Day in and day out, businesses in India have to deal with numerous corruption-related risks. A majority of these are in the form of theft of physical assets and information, bribery, and internal financial frauds. This trend, combined with a stringent regulatory and enforcement environment, has brought risk management to the fore. It is not a choice anymore, but a necessity. Neville Dumasia, National Leader, Risk Advisory Services, India, EY discusses ways to leverage internal control to tackle corruption.
In Conversation with Deepak Satwalekar
Deepak Satwalekar retired as the Managing Director and Chief Executive Officer (MD & CEO) of HDFC Standard Life Insurance Company Ltd. Prior to that,he was the Managing Director of HDFC,the country’s largest mortgage lender. In addition, Mr.Satwalekar has been a consultant to the World Bank,the Asian Development Bank and other bilateral and multilateral agencies and has worked in several countries. He also serves as an independent director on the boards of some large companies in India. In a recent interaction with Neville Dumasia, Partner and National Leader, Risk Advisory Services for EY, Mr. Satwalekar shares his perspective on a broad range of issues impacting today’s boards.
Neville Dumasia (ND): What are the most critical challenges facing audit committee members today and what do you see as the most effective approach to addressing these?
In India, the archaic Companies Act, 1956 was in direct need of a complete revamp especially after a string of high profile scams in the Corporate World. Indian Government, realising the need for a better and comprehensive governance policy for businesses in India that has some global prominence approved the Companies Act, 2013 with the approval of the Indian Parliament and the Executive. In this post read about how Companies Act, 2013 strikes the right chord with prevalent issues in business administration and brings in sweeping changes in the way Companies are governed in India.