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Hindustan Times
6 days ago
- Business
- Hindustan Times
What keeps the C-suite awake at night
In today's volatile and high-stakes world, Indian business leaders are not just strategists or growth enablers they are risk managers at heart. Their biggest challenge? Navigating a landscape where risks have become increasingly complex, interconnected, and catastrophic in consequence. From cyber breaches that can wipe out decades of customer trust to climate events that physically damage core infrastructure, the modern C-suite is dealing with an expanding risk spectrum. Cyber era (Shutterstock (PIC FOR REPRESENTATION)) At a time when risks are more visible than ever, this is a timely opportunity for reflection and decisive action to assess whether Indian enterprises are adequately equipped to withstand this onslaught. Insurance is no longer just a regulatory requirement it is a strategic asset. And yet, there are significant gaps in how risk is understood, managed, and transferred in corporate India. The World Economic Forum's Global Risks Report, to which Marsh McLennan is a strategic contributor to, has consistently highlighted three interlinked threats that demand urgent attention from Indian businesses: Cyber, climate, and catastrophe. Let's start with cyber. In an era of accelerated digitisation, businesses are collecting more data, operating on cloud-based systems, and engaging with third-party digital partners and while this creates immense operational value, it also creates new risks. Unfortunately, cyber insurance adoption in India is still in the earlier stages for many businesses, and the reality is that many firms lack adequate coverage and at times clarity about policy terms and exclusions, which can leave their business operations vulnerable. On the climate front, India is one of the most climate-vulnerable countries in the world. Extreme weather events such as floods, droughts, heatwaves, and cyclones are intensifying, yet few companies have embedded climate risk into their insurance planning. Most still rely on traditional property and casualty policies, which may not respond effectively to climate-induced business interruptions or supply chain failures. This is where parametric insurance, which pays out based on predetermined triggers like rainfall levels or temperature, is increasingly being seen as a strategic tool. And then comes catastrophe, both natural and man-made. From industrial accidents and fires to geopolitical shocks and cross-border supply chain disruptions, catastrophic events are becoming more frequent and less predictable. Leaders must consider not only their direct exposures but also the systemic vulnerabilities that ripple across sectors and geographies. The truth is, many Indian companies are still approaching insurance as a static purchase decision, or as an annual renewal exercise, largely driven by cost rather than coverage or strategic alignment. This mindset needs to change. Risk today is dynamic and so must be the insurance response. Businesses need a more integrated approach that links enterprise risk management with risk financing. This means understanding the full spectrum of insurable and uninsurable risks, building tailored coverage portfolios, stress-testing risk models, and periodically recalibrating insurance strategies to reflect evolving exposures. Additionally, there's a growing need for leaders to look beyond traditional indemnity products and explore innovative solutions such as business interruption covers, trade credit insurance, and directors and officers' liability (D&O) policies — all of which are becoming essential in boardroom conversations. This is where trusted risk advisors make a critical difference. The role of the insurance broker has evolved from being a transactional intermediary to that of a strategic risk partner. Today, risk advisors are not only helping companies place insurance, they are working alongside leadership teams to measure exposures, model loss scenarios, and mitigate vulnerabilities before they escalate. The goal is to help organisations shift from hindsight to foresight. By leveraging data analytics, sector-specific benchmarking, and scenario planning, advisors enable businesses to anticipate emerging risks and structure resilient, fit-for-purpose insurance programmes. Whether it's helping a manufacturer prepare for cyber intrusions or guiding a logistics firm through climate-sensitive regions, the focus is on proactive planning to strengthen enterprise resilience. As India strides toward becoming a $ 5 trillion economy, we must also become a more insured economy. Insurance is a vital pillar of financial resilience, economic continuity, and investor confidence. The C-suite is awake to the reality that disruption is the new normal. The question is, are we insuring wisely enough to stay ahead of it? This article is authored by Sanjay Kedia, chief executive officer, Marsh McLennan India, president & CEO, Marsh India.
