An India Perspective on Top Risks 2022 - Key issues being discussed in the boardroom and C-suite | Executive Summary

Research Conducted by NC State University’s ERM Initiative and Protiviti

The range of uncertainties facing business leaders around the globe in 2022 is overwhelming. Challenges triggered by a rare virus creating a global pandemic continue to unfold, combined with numerous other risk issues, such as Ukraine War Crisis, growing social unrest and polarization, and ever-present challenges ranging from new technologies and digitization innovations to ever-changing markets, strategies, and business models. Staying abreast of emerging risk issues and opportunities is becoming increasingly difficult.

Leaders of organizations in virtually every industry, size of organization and geographic location are reminded all too frequently that they operate in what appears to most to be an increasingly risky global landscape. Boards of directors and executive management teams cannot afford to manage risks casually on a reactive basis, especially considering the rapid pace of disruptive innovation and technological developments in an ever-advancing digital world and the need for resilience and agility at pivoting when new market opportunities and unexpected threats arise.

Protiviti and North Carolina State University’s ERM Initiative are pleased to provide this report focusing on the top risks currently on the minds of global boards of directors and executives. This report contains results from our ninth annual risk survey of directors and executives worldwide to obtain their views on the extent to which a broad collection of risks is likely to affect their organizations over 2022. Same as last year’s survey, this year, also we asked respondents to consider how these risks will affect their organizations a decade from now (in 2031).

Topics

Board Matters Cybersecurity and Privacy Internal Audit and Corporate Governance Risk Management and Regulatory Compliance Business Performance Data, Analytics and Business Intelligence Digital Transformation

Top 10 Risks in the Indian Region - 2022

RISK
RANK

RISK

RISK CATEGORY

1.

Government policies surrounding public health practices, social distancing, return-to-work, crowd limits, and other pandemic-related
regulations and protocols may significantly impact the performance of our business

Macroeconomic

2.

Market conditions imposed by and in response to COVID-19 and emerging variants, including shifts in consumer behavior to digital
channels, may continue to impact customer demand for our core products and services

Strategic

3.

Shifts in perspectives and expectations about social issues and priorities surrounding diversity, equity and inclusion are occurring faster
than the pace at which our organization is motivated and able to manage effectively (e.g., recruiting, retention, career advancement,
reward systems, behavioral incentives, shared values and culture), which may significantly impact our ability to attract/retain talent and
compete in the marketplace

Macroeconomic

4.

Ongoing demands on or expectations of a significant portion of our workforce to “work remotely” or increased expectations for a
transformed, collaborative hybrid work environment may negatively impact the effectiveness and efficiency of how we operate our
business

Operational

5.

Uncertainty surrounding our organization’s core supply chain including the viability of key suppliers, scarcity of supplies, volatile shipping
and delivery options, or stable prices in the supply chain ecosystem may make it difficult to deliver our products or services at acceptable
margins

Operational

6.

Resistance to change in our culture may restrict our organization from making necessary adjustments to the business model and core
operations

Operational

7.

Our organization may not be sufficiently resilient and/or agile to manage an unexpected crisis significantly impacting our reputation

Strategic

8.

Our organization may not be able to adapt its business model to embrace the evolving “new normal” imposed on our business by the
ongoing pandemic and emerging social change

Strategic

9.

Our organization’s culture may not sufficiently encourage the timely identification and escalation of risk issues and market opportunities
that have the potential to significantly affect our core operations and achievement of strategic objectives

Operational

10.

Ease of entrance of new competitors into the industry and marketplace or other significant changes in the competitive environment (such
as major market concentrations due to M&A activity) may threaten our market share

Strategic