Mumbai– According to a report released today by Marsh, the world’s leading insurance broker and risk advisor, and RIMS, the risk management society®, the continued effects of the COVID-19 pandemic and concerns about future public health crises remain top-of-mind for Indian business leaders for the second consecutive year.
The report, Excellence in Risk Management India 2021: Advancing Towards Resilience, is based on research among over 200 c-suite executives and risk professionals from India’s leading firms. Nearly one-third (30%) of respondents identified the continued effects of the COVID-19 pandemic as the most impactful short-term risk facing their organisations, followed by a prolonged recession (19%), and cyberattacks and data fraud (13%).
Notably, only 10% of respondents stated they are fully prepared for the continued fallout from COVID-19 or a new health crisis, while over half (58%) said their organisations are “not or somewhat prepared” – highlighting a worrying gap in their deeper understanding of risk preparedness and building resilience against future critical events.
Fundamentally a human crisis, 90% of respondents believe that their employees have been adversely affected by the pandemic, which in turn has had a negative impact on their supply chains and clients. In response, according to the report, many organisations have actively taken steps to safeguard both the physical and mental health and well-being of their employees.
Sanjay Kedia, Country Head and CEO, Marsh India, commented: “This research underlines the toll that a low frequency, high impact event like a pandemic can take on Indian organisations, and the importance of being sufficiently prepared to quickly respond. As interdependencies further increase, it is crucial that Indian companies develop their risk resilience. This will determine their ability to survive and thrive.”
This year’s report also points to the need for greater development and innovation around insurance solutions that cover critical and emerging risks. The majority of respondents (53%) said that the insurance products currently available in today’s market do not cover all of their organisation’s critical emerging risk needs.
“In the face of so much uncertainty, global business leaders have recentered their focus on risk management and insurance strategies to effectively prepare for future challenges and leverage new opportunities,” said RIMS President Ellen Dunkin. “Key to that preparation is having a network of professionals that is willing to share their experiences. RIMS is committed to uniting the risk management and insurance communities to facilitate this important exchange of best-practices and deliver powerful insight like that found in this Marsh, RIMS report.”