Cyberattacks, data breaches top business risks in India: survey

Business interruption stands as the second-highest risk whilst talent retention challenges rank third.

Cyberattacks and data breaches have emerged as the foremost concern for businesses operating in India, according to the 2023 edition of Aon's biennial survey.

The report said that cyberattacks have escalated from the seventh position in 2021 to become the most significant risk for Indian businesses. 

As India's digital infrastructure becomes more widely adopted, its reliance on technology is expected to grow. However, this expansion also brings a surge in cybercrimes, prompting organizations to seek better risk mitigation and transfer mechanisms to handle the associated costs and complexities of such breaches.

Meanwhile, business interruption ranked second globally and in India. However, only 16.7% of Indian companies have reported losses compared to 32.2% globally, highlighting the resilience of Indian firms in swiftly and effectively managing incidents to mitigate business interruption impacts.

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Additionally, attracting and retaining top talent is the third-largest risk for Indian organizations, ranked fourth globally, and is expected to remain so until 2026.

“In a time of rapid change and heightened volatility, finance, risk, people leaders need to come together to understand how these risks are interconnected,” said Jon Pipe, CEO and principal officer of Aon India Insurance Brokers Private Limited.

“The disruptive nature of the Indian business landscape has increased awareness around the need for cyber insurance and business interruption losses,” he added.