There is a news article today that Bharati's insurance firms have been fined a penalty of Rs 20 Lakhs by IRDA. This is for a serious non compliance in company laws relating to reporting ownership changes. So, how did this happen. What could have prevented this. Simple...Risk Management and Compliance Management Framework. Just like you cannot remember 100 things you do in a day, and use reminder tools such as calendar, Task List of outlook, you cannot remember what needs to be done when as the business grow more complex. Businesses are now structuring their ownerships in a complex ownership structures for a variety of reasons. The ill effect of this is that any changes upstream does not properly reflect in the regulatory compliance downstream. So, if the "grandparent company" were to make changes, they are not properly reported for compliance of the "grandchild" company. Risk Management and Compliance Management Frameworks to prevent such errors are easy to implement. It just requires a little commitment to make small but effective changes. Small and cheaply available GRC tools and software can also make a big difference. A few Lakhs in automation of the compliance process goes a long way to smoothen the complex regulatory and legal world. Company's usually question : What are the benefits of getting someone to come and establish risk management policies and processes. What are the tangible gains. Our response : We will not show you that value. You will realize it on your own and the difference... Whether you implement risk management or NOT. So, lets take the baby steps to Risk management today. Make small premium like investments today to insure yourself to the large unanticipated losses and reputation risk.