India’s risk environment: tailoring your Business Continuity Plan

In the 2024 World Risk Report by Bündnis Entwicklung Hilft and IFHV, India ranks third globally for disaster risk, underscoring its high vulnerability to hazards such as floods, cyclones, and earthquakes. While the country is poised to grow at 6.4% GDP for FY 24-25 (PIB, Govt of India), approximately 60% of the country’s land area faces medium-to-high seismic risk, and 80% of its 7,500-kilometer coastline is exposed to cyclones or tsunamis.

India is frequently subject to sudden weather- and climate-related disruptions that can damage infrastructure and business operations. These disruptions are driven by vast geography, complex climate conditions, pollution problems and dense population distribution – especially in the megacities. Repeated events have highlighted the fragility of key urban and rural systems that are closely linked to the natural ecosystem. Organisations operating in India must make a proactive, location-specific Business Continuity Plan.

The impact of recent crises

Natural disasters claimed 2,936 lives across India in 2024. The disasters, including floods and landslides, also led to damage to over 3.63 lakh houses and affected 14.24 lakh hectares of cropped land (data shared by the Indian central minister of state for home affairs in the Indian Parliament in January 2025).

Earthquakes

India is located in multiple moderate-to-high seismic zones, which, combined with high urban density, lack of earmarked assembly areas and building codes, means earthquakes are a persistent threat. Although there was no single large-scale urban earthquake in 2024–25, experts warn that even moderate earthquakes can cause extensive structural damage and pose severe challenges to business continuity.

Cyclones, floods and landslides

Cyclones striking West Bengal and Odisha in 2024 (Cyclone Remal) caused widespread damage, led to the loss of over 30 lives in West Bengal and the north-eastern parts of India, and disrupted industries ranging from agriculture and textiles to IT and retail, causing severe damage, supply chain breakdowns and workforce displacement. Similarly, floods in Assam, Andra Pradesh, as well as landslides in Kerala, led to loss of life, disruption to communication and business.

Droughts, Water Scarcity, and Heatwaves

Periodic droughts affect both northern and southern states, reducing agricultural yields and posing risks for water-intensive industries like textiles and food processing. Bengaluru, a rapidly expanding tech and business hub, faced its near “day zero” water scarcity situation in 2024 as urbanization outpaced infrastructure growth.

Business continuity plans were challenged, as many employees moved to their hometowns and organisations struggled to balance their work priorities with employee welfare. Increasingly frequent and intense heatwaves are now straining power grids and outdoor labour conditions, fueling concerns over productivity, frequent and long blackouts, and supply chain risks.

Many of these events, such as unpredictable monsoons, pollution and heatwaves have since become cyclic, posing new challenges for businesses which need to factor them in as part of their annual planning. Natural disasters are happening more often, with increased vigour and often simultaneously.

A robust Business Continuity Plan is critical

A well-designed Business Continuity Plan (BCP) helps organisations safeguard critical processes, protect employees, and recover faster when natural disaster linked disruptions occur. Effective BCPs outline key recovery priorities, communication strategies and fallback resources to minimise financial and reputational damage.

In India’s volatile risk landscape, lacking a robust BCP can lead to lengthy downtime, irrevocable losses, and diminished stakeholder confidence. Despite these stakes, many companies remain underprepared. According to Think Teal’s 2024 State of BCDR, India report, which surveyed over 220 CIOs and IT decision-makers from large Indian enterprises across diverse sectors, nearly 40% of Indian businesses lack a detailed Business Continuity and Disaster Recovery (BCDR) strategy. Almost half of the respondents review their BCDR strategies only once every three years, and about 40% reported limited expertise in managing BCDR. Lack of a formal BCP and processes to manage disruptive events can create a culture where response is prioritised over proactive planning and readiness.

From hazard-focused to resource-focused

Traditional disaster preparedness often targets a single type of threat (like an earthquake) and prioritises physical safety measures. However, crises can easily cascade beyond their initial impact, rendering hazard-specific plans too narrow. Each organisation’s context, requirements and location-specific challenges are different and demand a bespoke approach to business continuity planning.

As was witnessed during the COVID-19 pandemic, many other disruptive events continued whilst many parts of the world were already reeling under restrictions, leading to a “poly-crisis” (or a crisis within a crisis) scenario. In this context, simplistic BCPs were either ineffective or irrelevant.

A more versatile, resource-focused approach begins by identifying critical organisational assets – human resources, facilities, information systems, supply chains and external partners – and assessing potential disruptions. By tailoring strategies to protect and restore each resource category, companies can adapt more effectively to both anticipated and unforeseen events, including compound or secondary hazards that emerge after an initial crisis.

Localizing your BCP for India

For multinational and foreign-based firms operating in India, customising a global plan is crucial. Key considerations include:

1. Risk-based scenario planning: Regional and cyclical

India’s wide-ranging regional diversity and recurring environmental risks call for a dual-layered approach to scenario planning—one that addresses both location-specific hazards and cyclical disruptions.

For example:

Each industry also faces distinct vulnerabilities. A micro-fulfilment eCommerce hub will have very different continuity needs compared to a multi-storey retail chain.

To address these diverse risks, organizations should develop detailed continuity scenario plans supported by concise, actionable playbooks tailored to both geographic realities and business models.

2. Simplicity over volume

Concise, action-oriented plans – tested regularly through drills, tabletop exercises, simulations or live tests –promote clarity and ensure that busy employees who have very specific roles within their companies understand their relevant roles and responsibilities when responding to an emergency, a disruptive event or a crisis.

3. Infrastructure Contingencies

Large-scale power outages and communication failures can happen suddenly – triggered by cyclones, floods, earthquakes or landslides. Backup power, backup internet and communication tools, and clear local decision-making authority at the local level help sustain operations even when headquarters are unreachable. In extreme scenarios, organisations may need to suspend operations or evacuate employees.

4. Developing a culture of continuity

Specific initiatives, such as leadership trainings and functional briefings, help teams understand and embrace the continuity plan and adapt it for their own use. Awareness campaigns can also support organisational change and organically root the initiative.

5. Inclusive Communication

Not all frontline staff speak English or the parent organisation’s language. Multilingual updates – via text alerts or dedicated phone lines – ensure no one is left uninformed in an emergency. Having a copy of the instructions to be followed during an emergency in the local vernacular also helps during the incident and the emergency response phase.

6. Community coordination

Collaborating with embassies, local industry focus groups and neighborhood associations can strengthen crisis response. Offering resources – like spare vehicles or facility space – builds goodwill and can accelerate area-wide recovery. Such collaboration also helps highlight common issues to government and civic bodies under a common umbrella for a faster resolution. Over time, mutual coordination and collaboration can prove invaluable during location-specific crisis situations.

Moving forward

Indian businesses now recognise the need for clear business continuity and climate change mitigation plans aligned with government disaster management programmes. A strong culture of preparedness – what UNESCO calls a “real and long-lasting culture of prevention" – reduces disruptions and shortens recovery time.

Given India’s exposure to natural hazards and global disruptions, resilient, regularly tested BCPs tailored to local realities are essential. Shifting from hazard-specific planning to resource-focused strategies enhances flexibility. Thorough risk assessments, inclusive communication, and community engagement help protect employees, minimise downtime, and ensure business continuity. In India’s fast-growing yet risk-prone market, a strong BCP safeguards competitiveness and long-term resilience.