Cyber Threats and Data Privacy: Key Risks Facing Indian Companies in 2025, According to Aon Survey

Navigating India’s Risk Landscape: Insights from Aon plc’s 2025 Global Risk Management Survey

Aon plc (NYSE: AON), a global leader in professional services, recently unveiled the Indian findings of its 2025 Global Risk Management Survey. This survey highlights the evolving risk priorities in India, showcasing how businesses are grappling with digital disruption, talent scarcity, and regulatory complexities.

A Closer Look at the Survey

The biennial survey elicited insights from nearly 3,000 risk managers, C-suite executives, and leaders across 63 countries. The findings indicate a global shift in risk management approaches, driven by technological advancements, economic conditions, and geopolitical tensions. In India, businesses are demonstrating remarkable resilience, but significant challenges remain ahead.

Top Risks Facing Indian Businesses

The survey revealed that the landscape for businesses in India is increasingly precarious. At the forefront remains Cyber Attacks/Data Breach, which is the primary risk mentioned by Indian firms. Coupled with this concern, issues surrounding Data Privacy Requirements/Non-Compliance have emerged as significant threats, reflecting a growing awareness of the importance of regulatory frameworks, both globally and locally.

In addition to cybersecurity, Indian businesses are contending with a suite of risks that includes:

1. Cyber Attacks/Data Breach
2. Economic Slowdown/Slow Recovery
3. Business Interruption
4. Data Privacy (including GDPR) Requirements/Non-Compliance
5. Failure to Attract or Retain Top Talent
6. Regulatory/Legislative Changes
7. Property Damage
8. Cash Flow/Liquidity Risk
9. Exchange Rate Fluctuation
10. Damage to Reputation/Brand

Insights from Industry Leaders

According to Rishi Mehra, Aon’s CEO for India, businesses are showcasing incredible agility amidst these challenges. The escalating frequency and severity of cyber attacks necessitate that organizations not only bolster their defenses but also swiftly adapt to the digital landscape. "Investing in robust risk management strategies helps companies better navigate today’s complex environment and positions them for sustainable success," he emphasized.

The Impact of Risks on Business

The survey findings also reveal that many Indian businesses have suffered substantial losses due to critical risks. Approximately 77.8% of respondents reported financial impacts from property damage, 46.2% from business interruptions, and 63.6% due to exchange rate fluctuations. Alarmingly, talent-related challenges and cash flow risks have similarly affected nearly half of the businesses queried.

Formalizing Risk Management Strategies

Recognizing the need for structured responses, a considerable 70% of businesses surveyed have formalized their risk management strategies, establishing dedicated departments. Concurrently, 64.9% of participants actively measure the total cost of insurable risks, indicating a proactive approach to understanding and mitigating potential impacts.

Mitigation efforts reveal that 92.9% of firms have plans for cyber attack responses, while 90.9% have protocols in place for property damage. Moreover, more than half are addressing risks related to talent retention and data privacy. Organizations are increasingly leveraging expert advice and techniques, with a notable 91.9% engaging in captive insurance solutions to enhance their financial resilience and risk transfer capacity.

Future Trends and Challenges

Looking ahead, Indian businesses anticipate a rapidly evolving risk landscape influenced by technology advancements and climate change over the next three years. Cybersecurity remains paramount, with AI emerging as a significant risk factor, indicating both its transformative potential and the uncertainties it can introduce. Businesses also face persistent threats from economic slowdowns and business interruptions, necessitating continuous investment in resilience strategies. Climate change’s consequences on supply chains and infrastructure are becoming increasingly pressing, making it an issue that businesses cannot afford to overlook.

Projected Future Risks by 2028

As Indian firms prepare for the future, survey results indicate the top five anticipated risks by 2028 include:

1. Cyber Attacks/Data Breach
2. AI
3. Economic Slowdown/Slow Recovery
4. Business Interruption
5. Climate Change

Emphasizing Adaptive Risk Management

Sushant Sarin, the managing director and head of strategy and Commercial Risk Solutions for India at Aon, underscores the importance of adaptive risk management. "In an era where disruption is the norm, businesses need to prioritize digital and climate resilience, engage in scenario planning, and continuously train their workforce." Data-driven insights and competitive benchmarking will play crucial roles in building resilience in this complex environment.

For those wishing to explore the full spectrum of these insights and find out how Aon can assist in navigating today’s disruptive dynamics, more information is available at Aon’s Global Risk Management Survey.