ICICI Lombard

Corporate
India Risk Index

A unified, standardised corporate risk index that spans across industries & companies in India.

Understanding Corporate Risk

Risk has traditionally been seen as something to be avoided – with the belief that if behavior is risky, it’s not something a business should pursue. But the very nature of business is to take risks to attain growth. Risk can be a creator of value and can play a unique role in driving business performance, and so strategies for corporate risk management must be developed to help guide the business as it decides which risks to take.

Intelligent Risk-taking is a Winner’s Strategy!

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Challenges in Measuring Corporate Risk

Corporate risk comprises of various aspects of the business – spanning customer, competition, regulatory environment, business operations, technology, finances, environmental factors, etc. The impact of unplanned events which don’t have any precedence is significantly higher – accentuated furthermore because of the highly inter-connected nature of business today.

While there are varied scales and measurement techniques for individual risk elements that affect any corporate – e.g. rainfall, credit risk, earthquakes, quality, employee turnover, etc.; there is no credible, unified scale that measures corporate risk comprehensively – something that can be used as a yard-stick for corporate risk across companies, sectors and nations.

Introducing ICICI Lombard Corporate India Risk Index

ICICI Lombard Corporate India Risk Index is the first ever unified, credible, standardised Corporate Risk Index that spans over the country level, the industry level and the company level.

This comprehensive index, developed in conjunction with our intelligence partners, Frost & Sullivan, evaluates the risk awareness, probability, criticality and preparedness of corporates across multiple sectors in India.

It will help the companies understand the level of risk that their business is facing and assist them in developing a successful risk aversion plan.

Please send a mail to ciri@icicilombard.com to know more about the ICICI Lombard Corporate India Risk Index.

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The Methodology behind the Corporate India Risk Index

ICICI Lombard Corporate Risk Index is based on the principles of Lean and Six Sigma that qualify business processes by measuring Effectiveness and Efficiency.

Corporate Risk Index score measures the risk mitigation practices undertaken by a company relative to its Risk Exposure.

The ICICI Lombard Corporate India risk Index 2023 is based on published business performance reports, assessments, and insightful discussions with key executives of 220 companies in India across the key 20 sectors.

View methodology chart

The Methodology behind the Corporate India Risk Index

The ICICI Lombard Corporate India Risk Framework is a comprehensive framework that draws upon global risk management best practices and comprises of 32 risk elements across 6 broad dimensions.

Market & Economy
  • Inflation
  • Taxation
  • Regulatory risks
  • Foreign exchange risks
  • Geo political risks
  • Competitive riskes
Technology
  • Disruptive technology
  • Intellectual property
  • RData compromise
  • Counterfeiting
  • R&D / Innovation failure
  • Infringement / Violation
Crime and Security
  • Cybercrimes
  • Counterfeiting
  • Harassment / Bribing
  • Executive threat / Impresonation
  • Physical violence / Abuse
Operational and Physical
  • Physical violence / Abuse
  • Strikes / Closure / Unrest
  • Supply Chain Risks
  • Environmental Risks
  • Terrorism & Insurgency Risks
  • Equipment Malfunction
Natural hazards & Events
  • Natural Hazards like flood, drought, famine, earthquake, landslide, etc.
  • Strikes / Closure / Unrest
  • Pandemic (e.g. COVID)
Strategic Risks
  • Resources scarcity and/or misutilization
  • Public sentiment
  • Failed/Hostile M&A

The Methodology behind the Corporate India Risk Index

The Risk Framework measured across 4 parameters spanning exposure and management

Risk Management Risk Management

Evaluation parameters
  • Awareness
  • Probability

Risk Management Risk Exposure

Evaluation parameters
  • Criticality
  • Preparendness

Corporate India Risk Index 2023

64Average of sector risk indices
  • Risk Exposure64
  • Risk Management 67
(Distributed in a scale of 1 - 100)

The ICICI Lombard Corporate India risk Index 2023

Sector scores at a glance

Sectors

  • Aerospace&Defence Sector
  • Agriculture&FoodProcessing
  • Automotive & Ancillary
  • BFSI
  • Biotech & Lifesciences
  • Chemicals & Petrochemicals
  • Education-Sector
  • Energy Sector
  • FMCG Sector
  • Healthcare Delivery
  • Infra & Realty
  • ITITES
  • Manufacturing Sector
  • Media & Gaming
  • Metal&Mining
  • New Age & Startup
  • Pharmaceuticals
  • Telecom and Communication
  • Tourism & Hospitality Sector
  • Transportation & Logistics

Risk Exposure

  • 62
  • 64
  • 67
  • 64
  • 63
  • 61
  • 63
  • 67
  • 71
  • 66
  • 67
  • 62
  • 72
  • 60
  • 59
  • 63
  • 65
  • 64
  • 63
  • 59

Risk Management

  • 64
  • 66
  • 71
  • 67
  • 64
  • 61
  • 65
  • 69
  • 75
  • 69
  • 68
  • 64
  • 75
  • 63
  • 61
  • 66
  • 70
  • 69
  • 66
  • 61

Risk Index

  • 61
  • 63
  • 68
  • 64
  • 60
  • 56
  • 61
  • 63
  • 66
  • 66
  • 60
  • 61
  • 67
  • 66
  • 63
  • 66
  • 71
  • 72
  • 65
  • 63

The ICICI Lombard Corporate India risk Index 2023

Sector scores at a glance

Risk Exposure Risk Management Risk Index
Aerospace & Defence Sector 
62 64 61
Agriculture & Food Processing 
64 66 63
Automotive & Ancillary 
67 71 68
BFSI 
64 67 64
Biotech & Lifesciences 
63 64 60
Chemicals & Petrochemicals 
61 61 56
Education skill development
63 65 61
Energy Sector
67 69 63
FMCG Sector
71 75 66
Healthcare Delivery 
66 69 66
Infra & Realty 
67 68 60
IT/ITES
62 64 61
Manufacturing Sector
72 75 67
Media & Gaming 
60 63 66
Metals & Mining 
59 61 63
New Age & startup 
63 66 66
Pharmaceuticals
65 70 71
Telecom & Communication
64 69 72
Tourism & Hospitality Sector 
63 66 65
Transportation & Logistics
59 61 63

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