India Inc is taking heavier hits than global peers across core operational and financial risks

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India Inc is reporting significantly higher losses across core operational and financial risks compared to global peers, pointing to a more stressed risk environment for domestic companies, according to Aon’s Global Risk Management Survey 2025. The survey covers 2,941 organisations across 63 countries, including a dedicated India benchmark.

One of the sharpest divergences is in property damage, where 90.9% of Indian respondents said they suffered a loss linked to physical assets over the past year. This is far higher than global loss incidence for this risk category. Property damage also ranks as the No.7 current risk in India compared to No.14 globally.

The finding is particularly relevant for listed companies in manufacturing, infrastructure, power, logistics and industrials, which have seen rising claims and higher risk-engineering costs in recent years.

Indian firms also reported meaningfully higher cash-flow and liquidity losses. While cash-flow risk is the No.10 global concern, 58.3% of Indian respondents said they incurred a loss due to liquidity pressure, compared with 28.8% globally.

This signals tighter working-capital cycles for domestic companies, especially among mid-cap industrials, EPC contractors and capital-goods firms.

Another major gap appears in data privacy and compliance. In India, 64.7% of respondents reported a loss related to Data Privacy/DPDP-type compliance failures, which ranks as the fourth biggest current risk locally — much higher than the global ranking of the category.

This finding underscores the rising cost of compliance and cyber-resilience spending for BFSI, IT services and digital-facing listed companies.

Cyber-attacks remain the No.1 current risk worldwide, but the loss incidence is even higher in India at 92.9%, versus 89.2% globally.

Exchange-rate fluctuation is another area of disproportionate impact: 63.6% of Indian organisations reported FX-related losses, making it a top-10 domestic risk, unlike in the global rankings.

Beyond losses, Indian respondents also signalled a rising cost burden. 62.5% said their Total Cost of Insurable Risk (TCOR) has increased, compared with 55.8% globally, reflecting higher insurance premiums, deductibles, third-party fees and internal expenses.

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