NEW DELHI, July 22, 2022 /PRNewswire/ — Companies and businesses will need to move away from traditional risk management protocols and sustainability disclosures in the post-pandemic era and develop strategic and business resilience, said Mazars Advisory LLP in a statement issued on Thursday.
The leading consulting firm said strategic resilience would mean creating resilience in operations, technological and financial processes. While an operational resilience will be to maintain stable production and services during disruptions without sacrificing quality, technological resilience will mean investing in a strong, secure and flexible information technology infrastructure to manage cyber threats and breakdowns.
To achieve financial resilience there is a need for continuous risk scanning by gathering intelligence and empowering people at appropriate levels for faster risk response, it added.
Stressing on the need to move beyond the static annual documentation for risks management through the years, Sunil Kalra, Partner – Governance Risk Compliance (GRC) Services, Mazars Advisory LLP said, “The recent pandemic and the current global economic uncertainties have prompted businesses to consider risks in a different light. To achieve strategic resilience, companies need to deploy and implement various methods of risk assessment and risk management. Risk management should thus be aligned with business objectives and monitored frequently and efficiently. Technology should be fully explored to support risk monitoring and evaluating risk strategies.”
Mazars Advisory noted that in addition to the business-related sustainability risks, climate-related risks have been rising and continue to threaten businesses and economies. While there is an increase in awareness and activism among stakeholders towards doing responsible business, there is strong link between climate crisis and environmental degradation. “India is at a cusp of change; where businesses will have the opportunity to become early adopters of sustainability disclosures. That said, an overarching regulatory framework is needed to cover all aspects of rising reporting standards and their impact on social issues. In future, a measurement of sorts of companies based on their environmental, social, and governance (ESG) performance will only make the market transparent and more investor-friendly,” said Sarika Gosain, Partner – Assurance, ESG & Sustainability, Mazars Advisory LLP.
The Securities and Exchange Board of India (SEBI), in May 2021, introduced a new reporting requirement called the Business Responsibility and Sustainability Report (BRSR) with the intent of having quantitative, qualitative and standardized disclosures on ESG parameters. The market regulator plans to rate companies based on ESG performance and would help them win the trust and credibility of investors and other key stakeholders.
Both experts spoke at the ASSOCHAM’s 2nd International Conference on Financial Reporting and Control – Emerging Developments, Challenges, and Solutions that took place 21 July and witnessed the presence of eminent speakers, including the Shri Suresh Prabhu, Hon’ble Member of Parliament; Member – Standing Committee on Finance & Former Minister of Civil Aviation, Railways, Commerce & Industry, and Shri Subhash Chandra Baheria, Member of Parliament (Lok Sabha); Member – Committee on Public Accounts; Standing Committee on Finance; Standing Committee on Labour, Textiles and Skill Development.
Mazars is an internationally integrated partnership, specialising in audit, accountancy, advisory and tax services. Operating in over 90 countries and territories around the world, we draw on the expertise of more than 44,000 professionals – 28,000+ in Mazars’ integrated partnership and 16,000+ via the Mazars North America Alliance – to assist clients of all sizes at every stage in their development.
In India, Mazars has an ambitious growth plan and already has a national presence with a strong team of over 1,000 professionals with 6 offices located in Bengaluru, Chennai, Delhi, Gurugram, Mumbai and Pune. Our professionals have in-depth experience in sectors like Energy, Telecom, BFSI, Automobiles, Technology, Real Estate, Shipping, Services, Manufacturing and Retail.
Find out more on www.mazars.co.in
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