Only 19% of Indian firms assess geopolitical risks regularly: TATA AIG–Dun & Bradstreet report
Mumbai : Amid rising global tensions, only 19% of Indian businesses conduct regular geopolitical risk assessments, even as a majority anticipate significant disruption to operations, according to a joint report by TATA AIG General Insurance Company and Dun & Bradstreet India.
The Horizon Watch Emerging Risk Report, based on a survey of 300 business leaders across 25 sectors, found that 63% of respondents expect international conflicts to materially affect their operations. Recent developments in West Asia, including heightened tensions involving the United States and Iran, have underscored the fragility of globally integrated supply chains, the report said.
Indian companies with international linkages are facing increasing pressure from disruptions along critical maritime routes such as the Strait of Hormuz and the Red Sea corridor. These have led to higher freight costs, shipment delays and volatility in input prices, affecting both margins and business continuity.
Supply chain disruption remains a key concern, with over 60% of respondents citing logistics and transportation challenges as a major issue. Financial risks are also intensifying, with 48% of businesses expressing concern over economic downturns, rising interest rates and inflation. This has prompted a greater focus on liquidity planning and risk management frameworks.
The report highlighted a widening preparedness gap, noting that while companies recognise the impact of geopolitical and economic uncertainties, many lack structured mechanisms to assess and mitigate such risks.
“Businesses that actively monitor geopolitical developments are better positioned to adopt proactive strategies such as supplier diversification, scenario planning and insurance-backed risk transfer,” said Deepak Sankar, Head, Commercial Business Distribution, TATA AIG General Insurance Company Ltd.
The report emphasised the need for organisations to move beyond reactive approaches and embed risk intelligence into core business strategies. Strengthening supply chain resilience and adopting comprehensive risk management practices would be critical to navigating an increasingly complex global environment, it added.
