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Indian Corporates Enhance Risk Management, Navigate Global Challenges: ICICI Lombard 2023 Report
Indian enterprises have shown resilience and strategic advancements, leading to better risk management scores despite global challenges.
The ICICI Lombard Corporate India Risk Index (CIRI) 2023, a study conducted by ICICI Lombard in collaboration with Frost and Sullivan, reveals an improvement in the risk index score from 63 in 2022 to 64 in 2023. The CIRI comprises 32 risk elements across six dimensions, based on global risk management best practices.
Improved Risk Management Practices
Sandeep Goradia, Chief - Corporate Solutions Group at ICICI Lombard, said that the improved score in the fourth edition of the Corporate Risk Index is evidence of efficient risk management practices adopted by Indian corporates.
He added that ICICI Lombard helps clients manage risk with bespoke services like property and engineering loss prevention, comprehensive risk assessments, and cyber security solutions.
The 2023 Risk Index shows all 20 sectors in 'Superior' or 'Optimal Risk Handling,' with nine sectors demonstrating 'Superior' handling. The BFSI sector showed significant improvements in cybersecurity measures but remained susceptible to global economic volatility.
Notable Advancements and Challenges
The Manufacturing, Metals & Mining, and New Age sectors displayed notable advancements in their risk index scores. However, the FMCG and Biotech & Lifesciences sectors faced challenges due to dynamic consumer demands and geopolitical events, resulting in a slight downgrade in their risk index scores.
Aroop Zuthsi, Global President and Managing Partner at Frost & Sullivan, praised the improved risk management practices of Indian companies. He said that the steady improvement in risk index score for the country as a whole indicates a very positive outlook for Indian corporates.
Government initiatives such as "Make in India," continued investments in infrastructure, and promotion of sustainable energy management have played a crucial role in strengthening sector resilience.
The ongoing digital transformation and AI integration across sectors have further enhanced operational efficiencies and risk management practices.
The report highlights widespread adoption of telemedicine, online banking, and remote work solutions due to the COVID-19 pandemic. Sectors have also focused on sustainability with significant investments in renewable energy sources, eco-friendly practices, and precision farming techniques.
In conclusion, the findings of the Corporate India Risk Index 2023 emphasize the importance of proactive risk management and strategic advancements. ICICI Lombard remains committed to supporting Indian enterprises on their path towards resilience and sustainable growth.
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