Regulatory compliance, operational concerns and geopolitical uncertainty are the main risk areas for corporate India, according to research by ICICI Lombard General Insurance.
"While the key risk areas perceived by India Inc include regulatory compliance (53%) and operational concerns (50%), 27% of the respondents believe geopolitical uncertainty to be a risk factor," said the study, adding that 23% claim uncertain economic growth can lead to increasing risks.
The research was conducted through online interviews with 130 C-suite risk officers to identify the risk practices adopted by Indian organisations, the insurer says.
"Interestingly, only 23% of respondents perceived information insecurity as a key risk, while 11% believe technological disruption was a risk area," it said, adding that this could be because of the limited risk exposures that companies would have experienced directly.
The report states that 88% of organisations claimed that supporting strategic business decisions has been one of the key drivers for Enterprise Risk Management implementation.
It also states that 73% of organisations have been equipped with a risk governance framework for more than three years, whereas 20% have incorporated a risk governance mechanism in the last three years and only 7% have introduced the same in the last year.
"With the emerging global uncertainties coupled with technological disruption, it is the need of the hour for organisations to equip themselves with a well-defined enterprise risk management framework," said Mr Bhargav Dasgupta, MD and CEO of ICICI Lombard General Insurance.