New Delhi, [India] December 13 : Geopolitical instability has emerged as the biggest future risk for India Inc., with nearly 50 per cent of CXOs ranking it as the most severe threat over the next five years, according to a report, 'The Global Risk Atlas - New Realities' by MGC Global Risk Advisory.
The report, based on insights from over 125 CXOs across 45 economies spanning five regions with sectors including manufacturing, services, BFSI, digital, consumer and infrastructure, found that 70 per cent of business leaders expect "steady volatility" across six of nine major risk categories, while 59 per cent identified cyberattacks and data breaches as a top board-level concern.
The Atlas also noted that AI governance has overtaken ESG as a key boardroom priority, driven by concerns around model bias, misinformation and regulatory uncertainty. Nearly two-thirds of companies acknowledged significant gaps in talent, innovation and digital capabilities, which could amplify future shocks.
Monish Gaurav Chatrath, Managing Partner, MGC Global Risk Advisory, said that geopolitical shifts, technological disruption and macroeconomic realignment are converging into a new global risk architecture, requiring companies to move from episodic crisis response to institutionalised resilience.
"We are at a decisive inflection point where geopolitical shifts, technological disruption and macroeconomic realignment are converging into a new risk architecture." Chatrath noted.
According to the Atlas, geopolitical risk exposure is highest for multinational companies, manufacturers and B2B firms dependent on cross-border capital, energy and supply chains, while domestic firms face indirect impacts through currency, commodity and demand channels.
The study maps evolving risk trajectories across 45 economies and highlights that Indian companies have entered an era of "permacrisis", marked by chronic and interconnected risks spanning geopolitics, macroeconomics, regulation, talent and digital disruption.
The report added that cybersecurity has overtaken physical security as the most active risk-control focus for Indian boards, reflecting the growing threat of systemic cyber incidents.
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