ICICI Lombard Corporate India Risk Index 2023

Despite world headwinds, Indian corporates display strong danger administration and strategic developments within the fourth version of the ICICI Lombard Corporate India Risk Index (CIRI) 2023

Mumbai, June 25, 2024:Despite dealing with world headwinds and elevated danger publicity in sure sectors, Indian enterprises have demonstrated resilience and strategic developments, resulting in improved danger administration scores. The fourth version of the ICICI Lombard Corporate India Risk Index (CIRI) 2023, a proprietary research carried out by ICICI Lombard in collaboration with Frost and Sullivan, exhibits an enchancment within the danger index rating from 63 in 2022 to 64 in 2023. ICICI Lombard, India’s main non-public normal insurer continues to pioneer in creating first-of-its-kind danger indices for India Inc. and recognizing organizations for his or her danger governance practices via the India Risk Management Awards (IRMA).

The CIRI 2023 contains 32 danger parts throughout six broad dimensions, drawing upon world danger administration finest practices. Our distinctive scale identifies optimum administration of the dangers corporations are individually uncovered to, enabling them to undertake efficient practices, with out over-investing.

Sandeep Goradia, Chief – Corporate Solutions Group at ICICI Lombard,commented on the findings, “The ICICI Lombard Corporate India Risk Index 2023 empowers companies in assessing danger and navigating strategically whereas enhancing enterprise worth. The improved rating within the fourth version of the Corporate Risk Index is a testomony to the environment friendly danger administration practices adopted by Indian corporates within the face of world headwinds and challenges. As we transfer ahead, corporations should keep forward of the curve and undertake complete and environment friendly danger administration practices. ICICI Lombard helps purchasers handle danger with bespoke providers like property and engineering loss prevention, complete danger assessments and cyber safety options. These providers present a holistic view of the chance, enabling purchasers to boost operational resilience for long-term stability and development.”

Rising Risk Index Indicates Better Risk Management amongst Indian Companies

The 2023 Risk Index exhibits all 20 sectors in ‘Superior’ or ‘Optimal Risk Handling,’ with 9 sectors demonstrating ‘Superior’ dealing with, together with Telecom & Communication, Pharmaceuticals, Healthcare Delivery, Automotive & Ancillary, Manufacturing, FMCG, Media & Gaming, New Age & Start-up, and Tourism & Hospitality. The BFSI sector confirmed important enhancements in cybersecurity measures however remained inclined to world financial volatility.

The Manufacturing, Metals & Mining, and New Age sectors displayed notable developments of their danger index scores. However, the FMCG and Biotech & Lifesciences sectors confronted challenges as a consequence of dynamic client calls for and geopolitical occasions, leading to a slight downgrade of their danger index scores.

Aroop Zuthsi, Global President and Managing Partner at Frost & Sullivan, appreciative of the improved danger administration practices of Indian corporations, said, “The ICICI Lombard Corporate Risk Index is a definitive instrument to measure the strategic danger administration of corporates. The regular enchancment in danger index rating for the nation as an entire, mixed with the truth that there are not any sectors under the optimum danger index class, signifies a really constructive outlook for Indian corporates. In the face of a really dynamic enterprise surroundings, in India and globally, it’s heartening to see Indian corporates growing a transparent knack for successfully managing the dangers they’re uncovered to.”

Government initiatives comparable to “Make in India,” continued investments in infrastructure, and the promotion of sustainable vitality administration have performed a pivotal function in bolstering sector resilience. The ongoing digital transformation and AI integration throughout sectors have additional enhanced operational efficiencies and danger administration practices.

The report highlights the widespread adoption of telemedicine, on-line banking, and distant work options, pushed by the COVID-19 pandemic. Sectors have additionally targeted on sustainability, with important investments in renewable vitality sources, eco-friendly practices, and precision farming strategies.

The findings of the Corporate India Risk Index 2023 underscore the significance of proactive danger administration and strategic developments. ICICI Lombard stays devoted to supporting Indian enterprises of their journey in the direction of resilience and sustainable development.