Articles and Whitepapers

ISO 37008 ‘Internal Investigations of Organisations – Guidance’ 

Unlocking the key to an effective investigation strategy

Many organisations have attempted to streamline their investigation framework through internal policies, customised investigation manuals, etc. In terms of best practices/guidelines, the recently introduced ISO 37008 Internal investigations of organisations—Guidance issued by the International Standards Organisation (ISO) stands out as a pivotal development.ISO 37008 is universally applicable across various organisations and industries, providing a structured framework for internal investigations in line with standardised procedures.

Balancing environmental sustainability and market competition

Reassessing conventional antitrust assessments to be inclusive of ESG principles

Since Environmental, Social, and Governance (ESG) concerns are gaining global prominence, businesses and regulators alike are realigning their strategies to ensure long-term viability and foster positive societal impact. However, this shift also presents challenges, as policies focussed on competition and market efficiencies may sometimes conflict with environmental priorities.

Navigating this dichotomy between competition-driven market efficiency and environmental impact is, therefore, crucial and requires balancing economic imperatives with environmental considerations to achieve sustainable development goals.

New criminal laws coming into force 1 July 2024

A forensic lens to assess the impact of recent legal reforms

The three new criminal laws, the Bharatiya Nyaya Sanhita, the Bharatiya Nagarik Suraksha Sanhita, and the Bharatiya Sakshya Adhiniyam, which replace the Indian Penal Code (IPC), the Code of Criminal Procedure (CrPC), and the Indian Evidence Act respectively, will come into force from 1 July this year. This thought paper sheds light on the amendments made in the new laws and the way forward in combatting organised crime

Tackling corruption in India's logistics sector

Time to revisit your anti-corruption compliance programme?

The Indian freight and logistics market size, currently estimated at ~US$ 280 billion, is expected to cross US$ 400 billion by 2029 during the forecast period (2023-2029). In addition, the seventh edition of the World Bank Logistics Performance Index(LPI) witnessed a rise in India's ranking from the 44^th position in 2018 to the 38^th position in 20232. This signals how this sector continues to support the country’s fast-paced growth.

Navigating complex commercial disputes: The role of independent experts

Over the past decade, we have seen tremendous progressin terms of precedence being given to Alternative DisputeResolution (ADR) mechanisms in the Indian dispute landscape.The recently proposed institutionalisation of the mediationprocess is also a step forward in facilitating the ease of doingbusiness in India and reducing the pressure on the judiciary.

Third-party risk management

In today's inter connected and globalised business landscape, most organisations rely on third-parties to achieve operational efficiency and competitiveness. However, the increased reliance can expose organisations to several risks with severe consequences.

2021 United Nations Climate Change Conference: Key decisions and takeaways

Our paper provides an overview of some of the key takeaways of the Climate Pact, the commitments made by India, and certain action items that you as an organisation could take and/ or be prepared for.

The state of in-house investigation capabilities among organisations

In the past five years, internal investigation teams have become common place in global companies with a presence in India. Large Indian companies, conglomerates, and banks have invested in setting up in-house investigation teams to systematically address fraud, misconduct, and non-compliance. Internal investigation capabilities are regarded as a best practice to demonstrate strong corporate governance. Cases of self-reporting are usually viewed as examples of strong ethical and compliance standards.

The survey report allows organizations to benchmark their own investigations capabilities against those of other companies.

Business Responsibility and Sustainability Report - What does it mean for the top 1,000 listed entities in India?

Disclosure requirements have leapfrogged globally in the last decade, holding companies accountable for their identification of Environment, Social and Governance (ESG) responsibilities and their transparent incorporation in annual disclosures.

In line with these global developments, the Securities and Exchange Board of India (SEBI), in its continued efforts to enhance disclosures on ESG standards, introduced new requirements for sustainability reporting by listed companies. The new reporting format named, Business Responsibility and Sustainability Report (BRSR), aims to establish links between the financial results of a business with its ESG performance. This can make it easier for regulators and investors, and allied stakeholders to obtain a fair estimate of overall business stability, growth and sustainability (hitherto based on financial disclosures alone). SEBI has mandated that the BRSR will be applicable to the top 1,000 listed entities (by market capitalisation) for reporting on a voluntary basis for FY2021–22 and on a mandatory basis from FY2022–23.
 

Integrated Risk Management and the 3 Lines Model

The recent revision of a recognized risk management model provides organizations a fresh reason to consider an enhanced approach to risk management leveraging digital capabilities.

The Institute of Internal Auditors (IIA) recently issued a modernized version of its traditional Three Lines of Defense model, which provides guidance to organizations on the coordination of risk management across the enterprise with a focus on the role of internal audit. Now called the Three Lines Model, it has been updated to reflect current practices in an increasingly complex business and risk landscape, offering evolving risk management guidance to organizations as they seek to achieve their strategic objectives.

Artificial Intelligence in cross-border forensic investigations

With continuously evolving business models, increased use of technology, and a changing regulatory landscape, fraud management is fraught with newer and more complex challenges than ever. These challenges are further exacerbated during cross-border investigations, where varied levels of standardisation, languages, local laws and regulations, along with specific cultural attributes bring additional complexities—mandating an investigation methodology standardisation and requiring tools for quick insights.

Pre-empt distress in loan accounts

In the recent years, banking sector in India has seen a rise in Non-performing Assets (NPAs) due to various reasons. The onset of the COVID-19 pandemic is expected to further negatively impact the NPA position in banks. Many businesses facing a zero-revenue situation might turn to banks for fresh loans or existing loan extensions. Considering the banking sector is already grappling with significant proportion of NPAs, banks need to exercise greater caution while monitoring or sanctioning new loans.

