Corporate India boosts risk preparedness amid global and domestic uncertainty: ICICI Lombard–Frost & Sullivan report

Indian companies are showing increased preparedness in managing business uncertainty, according to the fifth edition of the Corporate India Risk Index (CIRI) 2024, developed by ICICI Lombard in partnership with Frost & Sullivan. The index reports an uptick in India’s overall CIRI score from 64 in 2023 to 65 in 2024, reflecting a shift toward more structured and forward-looking risk strategies.

The CIRI 2024 findings indicate that Indian enterprises are actively building systems to navigate a wide range of pressures, including geopolitical instability, economic slowdown, technological shifts, and domestic uncertainty in the lead-up to national elections.

Sandeep Goradia, Chief Corporate Solutions, International, Bancassurance at ICICI Lombard, stated, “This year’s findings clearly show that Indian companies are no longer reacting to risk—they are managing their risks better. This progress is evident in the improvement showcased by the Corporate India Risk Index. This upward trend, despite increasing challenges, demonstrates a proactive shift towards stronger risk mitigation frameworks. We are seeing a shift toward long-term resilience, where AI, sustainability and digital agility are now foundational to corporate strategy. At ICICI Lombard, we believe effective risk governance is not just a compliance exercise—it is an enabler of sustained growth.”

The 2024 index highlights an improvement across three main indicators. The Risk Management Index rose from 67 to 68, and the Risk Exposure Index increased from 64 to 65. The data suggests an increasing ability among companies to anticipate and manage evolving threats.

The report also notes that nine sectors attained ‘Superior Risk Index’ status, including Pharmaceuticals, Healthcare, BFSI, and Manufacturing. These industries demonstrated increased preparedness by embedding resilience directly into their operational and strategic planning.

Artificial Intelligence emerged as a defining theme in 2024. Companies adopted AI to improve efficiency and foresight, such as predictive analytics in BFSI and manufacturing, AI-powered diagnostics in healthcare, and autonomous systems in the automotive sector. However, this adoption also introduced new vulnerabilities related to data privacy, cybersecurity, and ethical concerns. Many organisations responded by investing in compliance frameworks and AI-specific risk mitigation.

Aroop Zutshi, Global President and Managing Partner at Frost & Sullivan, commented, “The evolution of India’s risk culture is not just visible—it is transformative. We are seeing a decisive shift from reactive risk management to proactive risk intelligence, where anticipation, agility, and strategic foresight are now core to business resilience. Sectors such as Pharmaceuticals, BFSI, and Manufacturing are leading this transition, embedding risk thinking at the boardroom level and redefining resilience as a source of competitive advantage for India Inc.”

The CIRI 2024 report suggests that Indian companies are adopting a more predictive and structured approach to risk. This includes board-level engagement, stronger governance practices, and scenario-based planning. The trend signals a strategic repositioning of risk management from a defensive necessity to a central element of long-term competitiveness.