Malpractices create an environment of risk for companies in India
According to a recent report, the corporates are required to have a management system that is efficient enough to stand as a guard against those practices that come up with sizeable and overlooked sources of risk to companies that are carrying out business deals in India.
Control Risks which happens to be a risk consultancy recognized globally has mentioned that grey practices are everyday schemes that were involved while using mass registration and addresses, ownership structures that are opaque and cash generation tactics as well. This has been made with precision in order to maximize profit through deception.
James Owen, who happens to be the director of Control Risks has stated that grey practices can look like a proper and legitimate business deal at first. But later they can turn into a legal and regulatory risk. The white paper mentions that malpractices have often been noticed in fields such as pharmaceuticals, construction, engineering, liquor and infrastructure as well.
The grey practices are found in every part of the globe especially in an environment of business where the tie between business and politics happens to be very close. Stealing of intellectual property and various other malpractices has also been seen. However, Own says that changes for the better are taking place.
Source – PTI
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