For the second year running, large scale cyber-attacks have emerged as the top risk for corporations across India, according to a joint study conducted by Marsh, the world’s leading insurance broker and risk adviser, and RIMS, the risk management society®.
According to the report, Excellence in Risk Management – State of Risk Management in India 2019, around 62% of the 179 survey respondents – including c-suite executives and senior risk professionals across 23 industries – identified cyber attacks as the top risk facing their organizations. Extreme weather events (17%), data fraud or theft (10%), and fiscal crises (9%) were highlighted among the other top risks for Indian businesses.
This year’s Excellence in Risk Management report also examines the maturity of the risk management function across the country’s leading organizations. Survey findings show that while firms have been slow to change their cybersecurity strategies and make further investments, an increasing number recognize the importance of implementing a comprehensive risk management framework and the potential for good risk management to be a competitive advantage.
More than 68% of the respondents listed integrating risk management into strategic planning as the top investment priority when it comes to strengthening the risk management function in 2020. Another 15% ranked upgrading risk management technology as a key investment goal. However, approximately 11% of respondents indicated that building risk management capabilities is not a significant investment focus for their organization.
“India, like other countries, has been susceptible to malicious cyber attacks and there is growing awareness among corporates of the need to ensure they have appropriate cybersecurity controls,” said Sanjay Kedia, Country Head and CEO, Marsh India. “Firms need to keep up with the evolution of cyber threats if they are to capitalise on technology-based opportunities. This will require organizations to make additional investment to ensure they have adequate protection.
“Quantifying cyber risk can help organisations make better informed capital allocation decisions, enable better performance measurement, and put cyber risk in the same economic terms as other enterprise risks.”
The report, which was launched at RIMS’ Risk Forum 2019 India, aims to equip established and aspiring risk management professionals in the country with key insights on India’s rapidly evolving corporate risk landscape. Marsh and RIMS have a long history of collaborating to advance knowledge and best practices in risk management. The Excellence in Risk Management series is published annually in several countries across the globe.
“Global business leaders who have ingrained risk management into the fabric of the organization’s strategic planning processes have become better equipped to make informed, proactive, and rewarding decisions,” said RIMS CEO Mary Roth. “India’s risk management community continues to demonstrate its strength, as well as its passion for developing advanced capabilities that support growth and innovation. We are proud to work with Marsh on this important report, to gain insight from professionals in the region, and deliver valuable resources that support their future endeavours.”