A recent KPMG International report shows that 70% of business leaders worldwide, including a significant representation from India, have experienced increased risk exposure over the last two years. The study identifies technology and artificial intelligence disruption as the foremost concerns impacting business operations over the next two years, alongside geopolitical tensions and macroeconomic uncertainty.
- 70% of global leaders report rising organizational risk exposure in recent years.
- 64% identify AI and technology disruption as top risks for the next two years.
- Only 28% prioritize energy security as a strategic leadership focus despite growing threats.
What happened
KPMG International's report based on a global survey of 109 senior executives, including those from India, reveals that corporate risk exposure has significantly increased amidst the rapid advance of AI and technology disruptions. The study highlights that 56% of business leaders expect external shocks — such as geopolitical conflicts, energy shortages, cyberattacks, and climate risks — to severely disrupt operations or increase costs over the next three to five years.
The findings were presented at the 17th ENRich conclave in India and also highlight major vulnerabilities in supply chain stages most exposed to technology and digital dependencies, delivered costs, and logistics. The report underscores how interconnected shocks, such as maritime route disruptions and geopolitical tensions, create ripple effects across global value chains, making traditional risk mitigation less effective.
Why it matters
This report signals a pivotal shift in how Indian and global companies must approach risk management, moving supply chain resilience from a functional concern to a board-level strategic imperative. The growing convergence of technology-related risks alongside geopolitical and climate-related threats challenges longstanding assumptions about supply chain design and operational stability.
Anish De of KPMG International emphasizes the urgency for companies to embed resilience deeply within their corporate governance and enterprise strategies. The report notes that while many organizations are adopting advanced tools like AI-driven predictive analytics and scenario planning to counteract disruptions, strategic coordination on energy security and interconnected risks remains insufficiently prioritized by senior leadership.
What to watch next
Businesses in India and globally will likely accelerate investments in AI and digital tools to forecast and mitigate supply chain shocks, expanding the role of advanced analytics and stress testing in risk management. There will also be growing attention on alternative sourcing strategies and diversified supplier networks to avoid dependencies on critical chokepoints such as major maritime shipping routes.
However, stakeholders should monitor how effectively energy security and climate resilience get elevated to strategic decision-making forums, given only a minority of executives currently prioritize these areas. With geopolitical tensions and technological disruptions intensifying, continuous assessment of risk interdependencies and collaborative approaches across industries and governments will be essential to sustaining operational stability.