Corporate India finds the rapidly changing technology advancements, geopolitical conflicts and legal challenges as the major emerging risk for business in coming days.
Corporates are forced to rethink their risk mitigation and business continuity strategies.
As per the Tata AIG General Insurance Company and Dun & Bradstreet India’s Horizon Watch Emerging Risk Report about 83 per cent of businesses cited technological advancements as the leading driver of new risks, followed by 69 per cent expressing concerns over legal challenges and 67 per cent for growing regulatory pressures related to data privacy and environmental risks.
Meanwhile, 63 per cent expect international conflicts to severely impact their operations, said the report which analysed the emerging risks that Indian businesses will face over the next five years.
The report was based on a detailed survey conducted among 300 business leaders across 25 sectors.
Tightening noose around biz
As regulatory landscapes grow increasingly complex, organisations are becoming more concerned about the potential impact of legal disputes on their operations and long-term strategies.
Additionally, environmental regulations and compliance changes are emerging concerns as businesses struggle to navigate increasingly stringent requirements.
About 63 per cent of respondents ranked logistics and transportation disruptions as a top concern.
About 48 per cent of businesses expressed concern over financial instability due to economic downturns, rising interest rates and inflation, prompting companies to focus more on liquidity and risk-management strategies.
Sushant Sarin, President – Commercial Business, TATA AIG General Insurance said in today’s rapidly evolving global landscape, managing emerging risks is crucial for sustainability and growth of any organisation.
The report provides a comprehensive framework to help businesses identify and address risks, fostering resilience and enabling long-term growth, he added.
Avinash Gupta, Managing Director, Dun & Bradstreet India said by identifying emerging risks and their implications, businesses can navigate uncertainty with confidence, ensuring resilience in a world where adaptability is key to survival.