How a Culture of Integrity Can Improve Regulatory Compliance and Strengthen Cyber Defenses
Importance of having a resilient ESG strategy
ESG compliance has moved up the priority list on organizations’ boardroom agendas. Over the past two years, the regulatory landscape has undergone a major shift. The implementation of SEBI’s mandate for listed companies to include BRSR in their annual stock exchange reports from April 1 signals the regulator’s commitment to formal implementation of ESG programs. SEBI requires companies to not only identify ESG risks, but also detail their mitigation strategy and contingency plans.
The coming year will see increased scrutiny and tougher enforcement action against companies that fail to comply with these standardized and comprehensive disclosure requirements. Instances of misconduct are likely to be brought to light through whistleblower complaints, leading to an assessment and the pursuit of advice to take corrective action and stay the course.
New age frauds will continue to challenge organizations
Cybercrimes are at an all-time high around the world, with cybercriminals devising new ways to deceive organizations over tangible and intangible assets. The coming year will see a further proliferation of cyber risks, including transactions where cryptocurrency is involved. Non-fungible tokens are another area that will be targeted given the exclusivity of these priceless digital assets. To mitigate new-age fraud in an increasingly digital age, there should be strong technology protections with multiple firewalls and layers of security as well as protected work profiles to minimize email compromise. professionals. Implementing data loss prevention solutions can be a proactive step to avoid possible breaches.
Increased awareness of dispute resolution in the infrastructure sector and competition law
With growth opportunities galore and an influx of investment, the sky is the limit when it comes to the infrastructure sector. However, the inherent nature of the business with its complex engineering projects, long project life cycles, differences between planned and actual scenarios, delays in approvals, land acquisition, etc., as well that disputes, claims and potential litigation can be major hurdles. One of the imperatives this year would be to make the right changes not only to the structure of contracts, but also to reforms of legal frameworks to avoid stifling any opportunity for growth in this period of rapid infrastructure development.
Recent enforcement actions by the Competition Commission of India (CCI) make it crucial for management as well as employees to avoid anti-competitive behavior. Issues such as pricing, bid-rigging, antitrust risks, supply chain relationships, fines and penalties need to be explained to employees at all levels. Raising employee awareness of relevant laws and regulations will also improve the governance framework in which employees can report or raise concerns in the event of violations or non-compliance.