INDIA RISK SURVEY Report 2022
FICCI and Pinkerton publish the India Risk Survey (IRS) report to identify possible business risks and difficulties prevailing in the Indian business landscape. The survey identifies 12 key areas of concern for businesses and 5 emerging risks that might seriously damage India’s business ecosystem. The results are derived from a survey that involved stakeholders and business executives from various industries. The India Risk Survey Report is frequently seen as a significant predictor of the risks that Indian firms must deal with. Businesses use the report to evaluate their risk exposure and decide how to operate in India. In addition, the media and decision-makers frequently use the survey’s conclusions as proof of the difficulties experienced by Indian entrepreneurs. The India Risk Survey Report gives valuable information about the risks that firms face, like Natural Hazards, Information & Cyber Insecurity, Intellectual Property Theft, Fire, and Crimes, and enables them to make defensible choices regarding their operations. Surpassing the risk of Natural Hazards and pandemics, the risk focus has drastically shifted to Intellectual Property Theft and Information & Cyber Insecurity due to the increasing interconnectivity of businesses’ reliance on technology, and the vast amounts of data that are now stored electronically. Offices have been replaced by hybrid working arrangements, and growing digitization has accelerated the threat. Cases of industrial accidents along with road accidents have been rising as they occur suddenly and without warning, often causing extensive damage to property and equipment. They can also lead to injuries or even fatalities, leading to both reputational and revenue damage for the business. While business espionage is not a new phenomenon, but it has become more prevalent in recent years as the world of business has become more globalized. Companies are now operating on a much larger playing field and there is more at stake. The goal of this survey is to identify potential risks in the context of a changing global environment, allowing business leaders to assess their circumspection for disruptive events like rapid digitalization, accidents, and business espionage, in the future and to ameliorate risk mitigation techniques. Nonetheless, based on each industry’s risk appetite and current risk mitigation plans, the risks identified and their effects may differ from one to the next. The survey’s outcome should help organizations create a 360-degree risk management strategy that will allow them to foresee and prepare for any eventuality, limit interruption, and protect against any risks in advance. Rohit Karnatak Vice President – India APAC & EMEA Global Screening, Pinkerton The India Risk Survey has successfully reached its 10th year milestone, and I feel very proud to say that this survey report has helped many organizations (both private and public sector) in identifying, safeguarding themselves from the potential or prevailing risks in this dynamic business environment and also helps them to create a strategy for their risk governance.Over the years as we introduced the Pinkerton Risk Wheel which has now matured to a more comprehensive risk governance. Risk governance involves how effectively organizations are managing risks by establishing policies, procedures, and frameworks so that the business operates in a responsible and sustainable manner. Effective risk governance is when it is implemented at the planning and strategic level of the decision-making process in an organization. To make it more effective, one should engage with subject matter experts or consulting firms who have expertise in the risk advisory domain. This year’s risk survey has outlined the top 3 risks which are Intellectual Property Theft, Information & Cyber Insecurity, and Accidents ranked in that order. The industry leaders ranked Intellectual Property (IP) Theft as the risk which is the most prevalent threat to their business. Until 2019, IP Theft was not a part of the top 5 risks, but from 2021 it started to emerge among the top 3 risks and finally making to the number one risk this year. When we delved deeper, we could understand that the Indian businesses are understanding the processes, innovations and techniques too are valuable to a business and thus needs to be adequately protected. In the initial years of the report, most businesses only identified counterfeiting of products or violation of trademarks as an IP risk. The manufacturing of a product or the process of a service both are like soft power and need protection as much as the counterfeit product/service that may have been introduced in the market. Pinkerton globally have been focusing on this risk and have been helping organizations make strategies to protect these Intellectual Properties via with the help of Pinkerton’s Global Investigation Services with a dedicated service line of Intellectual Property Protection Service. India Risk Survey 2022 also highlights the top 5 emerging risks which have been prevailing in this past year of 2022 and posed a threat to businesses. The most prevalent emerging risk was the ‘Safety and Security of Key Personnel,’ This risk has emerged at the top because of the threats present for the C-Suites and Directors both internally as well as externally of their business premises. The need for a safe work environment along with the safety & security required during the executive’s business travels has increased manifolds in recent times and therefore, organizations are opting for Executive Protection Services to protect their key personnel from these threats. If an organization keeps risk governance at the center when planning their risk strategies and looks beyond the realm of just compliance, it will help the organization to have an effective, comprehensive risk mitigation covering all four quadrants of risk. We hope that the report will add value to your organization’s risk governance strategy. SUMMARY Each year, the India Risk Survey (IRS) gathers 12 risks that, in the opinion of business enterprises and subject-matter experts, represent the most significant threats that might disrupt Indian business operations. To comprehend and evaluate each risk independently and to conduct analysis, the survey employs the Pinkerton Risk Wheel structure. The Pinkerton Risk Wheel has four different risk categories. Based on the type of threats, the risks are classified. Each…