'Having a strategic direction when looking at risk is vital at the board level,' says Sandeep Parekh. Two experts spoke on the regulatory landscape in India and how they examined the diverse nature of risks that enterprises face at the BT500 Wealth Creators Summit, and both stated recognizing risks is a major task.

Two experts presented at the BT500 Wealth Creators Summit about the complexities and dynamics of risk in the corporate world. Dinesh Kanabar, CEO of Dhruva Advisors LLP, and Sandeep Parekh, Managing Partner of Finsec Law Advisors, spoke about the regulatory landscape in India and how they dissect the multifaceted nature of risks that enterprises face in a session titled "Business of Risk."

"According to the Harvard Business Review, there are three types of hazards. Preventable risks, internal to the organization, such as an employee going rogue, anything unethical, or risk noncompliance. Strategic risks include risk and reward, as well as whether or not to remain invested. Environmental dangers, such as a war breaking out, are beyond the control of any institution. "Organizations must prioritize risk," Kanabar stated.  Parekh went on to say, "It's important at the board level to have some kind of strategic direction when looking at risk."

"Whenever a regulator is looking at a board of directors duty to the company they will always look at how your policies sound, did you act and beyond that don't want to penalize the company," he added.

"The only fiduciaries in the world who have a protection called the business judgment rule are directors." "Go ahead and make mistakes; you won't be held accountable for them as long as you're loyal and diligent," Parekh added. Experts discussed the ease of doing business in India.  

"In 2022, a study was conducted on MNCs that want to leave China or establish a new base outside of China, and 76 such companies were identified." 26 of them moved to Vietnam, and 6 to India, demonstrating where we are. "We have a lot of potential, but it all comes down to execution," Kanabar remarked.