IOL News
14-05-2025
- Politics
- IOL News
Truth in climate action and the energy transition: countering climate denialism and misinformation
Recent research has shown a dramatic rise in disinformation related to the climate crisis, spreading at an alarming rate through social media, messaging apps, and generative AI. Image: Timothy Bernard Independent Newspapers As the risks of climate change become increasingly evident worldwide, the need for reliable and accurate information is more crucial than ever. The World Economic Forum's Global Risks Report (2024) identifies misinformation and disinformation on all topics as a short-term risk to human society amongst others the issue of climate change and the notion of the green economy revolution as such targeted topics. Recent research has shown a dramatic rise in disinformation related to the climate crisis, spreading at an alarming rate through social media, messaging apps, and generative AI. Evident in South Africa's just transition journey, the spread of misinformation distorts public debate, weaken policy consensus and scientific consensus around climate change, its consequences, and causes, consequently obstructing the various actors' ability to respond with agility and effectively to the crisis. For example, by distorting the realities of decarbonisation—whether by downplaying potential or growth of renewable energy or by understating the health impacts of coal fired power stations—misinformation creates confusion. The United Nations Secretary-General António Guterres stresses the urgency of combating 'coordinated disinformation campaigns impeding global progress on climate change''. Hence the UN and UNESCO launched the Global Initiative for Information Integrity on Climate Change at the G20 Leaders' Summit in Brazil in 2024 with the aim to promote information integrity on climate change, address disinformation, and enhance climate change awareness and action. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad Loading As the public conversation on climate change evolves, so does the sophistication and range of arguments used to downplay or mortgage the need for action. These arguments have evolved from outright denial of the reality or human causation of climate change and ad hominem attacks on scientists and the scientific consensus. These discourses accept the existence of climate change but justify inaction or inadequate efforts, for example by manipulating discussions on what actions should be taken, by whom and how fast, proponents of climate delay would argue for minimal action or action taken by others, and have found a new lease of life emboldened by others, and also the geo-political landscape changes. They focus attention on the negative social effects of climate policies and raise doubt that mitigation is possible. The aim is to manipulate discussions on what action should be taken, the speed of action taken, who bears responsibility and where costs and benefits should be allocated. These strategies have become known as 'climate delay' discourses aimed at creating deadlock or a sense of intractable obstacles to taking action. In the same way, these are sharpened through sophisticated public relations strategies like corporate greenwashing as basic as nature-rinsing imagery, green colour schemes to create a perception of environmental stewardship to vague statements with little detail or evidence on sustainability targets or past performance. Another concept has been socio-environmentalism, in particular cherry-picking small projects with a low impact compared to the companies' revenue and environmental impact. The oldest trick in the book has been companies professing to be part of the solution through non-transformative and miniscule initiatives such as recycling, water saving, reforestation and biofuels or when agribusinesses narrates their contribution and role in feeding the world, while fossil fuel companies position themselves as essential to growing energy demand worldwide, as well as key investors the clean energy transition. The media plays a pivotal role in shaping public understanding, policy debates, and stakeholder actions around both climate change and the broader concept of a just transition. Timely, accurate reporting on these events—and on South Africa's innovative pilot projects—can galvanise public support for policies that buffer communities against future shocks, while creating new economic opportunities. To move the needle on public attitudes, journalists must go beyond simply reporting data. We also need various perspectives that unpack the intersection of climate justice with race, gender, and class. Investigative reporting can expose the hidden costs of continued fossil fuel economy dependency—be it public-health burdens or environmental degradation. Last week we celebrated World Press Freedom Day with a focus on the profound influence of Artificial Intelligence (AI) on journalism and media under the theme: Reporting in the Brave New World – The Impact of Artificial Intelligence on Press Freedom and the Media. To commemorate World Press Freedom Day, we ask our media to make a pledge to defend the reality as fiercely as they defend free speech and to resist the corporate capture and weaponisation of the business and financial journalism against climate action. In a brave new way, this pledge must envision an information ecosystem that enables the media to deliver choice and freedom for all, in which people everywhere can express themselves and make informed decisions about the future they want – This transfer of power from the media to the people through improved climate reporting will empower workers and communities, and thus handing them greater control and share of voice in the discourse- which will be the fourth estate's greatest contribution towards climate action. Blessing Manale. Image: Supplied. Blessing Manale, Executive Manager: Consensus Building, Communications & Outreach. Visit: BUSINESS REPORT
Mint
06-05-2025
- Climate
- Mint
