Latest news with #RiskIndex
&w=3840&q=100)
Business Standard
08-05-2025
- Business
- Business Standard
BFSI's risk index rise amid global economic stability, says CIRI report
The overall Risk Index of the Banking, Financial Services and Insurance (BFSI) sector in India increased to 66 in 2024 from 64 in 2023, according to the Corporate India Risk Index (CIRI) developed by ICICI Lombard and Frost & Sullivan. The rise is attributed to global economic instability triggered by inflation and geopolitical tensions, which posed considerable challenges to financial markets. 'Volatility in global stock markets and fluctuating interest rates created uncertainty for banks and insurance companies, compelling them to re-evaluate their risk exposure and diversify their portfolios to minimise financial losses,' the report stated. Banks also had to manage an increase in non-performing assets (NPAs), particularly in public sector banks, which required greater focus on credit risk management. Regulatory scrutiny around data privacy, cybersecurity and anti-money laundering intensified in 2024, prompting institutions to invest significantly in cybersecurity infrastructure. The introduction of tighter Know Your Customer (KYC) norms and enhanced oversight of digital lending platforms also led BFSI firms to make significant adjustments to their compliance frameworks. Competition from non-banking financial companies (NBFCs) and fintech startups intensified as these entities introduced innovative solutions tailored to niche markets and underserved segments. This has compelled traditional financial institutions to continuously innovate and prioritise financial inclusion. 'As a result, the BFSI sector accelerated its focus on financial inclusion, pushing for greater penetration in rural and semi-urban areas through digital banking services and low-cost insurance products,' the report added. The insurance segment also witnessed steady growth, fuelled by increasing awareness around health, life and general insurance. This was supported by rising disposable incomes and a shift in consumer mindset towards risk mitigation. While the overall risk index rose, the Risk Management Index of the BFSI segment dropped slightly to 66 in 2024 from 67 in 2023. This suggests that although the sector continued to implement robust mitigation strategies—such as digitalisation, improved cybersecurity and compliance—the magnitude of external risks grew more significantly. Despite these challenges, the BFSI sector's proactive risk strategies, including strengthening liquidity buffers, diversifying investment portfolios and enhancing digital infrastructure, enabled it to navigate volatility effectively. The segment also made notable advances in technology adoption, particularly in digital banking, artificial intelligence (AI) and blockchain, to improve customer experience and operational efficiency. Digital payment systems continued to expand rapidly, backed by strong government support and increased demand for contactless transactions—further propelling India's push towards a cashless economy. AI was widely adopted for fraud detection, customer support and personalised services, helping reduce operational costs while enhancing service quality.
Yahoo
16-04-2025
- Business
- Yahoo
Elon Musk ‘associated' and AI top list of biggest business risks, report finds
In an effort to tiptoe the reputational path in a highly uncertain business environment, such as the current geopolitical landscape, companies must watch out not to be associated with or criticised by Elon Musk, as these are among the top reputational risks. This is according to a new Reputation Risk Index, commissioned by public relations firm Global Situation Room, using data from crisis experts and analysis from the Global Risk Advisory Council. The council counts more than 100 members, including the likes of former CIA Director Leon Panetta and MI6 Chief Sir Richard Dearlove as well as former heads of state and CEOs. What they foresee as the biggest emerging threats to a company's reputation was sculpted into a list of 10 risks, forging a quarterly Reputation Risk Index, which promises to help enhance executives' ability to track and analyse emerging threats. Corporate reputation is most severely threatened if a company is, even loosely, associated with using artificial intelligence in a harmful or deceptive way, including creating deepfakes. This practice is often associated with spreading misinformation and manipulating public opinion. 'AI, if not understood or managed in companies, can have an incredible trickle-down effect that may not be reversible,' an unnamed Council member said, cited by the report. Related AI use poses risks to global financial system, standard-setters warn The Big Question: Can AI really add €600bn to Europe's economy by 2030? 'The use of AI continues to be the greatest risk to brands, with little restrictions and legal parameters, giving unscrupulous brands a leg up, while penalising organisations who remain diligent and cautious about its deceptive potential for misleading consumers,' the Council said in the risk report. Furthermore, the risk AI carries for reputation is expected to 'potentially increase in the years to come,' the report added. Tesla CEO Elon Musk, named the world's richest man for several years now, appears to be a less-than-welcome acquaintance; it is highly likely that the connection would trigger heightened scrutiny for a brand, according to the Risk Index. Related Tesla sales drop 13% in first quarter as Musk backlash hurts demand Tesla's European buyers turn away? Sales slide amid Musk's political controversy Musk, who also bought Twitter, then named the social media X, is seen as a controversial figure by many. It is especially so since he aligned himself with US President Donald Trump during his campaign and later became the unofficial head of DOGE. He also had very negative news coverage around the world during the first quarter of 2025. Now, nearly 30% of Council experts rated the highest risk was being linked to the businessman or publicly criticised by Musk. This rating gave him the second-highest rating on the list. Perceived backtracking on diversity, equity, and inclusion (DEI) commitments was the third top risk for brands. 'This comes as the Trump Administration continues to aggressively pursue not only universities, but also private firms for the implementation of such programs,' the report read. One in five Council members rated DEI backtracking as a severe reputational risk. The head of the Global Situation Room (GSR), which commissioned the report, said bowing to political pressure in the short term may prove to be costly. 