The Institute of Chartered Accountants of India’s (ICAI’s) Guidance note on ‘Early Signals of Fraud in Banking Sector’ also mentions continuous monitoring through tracking of certain early warning signals to pre-empt suspicious behaviours.

This document shares some perspectives on how banks can relook at their fraud risk management efforts to better manage their NPAs.

Are bad banks effective options to tackle non-performing assets arising out of COVID-19?

The extended lockdown to tackle the spread of COVID-19 has stalled economic activities, resulting in large-scale job losses. This has adversely affected the cash flow in businesses with an overarching impact on obligations including interest payments, loan repayments, and tax payments. There are existing non-performing assets (NPA) amounting to about 9.1 percent of the total assets (as of September 2019) Indian banks. At present, the government supposes the figure to double to 18–20 percent[1] by the end of the fiscal year, owing to the partial functioning of businesses. This fresh surge in NPAs has reinitiated discussions around bad banks as a strategy to deal with bad loans/NPAs.

Towards better anti-bribery and corruption compliance

Bribery and corruption remain a significant fraud risk for businesses across the world. Regulators across the world are trying to set comprehensive guidelines backed by stringent enforcement action to help organisations reduce instances of bribery and corruption.

Building trust in the vendor risk management ecosystem

Organisations’ procurement cycles are prone to fraud. Nearly a third of the respondents of the Deloitte India Corporate Fraud Perception Survey (Edition III, 2018), believe that procurement remains the most vulnerable to fraud risks. These risks, if not managed well, can have a disastrous impact on organisations’ reputation and financials. An increasing number of organisations use suppliers from various geographies with different complexities. This increases the likelihood of fraud and corruption in the procurement cycle and makes detection difficult.

Navigate to excellence with process mining

State-of-the-art business operations are largely process-driven, often supported by a variety of IT systems. Their ever-growing complexity poses tremendous challenges for process transparency, control, and efficiency.

Data discovery readiness assessment

Today’s business clime is that of risk and uncertainty. Even the slightest slip may lead to a possible litigation and jeopardise the reputation of your organisation. It therefore becomes crucial to be prepared adequately before a litigation, an investigation, or a regulatory request hits your doorstep. One of the most important steps towards this, is to proactively assess and structure your information governance processes. Effective preparation, a well articulated data map, and an integrated approach can help you make streamlined and timely decisions and protect your business.

Prevention of Sexual Harassment at the Workplace

The Bombay Chamber of Commerce and Industry organized a workshop titled “Effective Functioning of Internal Complaints Committee (ICC)” in Mumbai on 19 January 2018. The objective of the session was to help address the role of the ICC at the workplace under the Protection of Women against Sexual Harassment at Workplace (Prevention, Prohibition and Redressal) Act, 2013.

Anti-fraud and Compliance

Deloitte Forensic’s Anti-fraud and Compliance Preparedness eLearning Training Programs offer organizations the flexibility of customized modules on a web-based platform to create awareness about these issues within the organization. This, in turn, may help the organization comply with its regulatory requirements pertaining to fraud risk management, misconduct, and non-compliance.

Robotics – Will the final frontier be fraud free?

Robotic Process Automation (RPA) or intelligent automation (the combination of artificial intelligence and automation) is starting to change the way business is done.

Data breach scenario III

For a layperson, what do recent events of data breach and manipulation mean? Are there serious repercussions, especially given the fact that crores of people’s records have been compromised? The chances of an individual being impacted might thus be miniscule.

Deloitte’s Forensic practice in India presents a five part article series where fictitious cases help explain different data breach scenarios and their impact. These cases have been put together based on Deloitte Forensic’s extensive experience of working on some of the top fraud, misconduct and noncompliance investigations in India over the last decade.

Data breach scenario II

For a layperson, what do recent events of data breach and manipulation mean? Are there serious repercussions, especially given the fact that crores of people’s records have been compromised? The chances of an individual being impacted might thus be miniscule. Deloitte’s Forensic practice in India presents a five part article series where fictitious cases help explain different data breach scenarios and their impact. These cases have been put together based on Deloitte Forensic’s extensive experience of working on some of the top fraud, misconduct and noncompliance investigations in India over the last decade.

Data breach scenario I

For a layperson, what do recent events of data breach and manipulation mean? Are there serious repercussions, especially given the fact that crores of people’s records have been compromised? The chances of an individual being impacted might thus be miniscule.

Deloitte’s Forensic practice in India presents a five part article series where fictitious cases help explain different data breach scenarios and their impact. These cases have been put together based on Deloitte Forensic’s extensive experience of working on some of the top fraud, misconduct and noncompliance investigations in India over the last decade.

Considerations for building in-house fraud risk management teams: Expertise

Organizations understand the urgent need to build a strong fraud risk management framework to effectively prevent, detect, and respond to fraud. There are, of course, various considerations in putting together such a framework, including infrastructure and costs, experience and expertise, independence, and ancillary support, that need to be examined in order to address all of the organization’s needs.

Digital leap for ESG reporting

Digital ESG platforms are evolving and have started offering tangible outputs to not just the stakeholders but also to the businesses.

The Corporate Sustainability Reporting Directive (CSRD): Indian companies with EU business interests

The CSRD has amended and expanded disclosure requirements, topping it up with limited assurance to begin with; this may get revised to reasonable assurance with maturity in disclosures across the EU business ecosystem, which is expected to happen before the end of CY2028.