FICCI-Pinkerton 'India Risk Survey' identifies Natural Hazards, Cyber Insecurity and IP theft as top three risks for businesses

Mar 04, 2022

NEW DELHI, 04 March 2022: Mr Krishna S. Vatsa, Member, NDMA today highlighted that risk needs to be understood in all its complexity. "We cannot really implement mitigation unless we have risk assessment at the micro level," he added.

Addressing the webinar on 'New Age Risks', organized by FICCI, Mr Vatsa urged that there is a need for a much robust database for the hazard events and invited FICCI to collaborate on this important aspect. "The database is extremely important for understanding the pattern of hazards & the magnitude of impact," he noted.

Mr Vatsa appealed to the industry to not only focus on risk assessment but also look at the investments in area of risk recovery. "It is important to understand how risk transmit from one end to another end.  If India has to become a 5 trillion-dollar economy, it cannot do so without having an effective risk management strategy," he emphasized.

Mr Rohit Karnatak, Mg Director, Pinkerton India said, "The nature of risks globally has changed enormously, and with their occurrences becoming more unexpected and their effects becoming more profound, risks need to be taken more seriously. In these changing times it is critical to understand emerging risks. The FICCI- Pinkerton India Risk Survey (IRS) recognize the emerging risks for the developing economies like India, during the phase of new normal. This IRS Report has been releasing annual risk ranking as perceived by corporates in India from last ten years. The survey report uses the Pinkerton Risk Wheel framework to understand and assess each risk individually and looks at risk from a holistic perspective for analyses."

Mr Rahul Chaudhry, Mentor, FICCI Committee on Homeland Security, said, "Timely communication is one of the most critical risk management strategies. Risks related to cyber space have increased many folds in past few years. We have been adopting and practicing a defensive strategy so far against cyber war, but we really need to work on the cyber mitigation and recovery strategy, not only for corporates but also for all the organisations across the country."

"FICCI and NDMA have a lot of common grounds to work, especially towards institutionalization of disaster related risk assessment, mitigation and management by combining government initiatives and vision with best practices & expertise of corporates. It will be our pleasure to work with NDMA under the guidance and leadership, of Mr Vatsa," added Mr Chaudhry.

The program witnessed panel discussions on Emerging risks from pandemic - Long term impact on business Continuity, and COVID-led disruptions - Opportunities for new business models. The experts addressed various risks that emerged during COVID and their possible mitigation. The discussion also focussed on the opportunities created due to such disruption and how businesses could leverage the same.

FICCI-Pinkerton report 'India Risk Survey', was released during the event which captures the risks as perceived by corporates and sensitises all stakeholders about the emerging risks so that well-planned and strategic policy decisions can be made.

Key highlights of FICCI-Pinkerton report 'India Risk Survey':

 Overall risk trend - 2021

"Natural Hazards" remains the top concern for businesses across all the regions in India" - India Risk Survey India Risk Survey 2021 has ranked "Natural Hazards," "Information & Cyber Insecurity," and "Intellectual Property Theft" as the top three risks for businesses in India. NATURAL HAZARDS climbs to the top spot in the 2021 survey following the global pandemic and rise in climate-related natural disasters in 2020-21 and remains the top disruptive concern for business in the post-pandemic era. INFORMATION & CYBER INSECURITY climbs to the second spot as India Inc has rapidly adopted digitalization and remote working models after the global pandemic and subsequent lockdowns. INTELLECTUAL PROPERTY THEFT is voted as the third most serious concern by respondents given the increased threat of hackers, copyright pirates, brand impersonators, patent flouters, and trade secret thieves to businesses. As digitalization has paved the way for tech-based start-ups, software and data piracy as a form of IP theft is also a major concern for Indian companies. FIRE is voted as the fourth disruptive risk by respondents of the 2021 survey. There were 9,329 reported cases of fire accidents with over 9,000 casualties in India in the year 2020, making this a serious cause of concern for companies. POLITICAL & GOVERNANCE INSTABILITY appears in the fifth spot due to concerns over policy changes affecting certain areas of the business ecosystem.

 

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• Natural hazards, cyber insecurity, IP theft top risks for businesses
• FICCI - Pinkerton ‘India Risk Survey’ identifies Natural Hazards, Cyber Insecurity and IP theft as top three risks for businesses

Event

• Webinar on New Age Risks