Businesses need resilience in the face of environmental uncertainty
The India Meteorological Department, while defending its failure to forecast the severity of last week's storm in Delhi, explained the difficulty of predicting sudden and extreme changes resulting from the interaction of multiple weather systems from different directions. It emphasized the need for much denser weather monitoring systems and greater sophistication in analytical capabilities to make forecasts at relevant geographical scales and within appropriate time spans for action to be taken in advance. Understandably, assessing the local impact of climate change is a critical challenge for industry, agriculture and everyone else. However, climatic changes are not waiting for India's capacities to develop. The World Meteorological Organization's State of the Global Climate Report released in March highlights record increases in temperatures and carbon dioxide concentrations in the atmosphere, apart from unprecedented sea levels, that translate to a multitude of extreme weather events which afflict us with increased frequency and intensity. The World Economic Forum (WEF), in its 2025 Global Risks Report , places extreme weather events as the second-greatest risk in a two-year time frame; in its 10-year time frame, this moves to the first position, with the top four risks all related to the environment, reflecting perceptions of rapidly depleting environmental and natural resources. Interestingly, both the Global Risks Report and the much broader Edelman Trust Barometer focus on a generational divide. While in the former, the younger generation was found to be significantly more concerned about environmental risks, a hard-hitting finding in the latter report suggests that more than four-fifths of the survey's respondents in the developed world believe that the next generation will be worse off. This number drops to less than 40% on a global average (the figure for India is 66%), but the survey still presents quite a pessimistic view on the whole. The Trust Barometer also highlights the fact that the majority of its survey respondents hold high to moderate grievances against governments, businesses and the rich, signalling a growing sense of societal polarization—a risk identified among the top 10 risks by the WEF for the short- as well as long-term. Respondents with the most grievances also believe that businesses are not going far enough to address societal challenges, in particular affordability and climate change. About 70% of the respondents said they believe that CEOs should address a problem if their business has contributed to the problem and/or if the issue harms customers, employees and/or the community. Against this environmentally and socially volatile backdrop, businesses are faced with a triple whammy. One , they too are functioning in a highly unstable and uncertain climate-impacted world, with disrupted supply chains and resources that are either depleting or becoming inaccessible; two , they are operating without a clear, firm and globally consistent policy framework; and three , the societal licence they have for their operations is increasingly difficult to come by. The risks and uncertainty they face are compounded by what their stakeholders are grappling with. Their response so far has been inadequate, as evident from the sharp decline in trust that people place in businesses. Also challenging is an erosion of employee trust within organizations that their employers would 'do the right thing.' So, how should businesses respond? Under uncertainty, one would typically call for the development of alternate scenarios that would offer various solutions to choose from. However, with uncertainty across the inter-connected spectrum of geopolitics, climate change, social challenges and technology disruptions, such scenario exercises at a business level lose their relevance. Businesses may find it more useful to reflect on the resilience they need to build: First is the question of whether their focus is on the short- or long-term. The actions needed for these time scales would be very different. They must also assess which of the destabilizing factors and the responses needed are of a limited duration. This is obviously not an easy question. In the current situation, many would believe that a new world order is likely to emerge, the shape of which is difficult to predict and the rules for whose functioning would take some time to evolve. It is a question that may require businesses to hedge their bets. More certain and increasingly urgent are the environmental risks identified by the WEF. Juxtapose this with what the Trust Barometer reveals of perceived CEO responsibilities, whether primary or secondary, and it's clear that businesses should urgently start evaluating strategic opportunities to minimize risks. Tackling environmental risks requires a robust and conducive policy framework to be put in place. This places the onus on industry associations to extend their cooperative lobbying with governments to include environmental and social challenges. Last is the opportunity arising from preparedness. Businesses have been notoriously poor in stakeholder engagement—both external and internal—although this aspect is critical for them to deliver the benefits of preparedness. Internally, agility requires that employees—whose trust must be won—are fully informed of the leadership's thinking on likely action pathways and are prepared to play their role under dynamic conditions. Externally, businesses must generate confidence in their ability to emerge as leaders under challenging circumstances through integrity, transparency and effective communication. In general, businesses have no choice but to expect the unexpected in a world of known and unknown unknowns. They must step out of their cocoons and engage much more intensively with their environment to tackle risks and prepare for an unfamiliar future. The author is an independent expert on climate change and clean energy.
