying their compliance frameworks struggle to keep pace with regulatory shifts.
“Organizations are navigating a phase where multiple risks are converging rather than occurring in isolation,” said Sudhakar Rajendran, risk consulting leader at EY India. “Inflation, cyber threats, AI governance, climate exposure and regulatory change are interacting in ways that directly influence India Inc.’s performance and resilience.”
Climate and ESG risks are also increasingly financial. The survey found 45% of respondents agreed that non-compliance with ESG disclosure requirements affects their organizations, while 44% said climate-related financial impacts pose risks.
“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,” Rajeev Sharma, chair of FICCI’s Committee on Corporate Security and Disaster Risk Reduction, said in the report.
