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Indian Firms improve on Risk Management despite Global Turmoil

BusinessIndian Firms improve on Risk Management despite Global Turmoil

NEW DELHI: Indian corporates have navigated past global headwinds and increased risk exposure in certain sectors, demonstrating robust risk management and strategic advancements leading to improved risk management scores, according to the fourth edition of the ICICI Lombard Corporate India Risk Index (CIRI) 2023, a proprietary study conducted by ICICI Lombard in collaboration with Frost and Sullivan. Government initiatives such as “Make in India,” continued investments in infrastructure, and the promotion of sustainable energy management have played a pivotal role in bolstering sector resilience. The ongoing digital transformation and AI integration across sectors have further enhanced operational efficiencies and risk management practices.

The CIRI 2023 comprises 32 risk elements across six broad dimensions, drawing upon global risk management best practices. The unique scale identifies optimal management of the risks companies are individually exposed to, enabling them to adopt effective practices, without over-investing. The fourth edition shows an improvement in the risk index score from 63 in 2022 to 64 in 2023. The improved score in the fourth edition of the Corporate Risk Index testifies to the efficient risk management practices adopted by Indian corporates in the face of global headwinds and challenges.

“As we move forward, companies must stay ahead of the curve and adopt comprehensive and efficient risk management practices and ICICI Lombard helps clients manage risk with bespoke services like property and engineering loss prevention, comprehensive risk assessments and cyber security solutions. These services provide a holistic view of the risk, enabling clients to enhance operational resilience for long-term stability and growth,
observes Sandeep Goradia, Chief – Corporate Solutions Group at ICICI Lombard.

The 2023 Risk Index shows all 20 sectors in ‘superior’ or ‘optimal risk handling,’ with nine sectors demonstrating ‘superior’ handling, including telecom & communication, pharmaceuticals, healthcare delivery, automotive & ancillary, manufacturing, fmcg, media & gaming, new age & start-up, and tourism & hospitality. the bfsi sector showed significant improvements in cybersecurity measures but remained susceptible to global economic volatility.

The manufacturing, metals and mining, and new age sectors displayed notable advancements in their risk index scores. However, the FMCG and biotech and lifesciences sectors faced challenges due to dynamic consumer demands and geopolitical events,

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