'The Index has an unambiguous warning for CEOs: If you squander stakeholder and consumer goodwill on these issues, it won't be coming back anytime soon,' GSR President Brett Bruen said. The Council also sees this trend outside of the US, saying that 'DEI backtracking is notable in Europe.' Other issues harming corporate reputation included copying creative works, allegations of anticompetitive practices and price fixing. The reputation of a company or organisation has a sizeable impact, as Tesla's example shows. There have been a lot of attacks on the EV makers' showrooms and cars across the US and even abroad, since Musk was appointed to oversee a new Department of Government Efficiency. The share price of the company traded at $254 on 15 April, whereas it was worth $479 on 17 December, 2024. Related Trump the unifier? How Europe could benefit from Trump's policies Which European firms and industries are more vulnerable to US tariffs? In these times of uncertainty, sprinkled with tariff news every day, the Risk Index aims to give guidance for corporate decision-making in the months and years to come. 'Too often companies make decisions without fully accounting for rapidly changing social, political, and consumer realities,' Isabel Guzman, newly appointed chair of the Global Risk Advisory Council, said. She also called the current climate an 'extremely challenging marketplace and communications environment' in which 'understanding and adapting to these conditions will increasingly be critical in the coming years.' An overwhelming majority, 86% of the Global Risk Advisory Council, believe reputational risks will increase over the next quarter. As for the next few months, the Council is going to monitor reputational risks related to technology, DEI, and geopolitical uncertainties, including the shift from traditional US policies, added the report Sign in to access your portfolio
Euronews
16-04-2025
- Business
- Euronews
Elon Musk ‘associated' and AI top list of biggest business risks, report finds
ADVERTISEMENT In an effort to tiptoe the reputational path in a highly uncertain business environment, such as the current geopolitical landscape, companies must watch out not to be associated with or criticised by Elon Musk, as these are among the top reputational risks. This is according to a new Reputation Risk Index, commissioned by public relations firm Global Situation Room, using data from crisis experts and analysis from the Global Risk Advisory Council. The council counts more than 100 members, including the likes of former CIA Director Leon Panetta and MI6 Chief Sir Richard Dearlove as well as former heads of state and CEOs. What they foresee as the biggest emerging threats to a company's reputation was sculpted into a list of 10 risks, forging a quarterly Reputation Risk Index, which promises to help enhance executives' ability to track and analyse emerging threats. Misusing AI tops the list Corporate reputation is most severely threatened if a company is, even loosely, associated with using artificial intelligence in a harmful or deceptive way, including creating deepfakes. This practice is often associated with spreading misinformation and manipulating public opinion. 'AI, if not understood or managed in companies, can have an incredible trickle-down effect that may not be reversible,' an unnamed Council member said, cited by the report. Related AI use poses risks to global financial system, standard-setters warn The Big Question: Can AI really add €600bn to Europe's economy by 2030? 'The use of AI continues to be the greatest risk to brands, with little restrictions and legal parameters, giving unscrupulous brands a leg up, while penalising organisations who remain diligent and cautious about its deceptive potential for misleading consumers,' the Council said in the risk report. Furthermore, the risk AI carries for reputation is expected to 'potentially increase in the years to come,' the report added. Avoiding links to the world's richest man Tesla CEO Elon Musk, named the world's richest man for several years now, appears to be a less-than-welcome acquaintance; it is highly likely that the connection would trigger heightened scrutiny for a brand, according to the Risk Index. Related Tesla sales drop 13% in first quarter as Musk backlash hurts demand Tesla's European buyers turn away? Sales slide amid Musk's political controversy Musk, who also bought Twitter, then named the social media X, is seen as a controversial figure by many. It is especially so since he aligned himself with US President Donald Trump during his campaign and later became the unofficial head of DOGE. He also had very negative news coverage around the world during the first quarter of 2025. Now, nearly 30% of Council experts rated the highest risk was being linked to the businessman or publicly criticised by Musk. This rating gave him the second-highest rating on the list. Other top risks Perceived backtracking on diversity, equity, and inclusion (DEI) commitments was the third top risk for brands. 'This comes as the Trump Administration continues to aggressively pursue not only universities, but also private firms for the implementation of such programs,' the report read. One in five Council members rated DEI backtracking as a severe reputational risk. The head of the Global Situation Room (GSR), which commissioned the report, said bowing to political pressure in the short term may prove to be costly. 'The Index has an unambiguous warning for CEOs: If you squander stakeholder and consumer goodwill on these issues, it won't be coming back anytime soon,' GSR President Brett Bruen said. The Council also sees this trend outside of the US, saying that 'DEI backtracking is notable in Europe.' Other issues harming corporate reputation included copying creative works, allegations of anticompetitive practices and price fixing. ADVERTISEMENT Why is it important to keep an eye on emerging risks for the corporate world? The reputation of a company or organisation has a sizeable impact, as Tesla's example shows. There have been a lot of attacks on the EV makers' showrooms and cars across the US and even abroad, since Musk was appointed to oversee a new Department of Government Efficiency. The share price of the company traded at $254 on 15 April, whereas it was worth $479 on 17 December, 2024. Related Trump the unifier? How Europe could benefit from Trump's policies Which European firms and industries are more vulnerable to US tariffs? In these times of uncertainty, sprinkled with tariff news every day, the Risk Index aims to give guidance for corporate decision-making in the months and years to come. 'Too often companies make decisions without fully accounting for rapidly changing social, political, and consumer realities,' Isabel Guzman, newly appointed chair of the Global Risk Advisory Council, said. She also called the current climate an 'extremely challenging marketplace and communications environment' in which 'understanding and adapting to these conditions will increasingly be critical in the coming years.' An overwhelming majority, 86% of the Global Risk Advisory Council, believe reputational risks will increase over the next quarter. ADVERTISEMENT As for the next few months, the Council is going to monitor reputational risks related to technology, DEI, and geopolitical uncertainties, including the shift from traditional US policies, added the report
