Cybersecurity breaches emerge as top risk for India Inc: FICCI-EY Survey

Cybersecurity incidents are now seen as the single biggest threat to business performance for Indian companies, with over half of senior executives (51%) naming them as their top concern, according to a survey released on Sunday.

The FICCI-EY Risk Survey 2026 also highlighted mounting pressure from market and geopolitical shifts. Nearly half of respondents pointed to evolving customer expectations (49%) as a key challenge, while 48% cited geopolitical developments, reflecting the increasingly external nature of corporate risk exposure.

Based on feedback from senior leaders across industries, the report indicates that technology risks are becoming inseparable from day-to-day operational resilience. Rapid digital change is altering competitive landscapes, with 61% of participants saying technological disruption is already influencing their ability to compete. An identical share viewed cyber intrusions and data breaches as material threats to finances and reputation.

“More than half, 57%, report potential data theft and insider fraud as significant risks, and 47 % acknowledge difficulty in addressing increasingly sophisticated cyber threats,” the report stated.

The study draws on a web-based poll of 137 senior decision-makers, including CXOs. Technology firms made up the largest segment of respondents at 21%, followed by professional services organisations.

Artificial intelligence was identified as both an opportunity gap and a governance concern. About 60% of respondents said falling behind in adopting emerging technologies, including AI, could weaken operational performance. At the same time, 54% indicated that risks linked to AI — particularly ethical and oversight issues — are not being sufficiently addressed.

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”.

Workforce pressures also featured prominently. Around 64% of executives warned that shortages of skilled talent could undermine organisational performance, while 59% flagged succession planning weaknesses as a potential threat to continuity.

Regulatory pressures are also rising. About 67% of respondents said regulatory changes require active management, while 40% reported that their existing compliance frameworks are struggling to keep pace with evolving requirements.

Climate and ESG-related risks are increasingly being viewed through a financial lens. Nearly 45% of executives identified climate-related financial exposure as a critical operational risk in India, and 44% said non-compliance with ESG disclosure norms could materially affect their organisations.

“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.

Supply chain stability continues to be a concern, with 54% of respondents citing disruptions as a risk to operational continuity and business performance, the survey found.