Indian Companies Improve Risk Management Capabilities, ICICI Lombard Index Shows

Indian companies have strengthened their approach to managing risks, according to the latest Corporate India Risk Index (CIRI) released by ICICI Lombard. The 2024 index shows a score of 65, up from 64 in 2023, indicating improved risk handling across multiple sectors despite ongoing economic uncertainties and technological disruptions.

The fifth edition of the index, developed in partnership with Frost & Sullivan, reveals that nine industries have reached "Superior Risk Index" status, with pharmaceuticals, healthcare, banking and financial services, and manufacturing sectors leading the improvement.

Artificial intelligence emerged as both a significant opportunity and a potential threat in this year's findings. Companies across sectors are using AI for various applications, from predictive analytics in banking to diagnostics in healthcare, but this adoption has introduced new concerns around data privacy, cybersecurity, and ethical governance.

"Indian companies are no longer reacting to risk—they are managing their risks better," said Sandeep Goradia, Chief Corporate Solutions at ICICI Lombard. "This upward trend, despite increasing challenges, demonstrates a proactive shift towards stronger risk mitigation frameworks."

The index improvement comes during a period of considerable external pressure, including geopolitical instability, economic fluctuations, and domestic uncertainty related to national elections. The report indicates companies are responding with more predictive and disciplined risk management practices.

According to Aroop Zutshi, Global President at Frost & Sullivan, there has been "a decisive shift from reactive risk management to proactive risk intelligence" across Indian businesses, with risk management becoming integrated at the boardroom level.

The CIRI has been tracking corporate India's risk preparedness since 2019, providing insight into how businesses adapt to changing threats. This year's rise in the Risk Management Index reflects deeper engagement at leadership levels and greater focus on scenario-based planning.

ICICI Lombard, the country's leading private general insurance company, reported a Gross Written Premium of ₹282.58 billion for the year ended March 31, 2025. The company has over 328 branches nationwide and has issued more than 37.6 million policies.

The findings suggest Indian corporations are increasingly viewing risk management not merely as a compliance requirement but as a strategic advantage that can drive sustainable growth in an unpredictable business environment.