Forbes
25-04-2025
- Business
- Forbes
Today's Most Crucial Leadership Skill Is Systems Thinking
Map the system In the face of global uncertainty, how are top executives and board members delivering genuine insights for their organisations? The answer is systems thinking: arguably the most crucial skill in today's strategy toolkit. As geopolitical tensions, technological change, and economic shifts move quickly and unpredictably, understanding how your business relates to a web of interconnected systems is essential for decision-making. Systems thinking enables leaders to see beyond isolated events and identify the underlying patterns and feedback loops that drive outcomes. It is, in essence, a framework for navigating complexity. At its core, systems thinking is an approach to strategy that focuses on shifting the conditions holding a problem in place. Recent examples of such 'problems' include fragility in global supply chains, challenges with governance of AI and technology, widespread mental health complications affecting employment, and intensified environmental strain ranging from water scarcity to pollution. Each of these problems impacts business and is impacted by business in turn. However, it is not always clear how a firm should direct its resources towards mitigating risk from such challenges, let alone seeking to resolve them. Systems thinking enables leaders to recognize the dynamic relationships within and around their organization, focusing on root causes rather than symptoms. The concept, developed by systems theorists including Donella Meadows, provides practical tools for mapping the complex systems that affect your organization's sustainability and success. This holistic approach enables leaders to anticipate unintended outcomes and identify smart leverage points on which their organizations can focus resources. In today's volatile, uncertain, complex, and ambiguous (VUCA) world, the need for systems thinking is more pressing than ever. Businesses that fail to account for the broader context of their environment find themselves blindsided by change and fail to capture significant opportunities for sustainable value creation. Global risk reports highlight the unpredictability of today's political, economic, and environmental landscapes. The World Economic Forum's Global Risks Report consistently underscores the interconnectedness of risks, including cyber threats, political instability, and diminished trust in institutions. The 2025 report not only presents global risks in the familiar form of a ranked list to which leaders have become accustomed, but also as a visually compelling map depicting the connection between risks. This change – from a list-based view of outcomes to a focus on their strategic links – epitomizes the mindset shift that makes systems thinking a powerful tool for strategy. Systems are 'a set of things… interconnected in such a way that they produce their own pattern of behaviour over time'. This is a core insight of systems thinking: systems, by definition, have emergent properties that no one within the system designs or even anticipates. For this reason, it is essential to approach systems challenges with tools that equip your organization to understand how the outcomes your business observes are generated at the systems level. Without systems thinking, interconnected challenges can overwhelm leaders and organizations, leading to reactive and ineffective responses, and even responses that perpetuate the problem. Working with resources such as the open-source Omidyar Systems Practice Workbook or Meadows' iconic Thinking in Systems: A Primer, you and your teams can become confident in your ability to lead effectively and navigate complexity through a systems-based lens. While systems thinking offers a wide range of approaches and methodologies, five core pillars of systems thinking are: The ability to think systemically is no longer a nice-to-have for leaders. It is a crucial capability for leading a sustainable, credible business in today's unpredictable world. Systems thinking has a home in the curriculum of every business school. With the interconnectedness of global risks, leaders who embrace systems thinking will not only understand how their company operates within the broader system but also be able to anticipate change and lead their industries. Systems thinking tools, including good problem statements, comprehensive stakeholder mapping, smart iceberg analysis, and well-designed causal loops, are gold dust for strategy in today's world. But the most important contribution of systems thinking – the ability to see the context in which your organization sits – is the true distinctive that will enable you to lead for sustainable growth in an uncertain future.
