Geopolitical instability has emerged as the most significant future risk for India Inc, with nearly 50 per cent of corporate leaders identifying it as their biggest threat over the next five years, according to the Global Risk Atlas – New Realities by MGC Global Risk Advisory.
The analysis, covering 45 economies across five regions, highlights a growing consensus among Indian businesses that volatility will remain persistent rather than episodic. Around 70 per cent of CXOs expect steady disruption across multiple risk categories, signalling a fundamental shift in how companies plan for uncertainty.
Based on insights from more than 125 CXOs across manufacturing, services, BFSI, digital, consumer and infrastructure sectors, the report assesses enterprise risk across cybersecurity maturity, ESG transition, policy predictability, supply-chain resilience, risk preparedness and workforce transformation. It underscores the need for boards to move beyond crisis-led responses towards structured risk governance and long-term resilience.
Geopolitics stands out as the most concentrated risk for multinational companies, manufacturers and B2B firms exposed to cross-border capital flows, energy security and global supply chains. Domestic enterprises face indirect impacts through currency volatility, commodity price swings and demand fluctuations, reinforcing the systemic nature of global geopolitical shocks.
The Atlas also points to a major shift in boardroom priorities, with AI governance overtaking ESG as a critical focus area. Concerns around data integrity, regulatory uncertainty, misinformation and algorithmic bias have pushed artificial intelligence from an operational issue to a governance imperative.
Cybersecurity has become a dominant board-level concern, with 59 per cent of respondents identifying cyberattacks and data breaches as their most active risk area. The growing frequency and scale of digital threats have elevated cyber resilience above traditional physical security considerations.
Capability gaps remain a significant vulnerability, with nearly two-thirds of companies acknowledging weaknesses in digital readiness, innovation capacity and future workforce skills. While governance and oversight frameworks have improved, uneven capability maturity could amplify external shocks in an increasingly volatile global environment.
At the global level, business leaders view trade and investment agreements as the most important enablers of future cooperation, ahead of political or military alliances. Europe and North America are perceived as the most exposed regions due to policy uncertainty, regulatory pressures and energy-related risks.
The Global Risk Atlas positions resilience, foresight and digital preparedness as decisive factors for business continuity and competitiveness, as India Inc navigates an era of interconnected and persistent global risks.
