INDIA RISK SURVEY 2017
“The sixth edition of the India Risk Survey is based on a comprehensive survey spanning across several sectors of the economy and geographical regions of India. This survey is an endeavor to examine and evaluate the ‘potentially destructive’ risks to business undertakings in India. The survey encompasses 12 key risks that pose a number of threats to the entire economic ecosystem of the country. It is an attempt to sensitize the Government and the corporate world about emerging risks and possible dangers these risks could pose to business establishments. I am confident that this report will be of considerable value and will provide a referral to understand the complexity of these risks across the spectrum of stakeholders i.e., policymakers, corporate and individuals of the civil society.” – Dr. A. Didar Singh, Secretary General, FICCI Emerging as one of the fastest growing economies in the world, India is expected to outperform most other major economies in 2017, according to international rating agencies. India is estimated to grow at more than 7 per cent in GDP growth in 2017. Pro-investor policies have been implemented by the government to improve ease of doing business. Through flagship programmes such as ‘Make in India,’ ‘Digital India,’ and ‘Skill India,’ and effectively addressing FDI prospects across sectors, the government is striving to promote manufacturing activity locally, boost job creation and skilled workforce, local and foreign investment, and ITpowered infrastructure capable of supporting logistically-robust and multimodal networks. As per the latest IMF projection, India’s growth rate is expected to be 7.2 per cent in the 2017-18 fiscal year and 7.7 per cent in 2018-19 owing to critical structural reforms, favorable terms of trade, and lower external vulnerabilities. It is encouraging to note that the acceleration of structural reforms is bringing a new growth impetus. The Goods and Services Tax (GST), having implemented from July 2017, should help make India more of a single market and thus spur productivity, competitiveness, job creation and incomes and investment in the country. Risks to business establishments are detrimental to growth and development of any country. The nature of risks globally have changed enormously; and with their occurrences becoming more unexpected and their effects becoming more profound, risks need to be taken more seriously. Further, due to rapid digital transformation of businesses, underlying infrastructure is becoming more complex. In these changing times it is critical to understand emerging risks. Knowledge about impending risks can benefit investors, so that they could take well-informed business decisions. Given that India is increasingly attracting the international business community with its extensive regulatory, legal, and diplomatic manoeuvres, companies cannot underestimate the multitude of challenges in business operations in India; particularly with reference to the vastly divergent risk landscape the country offers. A lack of preparation against risk mitigation could leave the entire financial as well as operational functions vulnerable to attacks with disastrous consequences for a long time. A holistic risk-management strategy would help businesses to both anticipate and preempt existing and evolving risks, and also deal with them effectively. The evolving nature of risks is such that they pose a requirement of being regularly assessed and understood. The inter-linkages between the various risks that exist and demand a holistic approach to safeguard the safety and security of people, assets, and information. India is undergoing drastic changes in terms of development in areas of infrastructure, Information Technology (IT), and so on. As we are blooming into a key business destination, a robust system of protection is crucial. The India Risk Survey (IRS) Report is designed to offer industries and organisations the insight necessary to compete in this increasingly complex operation environment. The India Risk Survey 2017, attempts to highlight the perception of risks from leading businesses, drawing from public voices, as well as professionals from different sectors across the country with a focus on operational safety and strategic risks. The report provides an elaborate telling of the current scenario in terms of global risks and threats. By attempting to cover all the levels of management, from top to bottom, the survey has tapped on various industries including IT, manufacturing, retail, infrastructure, transportation, and finance, amongst others. The survey stretched out to all corners of the country and beyond, including APAC, Americas, and the EMEA region. “The purpose of India Risk Survey 2017 remains to provide a handy guide, calling attention to potential risks, and providing a base for planning the necessary preventive strategies to protect one’s organization from the negative impact of these risks. With every year, the survey aims to engage with the industry, and inform and sensitize all stakeholders about the emerging risks for developing economies like India so that well planned and strategic policy decisions can be made.” – Rohit Karnatak, MD – India, APAC & EMEA, Global Screening, Pinkerton The survey consists of 12 risks that pose the most significant threats to business perception and operations in the country. The threats are inter connected and overlap across domains, sectors and geographies. New risks have been identified on the basis of this year’s survey, which are Risk of Non-compliance, Business Investment Risk, and Legal Regulatory Risk. Information & Cyber Insecurity India Risk Survey ranks ‘Information & Cyber Insecurity’ as the biggest risk in 2017. In the recent past, there has been an increase in incidences of cyber-attacks and potential espionage on cyber-security. Given the security problems, there should be increased emphasis on, and investment in, the security of cyber infrastructure, and also raising awareness for safe usage of cyberspace while on the job and doing personal work. There is an immediate need for more attention to counter future cyber-attacks or attempts thereof via rigorous employee training sessions and stronger cooperation between business and the Government on related cyber-security threats. In India, ‘Information & Cyber Insecurity’ has become more pronounced due to the shift that the nation is undergoing towards digitisation of various assets and services being delivered via internet and mobile platforms; and the ever-present loopholes that hackers breach upon. The WannaCry malware incident has been, by far, the worst incident this year in which several systems were attacked,…