India's corporate sector, including small and middle size companies, needs to accelerate internal process of risk management and scale up the best practices to keep pace with the fastest growing national economy, according to experts.
The experts, who participated in the Singapore Global Convention 2018 from December 5 to 7, called for more efforts to match the in-house standards and processes set by American and European corporations and stressed on the need to adopt Enterprises Risks Management (ERM).
ERM are the methods and processes used by organisations to manage risks and seize opportunities related to the achievement of their objectives.
"Given the opportunities in India, we need the corporate world fully internally risk protected and adopt the ERM framework," Atul Temurnikar, co-founder and chairman of the Global Indian International School in Singapore and also the chairman of the convention, said.
According to the experts, the improvement in business operations among the Indian companies is slow and needs to be at par with the American and European standards.
"The American and European companies have far stronger and stringent standards. Their internal way of working is also far more process and control driven," N V P Tendulkar, a consultant and independent director of two Indian companies, said.
Stating that India still has a long gap to be at par with global corporate on good governance, Tendulkar urged family-owned businesses to make "mind-set change" from their own operating legacy.
"Corporatise, reduce the risk and enhance governance, as it is very important to adopt global standards very fast," he said.
The experts said that large number of mid-and small size companies are not focusing on managing their risk across the supply chain.
"Some very big companies are doing risk management while many others are doing it from the perspective of compliance," Sarang Mahajan, Principal, Asia Pacific at Du Pont Sustainable Solutions, said.
"But we would like to see the big companies leading the compliance and be couple of steps ahead of the game. They should also help their suppliers in the tier 2 and tier 3 to fulfill the compliances," he added.
The convention was organised by the UK-based Institute of Directors' India establishment and was held in the midst of Indian professional community based in Singapore familiar with business cultures in India and South East Asia.
"This makes it an important platform for Indian and South East Asian businesses to adopt best global practices, explore and exploit regional business opportunities," Sanjiv K Aiyar, President, Pan-IIM Alumni Singapore, said.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)