Cybersecurity breaches emerge as top risk for Indian companies: Survey

The report, which draws on inputs from senior decision-makers across various sectors, highlights that technology risk is now tightly linked to operational continuity.

Bengaluru: Growing pressure across technology, governance and workforce are increasingly influencing organisational priorities as per the FICCI-EY Risk Survey 2026 ‘Risk outlook - A compass to India’s risk landscape’. The report draws on inputs from senior leaders across sectors, on factors affecting pricing, supply chains, talent strategies and technology investments, making risk management central to business strategy.

Cybersecurity breaches and attacks are identified as the top risk shaping organisational performance, cited by 51% of respondents. This is followed closely by changing customer demands and expectations at 49%, while 48% point to geopolitical events as a key risk factor.

Technology risk is now tightly linked to operational continuity. The survey shows that 61% of respondents feel that rapid technological change and digital disruption are affecting their competitive position, while an equal proportion (61%) identify cyber-attacks and data breaches as major financial and reputational threats. More than half, 57%, report potential data theft and insider fraud as significant risks, and 47% acknowledge difficulty in addressing increasingly sophisticated cyber threats.

Artificial intelligence is emerging as a dual risk area, where both under-adoption and weak governance are sources of concern. The survey indicates that 60% of respondents believe inadequate adoption of emerging technologies, including AI, can adversely impact operational effectiveness. At the same time, 54% feel AI-related risks, including ethical and governance issues, are not being effectively managed.

Nearly 45% of respondents cite financial impact due to climate change as a critical risk to their operations in India. 44% believe non-compliance with ESG disclosure mandates and reporting requirements may have a significant impact. Additionally, 42% executives expressed concerns around effectiveness of board oversight on ESG-related issues.

Sudhakar Rajendran, Risk Consulting Leader, EY India said, organisations are navigating a phase where multiple risks are converging rather than occurring in isolation.

"Inflation, cyber threats, AI governance, climate exposure and regulatory change are interacting in ways that directly influence India Inc’s performance and resilience. Boards are being pushed to strengthen oversight, improve data quality and integrate resilience into core strategy. The survey shows that leaders who increasingly recognise risk management as a strategic capability, shall be poised for long-term competitiveness,” he said.