“The Horizon Watch Emerging Risk Report highlights a significant preparedness gap among businesses when it comes to assessing geopolitical risks. While organizations increasingly recognize the disruptive impact of global conflicts and economic volatility, many still lack structured mechanisms to evaluate and mitigate these risks. As the global risk landscape becomes more complex, businesses will need to adopt proactive risk management strategies and strengthen resilience across their supply chains and operations.” Deepak Sankar, Head Commercial Business Distribution, TATA AIG General Insurance Company Limited.
Recent geopolitical developments in the Middle East, including heightened tensions involving the United States and Iran in early 2026, have exacerbated the vulnerability of global supply chains and business operations to geopolitical shocks. According to Horizon Watch Emerging Risk Report, a collaborative research by TATA AIG General Insurance Company and Dun and Bradstreet India, notes that 63% of businesses expect international conflicts to significantly disrupt their operations, however only 19% currently conduct regular geopolitical risk assessments.
These episodes highlight how rapidly evolving geopolitical conditions can create operational and financial uncertainties for businesses worldwide, reinforcing the need for stronger risk preparedness. For Indian businesses with globally integrated supply chains, escalating tensions across key maritime routes such as the Strait of Hormuz and Red Sea corridor are translating into higher freight costs, delayed shipments and sharp input price volatility threatening both margins and business continuity.
The report is based on a detailed survey conducted among 300 Indian business leaders across 25 sectors, including IT & ITeS, Chemicals & Pharmaceuticals, Auto & Auto-ancillary and Financial Services among others.
Supply chain disruption also remains a pressing issue, with over 60% of respondents highlighting logistics and transportation challenges as a major hurdle. Financial instability is also emerging as a risk area, with 48% of businesses worried about economic downturns, rising interest rates and inflation, leading organizations to place greater emphasis on liquidity planning and stronger risk management frameworks.
With the risk landscape becoming more complex due to geopolitical conflicts, technological disruptions, legal challenges and regulatory shifts, organizations that actively monitor these developments are pulling ahead. These businesses are more likely to implement proactive strategies such as supplier diversification, geopolitical scenario planning and insurance-backed risk transfer, turning uncertainty into a competitive advantage.
The Horizon Watch Emerging Risk Report highlights a significant preparedness gap among businesses when it comes to assessing geopolitical risks. While organizations increasingly recognize the disruptive impact of global conflicts and economic volatility, many still lack structured mechanisms to evaluate and mitigate these risks. As the global risk landscape becomes more complex, businesses will need to adopt proactive risk management strategies and strengthen resilience across their supply chains and operations. At TATA AIG, we believe that integrating risk intelligence with comprehensive insurance solutions will play a critical role in helping organizations navigate emerging uncertainties and safeguard long-term business continuity, said Deepak Sankar, Head Commercial Business Distribution, TATA AIG General Insurance Company Limited.
This serves as a clear message for Indian businesses to move beyond reactive approaches and embed structured risk intelligence into their core strategy. With the right combination of proactive planning, supply chain diversification and insurance-backed risk transfer, businesses can transform vulnerability into preparedness and uncertainty into long-term competitive strength.
