Indian Corporates Steer Challenges With Superior Risk Handling

Total banking assets: Rs138.38 lakh crores in public sector, Rs83.39 lakh crores in private sector

Sandeep Goradia, Chief - Corporate Solutions Group at ICICI Lombard

FinTech BizNews Service

Mumbai, June 25, 2024: Despite facing global headwinds and increased risk exposure in certain sectors, Indian enterprises have demonstrated resilience and strategic advancements, leading to improved risk management scores. The fourth edition of the ICICI Lombard Corporate India Risk Index (CIRI) 2023, a proprietary study conducted by ICICI Lombard in collaboration with Frost and Sullivan, shows an improvement in the risk index score from 63 in 2022 to 64 in 2023. ICICI Lombard, India’s leading private general insurer continues to pioneer in creating first-of-its-kind risk indices for India Inc. and recognizing organizations for their risk governance practices through the India Risk Management Awards (IRMA).

The CIRI 2023 comprises 32 risk elements across six broad dimensions, drawing upon global risk management best practices. Our unique scale identifies optimal management of the risks companies are individually exposed to, enabling them to adopt effective practices, without over-investing.

The key highlights for the BFSI sector:

  • Total banking assets: Rs138.38 lakh crores in public sector, Rs 83.39 lakh crores in private sector
  • Public sector banks earned Rs8.41 lakh crores in interest, private banks Rs5.74 lakh crores
  • Pradhan Mantri Jan Dhan Yojana facilitated over 486 crores new bank accounts
  • Non-performing assets declined from Rs9,33,779 crores to Rs5.7 lakh crores during FY18-19 to FY2022-23
  • Projected average inflation of 5.1% to 4.8% in upcoming fiscal years
  • Implementation of 20% Tax Collected at Source on international remittances above Rs700,000
  • Increased focus on cybersecurity measures due to rise in cyber-attacks targeting BFSI units

Sandeep Goradia, Chief - Corporate Solutions Group at ICICI Lombard, commented on the findings, "The ICICI Lombard Corporate India Risk Index 2023 empowers businesses in assessing risk and navigating strategically while enhancing business value. The improved score in the fourth edition of the Corporate Risk Index is a testament to the efficient risk management practices adopted by Indian corporates in the face of global headwinds and challenges. As we move forward, companies must stay ahead of the curve and adopt comprehensive and efficient risk management practices. ICICI Lombard helps clients manage risk with bespoke services like property and engineering loss prevention, comprehensive risk assessments and cyber security solutions. These services provide a holistic view of the risk, enabling clients to enhance operational resilience for long-term stability and growth.”

Rising Risk Index Indicates Better Risk Management among Indian Companies

Key Factors Comparison



Corporate India Risk Index



Corporate India Risk Management



Corporate India Risk Exposure




The 2023 Risk Index shows all 20 sectors in 'Superior' or 'Optimal Risk Handling,' with nine sectors demonstrating 'Superior' handling, including Telecom & Communication, Pharmaceuticals, Healthcare Delivery, Automotive & Ancillary, Manufacturing, FMCG, Media & Gaming, New Age & Start-up, and Tourism & Hospitality. The BFSI sector showed significant improvements in cybersecurity measures but remained susceptible to global economic volatility.

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, appreciative of the improved risk management practices of Indian companies, stated, “The ICICI Lombard Corporate Risk Index is a definitive tool to measure the strategic risk management of corporates. The steady improvement in risk index score for the country as a whole, combined with the fact that there are no sectors below the optimal risk index category, indicates a very positive outlook for Indian corporates. In the face of a very dynamic business environment, in India and globally, it is heartening to see Indian corporates developing a clear knack for effectively managing the risks they are exposed to.”

Government initiatives such as "Make in India," continued investments in infrastructure, and the promotion of sustainable energy management have played a pivotal role in bolstering sector resilience. The ongoing digital transformation and AI integration across sectors have further enhanced operational efficiencies and risk management practices.

The report highlights the widespread adoption of telemedicine, online banking, and remote work solutions, driven by the COVID-19 pandemic. Sectors have also focused on sustainability, with significant investments in renewable energy sources, eco-friendly practices, and precision farming techniques.

The findings of the Corporate India Risk Index 2023 underscore the importance of proactive risk management and strategic advancements. ICICI Lombard remains dedicated to supporting Indian enterprises in their journey towards resilience and sustainable growth.

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