Cyberattack is top concern for businesses in India: Aon Survey

Businesses have identified cyberattack/data breach, business interruptions and failure to attract or retain top talent as their main risks in India, says a report by global professional services company Aon.

In Aon’s 2023 Global Risk Management Survey, the businesses surveyed listed cyberattacks or data breaches as their topmost concern, up from being at the seventh position in the company’s 2021 survey.

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In its ninth edition in 2023, the biennial survey gathered inputs from some 3,000 risk managers, c-suite leaders, treasurers, talent professionals and other executives from 61 countries and territories to identify their most pressing business challenges.

Aon’s report said India’s dependency on technology is increasing as adoption of digital infrastructure like the Unified Payments Interface (UPI), Aadhaar and Open Network for Digital Commerce (ONDC) gets deeper. With increasing digitisation, cybercrimes are becoming rampant and the costs and complexities associated with such breaches are forcing organisations to look at risk mitigation and transfer mechanisms to better manage cyber risks.

The report ranks business interruption as the No.2 concern of enterprises globally. For India, however, only 16.7% of Indian companies have reported suffering a loss as compared with 32.2% globally. This shows the ability of Indian firms to deal with incidents in a manner that minimises the impact of business interruption losses.

The survey reveals that failure to attract or retain top talent is the third biggest risk facing organisations in India. Globally, it is ranked as No.4 on the list of critical risks and is expected to remain so till 2026.“As leaders look to the future of their businesses, the risk landscape keeps changing due to the rising geopolitical and macroeconomic volatility,” said Nitin Sethi, chief executive officer of talent solutions in India at Aon, in a statement. “With more than 2x companies reporting a loss due to talent compared to cyber ranked number one, failure to attract/retain top talent can have serious repercussions in a volatile environment.”He said companies depend on top talent to bring in fresh thinking, new strategies, innovation and creativity — all critical elements to remaining competitive.

“Data-driven models can highlight the risk of attrition, the impact of engagement and other risk factors of talent loss. There is a compelling need for Indian businesses to therefore leverage advanced data analytics and experts to understand and manage the dynamics of integrated risks,” he said.

The top ten business risks in India, according to the 2023 Global Risk Management Survey, are:

1. Cyber Attack/Data Breach

2. Business Interruption

3. Failure to Attract or Retain Top Talent

4. Failure to Innovate/Meet Customer Needs

5. Property Damage

6. Product Liability/Recall

7. Rapidly Changing Market Trends

8. Supply Chain/Distribution Failure

9. Personal Liability (Directors and Officers)

10. Increasing Competition

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