Business EconomyPosted at: Dec 12 2025 4:00PM


Geopolitical uncertainty India Inc’s severe strategic risk: Report

New Delhi, Dec 12 (UNI) Geopolitical uncertainty has emerged as India Inc’s most severe strategic risk, with nearly half of business leaders ranking it above any potential risks, said ‘The Global Risk Atlas-New Realities’ released by MGC Global Advisory on Friday here.
‘India Inc’ is a popular media term for India’s formal corporate and government business sector, representing the nation's organised economy.
Launching the Atlas, Monish Gaurav Chatrath, Managing partner of MGC Global Risk Advisory and APAC Board Member, Allinial Global, said, “ We are at a decisive inflection point where geopolitical shifts, technological disruptions and macroeconomic realignments are converging into a new risk architecture. The Global Risk Atlas captures not only this structural change, but also how Indian business leaders are responding to it. It reflects a transformative shift from reacting to crises toward institutionalising resilience.”
Geopolitics stands out as the most concentrated future risk. Exposure is highest for MNCs, manufacturers and B2B enterprises reliant on cross-border capital, energy and supply chains. Domestic firms experience transmission through currency, commodity and demand channels, reinforcing the systemic nature of geopolitical shocks.
The Atlas further highlights material shifts in risk governance. Chief Experience Officers (CXOs) report that AI is no longer viewed as a technology adoption challenge but as a governance imperative, driven by concerns around model bias, misinformation, and regulatory ambiguity.
Cybersecurity has overtaken physical security, with 59 per cent indicating cyber defences as their most active risk-control mechanism, reflecting the rising threat of systemic cyber incidents.
The report also identifies capability gaps that could amplify future shocks, with two-thirds of companies acknowledging structural weakness in digital readiness, R&D depth and future workforce skills.
While governance structures and board oversight have matured, capability maturity remains uneven, which is a defining vulnerability in a volatile external landscape.
The Global Risk Atlas has been developed by MGC Global Risk Advisory using secondary research, public-domain intelligence and extensive survey-based insights.
UNI SAS KK
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