Cybersecurity breaches top risk for India Inc, 51% leaders flag threat to business performance: FICCI-EY survey

Cybersecurity breaches and attacks have emerged as the biggest risk to organisational performance for Indian companies, with 51 per cent of senior leaders identifying it as their primary concern, according to the FICCI-EY Risk Survey 2026 released on Sunday.The survey ranked changing customer demands (49 per cent) and geopolitical developments (48 per cent) as the next most significant risks facing businesses, PTI reported.The report, based on responses from senior decision-makers across sectors, highlighted that technology-related risks are increasingly linked to operational continuity and business resilience.According to the findings, 61 per cent of respondents said rapid technological change and digital disruption are affecting their competitive position. An equal proportion, 61 per cent, identified cyber-attacks and data breaches as major financial and reputational threats.“More than half, 57 per cent, report potential data theft and insider fraud as significant risks, and 47 per cent acknowledge difficulty in addressing increasingly sophisticated cyber threats,” the report stated.The study was based on a web-based survey of 137 senior decision-makers, including CXOs. The technology sector accounted for the highest share of respondents at 21 per cent, followed by professional services.Artificial Intelligence (AI) has emerged as a dual risk area for India Inc, reflecting both opportunity and exposure.While 60 per cent of respondents said inadequate adoption of emerging technologies, including AI, could negatively impact operational effectiveness, 54 per cent said AI-related risks such as ethical and governance challenges are not being managed effectively.Commenting on the findings, Rajeev Sharma, Chair, FICCI Committee on Corporate Security & DRR, said, “In a business environment shaped by volatility, the ability to anticipate, absorb and adapt to risk is emerging as a defining capability for sustained growth. The report indicates that organisations are moving away from treating risk as episodic and are instead embedding it into strategic decision-making”.The survey also flagged concerns related to workforce and talent management.About 64 per cent of respondents said talent shortages and skill gaps could affect organisational performance, while 59 per cent cited weak succession planning as a potential risk to business stability.On the regulatory front, 67 per cent of respondents said regulatory changes need to be addressed proactively, while 40 per cent said their compliance frameworks struggle to keep pace with regulatory shifts.Climate and ESG risks are also translating into financial exposure for companies.Nearly 45 per cent of respondents cited financial impact due to climate change as a critical operational risk in India, while 44 per cent said non-compliance with ESG disclosure mandates could have a significant business impact.“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,” said Sudhakar Rajendran, Risk Consulting Leader, EY India.The survey also showed that supply chain disruptions remain a major concern, with 54 per cent of executives flagging it as a risk to operational and business continuity.