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ICICI Lombard & IRM India Risk Index Report Elevates Risk Management

In Business
December 29, 2023

MUMBAI:
ICICI Lombard General Insurance Company Limited, one of India’s leading general insurers, partners with IRM (Institute of Risk Management), world’s leading certifying body for Enterprise Risk Management (ERM) Examinations across 140 countries, to release an exclusive joint report offering invaluable insights into India Inc.’s risk landscape. This collaboration dives deep into the heartbeat of India Inc.’s risk management scene, aiming to be more than just a report – it is a roadmap for businesses to navigate the unpredictable journey ahead. The report promises not just insights but practical strategies, tailored to empower India Inc. with the resilience needed to seize opportunities in the next decade. Its distinctiveness lies in its comprehensive coverage of the entire Risk Journey.

The report kicks off by thoroughly examining short-term and mid-term risks globally and in India, diving into the vital phase of Risk Identification. Drawing from past events resulting in insurance claims, it distils practical lessons. Stressing the need for preparedness, the report urges entities to evaluate risks, and their maturity levels. Ultimately, the report serves as a must-have guide, offering strategic actionable to strengthen India Inc.’s risk management practice.

Sandeep Goradia, Chief of the Corporate Solution Group at ICICI Lombard, expressed, “This report goes beyond conventional information; it serves as a strategic guide, a toolkit imbued with empowerment. It is not just about comprehending risks; it’s about equipping India Inc. with profound knowledge to risk management. As we approach the New Year, this report becomes our guiding light, providing clarity in complexity and instilling confidence amidst evolving risks. It’s our ally, directing us toward a future where risks aren’t hurdles but stepping stones to success, helping us navigate uncertainties with insight, foresight, and unwavering confidence.”

Hersh Shah, CEO at IRM India Affiliate said, “The symbiotic relationship between professional expertise and insurance intelligence allows for a comprehensive exploration of the multifaceted nature of risks on the horizon. This report delves into future risk themes that are set to shape our world, ranging from the intangible landscapes of cyber threats and technology disruptions, to the tangible realities of climate change, geopolitical tensions, and societal shifts. As the world’s leading certifying body for ERM qualifications, in collaboration with ICICI Lombard, we hope that by shedding light on the risks and opportunities of the future, we can inspire proactive strategies and cultivate a culture of preparedness amongst individuals, organisations and society in our long term vision of building a resilient Aatmanirbhar Bharat.”

The key Insights underscore essential disparities in risk perceptions and preparedness between global entities and Indian counterparts –

Knowing and Understanding Risk in today’s corporate landscape
Looking at risk with the right perception: Global enterprises discern a riskier environment compared to Indian counterparts. The global environment rating for total risk is between 5.9 – 6.4 whereas Indian enterprises rate from 4.2 – 6.3 on a scale 0 to 10, 10 being highest risk
Mind the Gap: It requires accurate, refined and enhanced preparedness to confront top risks. According to the findings, 67% organizations not fully prepared to face even the top risk.

Risk Coverage Deficiency: Poised at the precipice of progress, it needs to elevate its risk management solution design. Close to one third of respondents, do not have any Cybersecurity skill solution or any insurance to face identified top risks. Talent risk is the most under-covered risk, where 41% of respondents do not have any solution or insurance

Identifying the Risk: The art of Horizon scanning and Emerging risks identification are found wanting short- and medium-term risk rankings are very similar – and similar risks also appear in emerging risks. Horizon scanning and emerging risk identification needs to improve emotional Quotient of Top Management is the only key emerging risk identified

· New risk identified – The climate wake-up call: Profound urgency of Climate Change continues to be undervalued. Only Energy and Utilities, Hospitality, Infrastructure and Real Estate and FMCG sectors identified Climate Change and Natural Disasters as the top risk.