As India progresses toward becoming a developed nation under the Viksit Bharat 2047 program, it maintains rapid economic growth. This progress, amid a complex risk environment, presents both opportunities and challenges for Indian industries. A strong risk culture will enable an organisation to confidently pursue its objectives by taking calculated risks and effectively managing potential threats and hazards.
India Risk Report 2024 by ICICI Lombard and IRM India highlights the crucial need for embedding a risk culture into organizational strategies. The report emphasises a simple A-B-C approach for understanding the “Risk Culture” of an organization. Attitudes of individuals and groups shape their Behaviours. Over time, these repeated behaviours form the Culture, which in turn influences the attitudes and behaviours within the organisation.
This report is a timely reminder of the importance of proactive risk management. It assesses the self-evaluation of processes and cultural standing within Indian enterprises, based on a comprehensive survey of risk perceptions, management practices, and cultural aspects. It equips businesses with actionable insights to navigate the complex risk landscape and unlock opportunities for sustainable growth.
The comprehensive study, combining primary and secondary research, incorporates valuable insights from business and risk leaders across various fields. This report aims to enhance our collective understanding and management of risks while promoting a resilient organizational culture grounded in effective risk practices. It examines risk disclosures from over 500 Indian companies and more than 50 global companies, based on their annual reports for years 2022 and 2023. The quantity and quality of these disclosures provide insights into the prevailing risk culture within these organizations.
Sandeep Goradia, Chief – Corporate Solutions Business at ICICI Lombard, states “Risk perception across industries is evolving at an unprecedented pace. Sectors that were once considered risk-averse are now confronting new and complex challenges, driven by the increasingly dynamic and interconnected nature of the global risk landscape. The rise of cybersecurity threats, coupled with talent shortages and economic uncertainties, has transformed risk management from a strategic consideration to an operational imperative. In today’s environment, organizations must adopt a forward-thinking approach to anticipate and navigate these emerging threats. Insurance plays a pivotal role in this framework, offering both financial protection and a strategic buffer against unforeseen disruptions. Our collaboration with IRM enables us to deliver in-depth insights and actionable strategies that not only address immediate risks but also foster long-term resilience. By integrating risk management into the core of their operations, businesses can not only safeguard their future but also capitalize on opportunities that arise even in volatile conditions.”Hersh Shah, CEO, IRM India Affiliate and India’s Youngest Enterprise Risk Expert, said “As India charts its course towards becoming a developed nation under the Viksit Bharat 2047 initiative, it finds itself at the intersection of immense opportunities and intricate challenges. The dynamic landscape of business and risk demands a new level of agility and foresight. It is within this context that we present the second edition of our report, “Building Resilience: A Comprehensive Analysis of Risk Culture in India’s Corporate Sector,” with ICICI Lombard. The second edition delves deeper into the essence of risk culture, a crucial yet often overlooked facet of organisational health. Our commitment to understanding and enhancing risk culture stems from its profound impact on an organisation’s ability to prepare for evolving scenarios, navigate uncertainties, and leverage opportunities effectively.”
While solid risk management processes and advanced technology are essential for risk management, a strong risk culture is also critical. This culture must empower everyone in the company to recognize, identify, and manage risks.
The self-assessment of risk culture, combined with the risk disclosure analysis, highlights the urgent need to enhance risk culture within organizations. This research will benefit industry risk leaders and all Indian enterprise stakeholders. It will help them identify the key areas that require attention to become risk-intelligent and risk-ready, enabling them to confidently pursue ambitious goals.