BENGALURU: Cybersecurity breaches have emerged as the biggest threat to organisational performance in India, according to the FICCI-EY Risk Survey 2026, with 51% of companies identifying it as their top risk. The survey highlights how growing pressures from technology, governance, geopolitics and workforce challenges are reshaping business priorities across sectors.
The report, titled "Risk outlook – A compass to India’s risk landscape", is based on inputs from senior leaders across industries and examines risks affecting pricing, supply chains, talent strategies and technology investments. It finds that risk management is no longer viewed as a standalone function but is becoming central to overall business strategy.
After cybersecurity, changing customer demands and expectations rank as the second-highest risk, cited by 49% of respondents. Geopolitical events follow closely at 48%, underlining the impact of global uncertainty on Indian businesses.
Technology-related risks feature strongly in the findings. About 61% of respondents say rapid technological change and digital disruption are affecting their competitive position, while the same proportion see cyber-attacks and data breaches as major financial and reputational threats. More than half of those surveyed point to risks such as data theft and insider fraud, and many admit they are struggling to keep up with increasingly sophisticated cyber threats.
Artificial intelligence (AI) is identified as a growing area of concern. Around 60% of respondents believe inadequate adoption of emerging technologies, including AI, can harm operational effectiveness. At the same time, over half feel that AI-related risks, including ethical and governance issues, are not being effectively managed.
Commenting on the findings, Rajeev Sharma 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, governance structures and long-term planning.”
Climate and ESG-related risks are also translating into financial exposure. Nearly 45% of respondents cite the financial impact of climate change as a critical risk, while concerns around ESG compliance and board oversight remain significant.
Operational risks continue to trouble businesses, with 54% highlighting supply chain disruptions as a threat to continuity. Talent shortages, skill gaps and regulatory changes further add to the complex risk landscape Indian companies are facing in 2026, the report said.