Risk Culture needs a big focus and needs to be owned and driven from the top of
the organization.
India Inc. grapples with growing concerns over cybersecurity, talent
management, climate change, legal/regulatory and macroeconomic risks
Risk Management processes improve but full preparedness lags even for top
risks.
Big red flag on risk disclosures in annual reports.
Mumbai, September 27, 2024: As India progresses toward becoming a developed
nation under the Viksit Bharat 2047 program, it maintains rapid economic growth. This
progress, amid a complex risk environment, presents both opportunities and challenges
for Indian industries. A strong risk culture will enable an organisation to confidently
pursue its objectives by taking calculated risks and effectively managing potential
threats and hazards.
India Risk Report 2024 by ICICI Lombard and IRM India highlights the crucial need for
embedding a risk culture into organizational strategies. The report emphasises a simple
A-B-C approach for understanding the “Risk Culture” of an organization. Attitudes of
individuals and groups shape their Behaviours. Over time, these repeated behaviours
form the Culture, which in turn influences the attitudes and behaviours within the
organisation.
This report is a timely reminder of the importance of proactive risk management. It
assesses the self-evaluation of processes and cultural standing within Indian
enterprises, based on a comprehensive survey of risk perceptions, management
practices, and cultural aspects. It equips businesses with actionable insights to navigate
the complex risk landscape and unlock opportunities for sustainable growth.
The comprehensive study, combining primary and secondary research, incorporates
valuable insights from business and risk leaders across various fields. This report aims
to enhance our collective understanding and management of risks while promoting a
resilient organizational culture grounded in effective risk practices. It examines risk
disclosures from over 500 Indian companies and more than 50 global companies,
based on their annual reports for years 2022 and 2023. The quantity and quality of these disclosures provide insights into the prevailing risk culture within these
organizations.
