Risk and Regulation

Risk and regulation are evolving rapidly as organisations navigate an increasingly complex landscape shaped by digital transformation, emerging technologies, regulatory change and heightened stakeholder expectations. As businesses become more interconnected and data-driven, risk management is moving beyond traditional compliance to focus on resilience, trust, governance and proactive risk mitigation. Organisations are increasingly required to manage a wider spectrum of risks - from cyber threats and data protection to financial crime, third-party dependencies and regulatory accountability.

This transformation is being accelerated by the convergence of AI, data governance and evolving regulatory frameworks. Supervisory guidance around customer data protection, AI-driven cyber threats, financial crime prevention and credit risk management is reshaping how organisations identify, assess and manage risk. At the same time, businesses are leveraging new technologies such as generative AI, advanced analytics and next-generation forensic tools to strengthen investigation capabilities, enhance monitoring and improve decision-making. As risk agendas mature, the focus is shifting from reactive compliance to building credibility, transparency and enterprise-wide resilience.

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Digital risk and cyber resilience

Strengthening security, data protection and organisational resilience in an evolving threat landscape

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Technology-enabled risk management

Leveraging AI, analytics and automation to enhance risk monitoring and decision-making

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Regulatory compliance and governance

Embedding transparency, accountability and trust across business operations

At the same time, risk and regulation are increasingly being shaped by broader business, technology and ecosystem considerations.

Customer data protection and privacy

Strengthening governance and data management practices
AI-accelerated cyber risk management

Enhancing safeguards against emerging digital threats
Transforming financial crime management

Through generative AI and advanced analytics
Next-generation forensic capabilities

Improving fraud detection, investigation and response

Third-party risk management

Strengthening oversight across increasingly interconnected ecosystems
Expected credit loss and regulatory risk frameworks

Supporting stronger financial resilience and risk assessment
Workplace governance and compliance

Integrating technology, data and operating model evolution
Transparency and software supply chain assurance

Improving trust through initiatives such as Software Bill of Materials (SBOM) frameworks

KPMG in India empanelled by SEBI

KPMG in India has been empanelled by the Securities and Exchange Board of India (SEBI) for assignments relating to forensic audits of listed companies.

This empanelment reflects the strength of our forensic practice and decades of experience supporting organisations on complex investigations, financial reviews, regulatory matters and risk-related engagements.

Latest insights

Evolving cyber fraud and digital ecosystems demand intelligence‑led, evidence‑driven, and constantly evolving investigation models

Disciplined strengthening of cyber controls alongside responsible AI deployment

For most of its history, risk management has been a discipline of assembly. Risk teams gathered data from across the organisation, consolidated it

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Key war time considerations for data centres and the shift towards resilient and survivable future designs

The RBI’s ACPIR directions aim to improve the comparability of ECL estimates for Indian banks with global peers

Driving growth with Risk and Regulations trends

Centre for Advanced Financial Research and Learning (CAFRAL)
RBI advisory on AI-ACT&RS
IIA Annual Conference 2026
Accelerating AI with managed services
AI reshaping the boardroom
Managed services backbone AI
Next-Gen Forensic
Implications of the RBI's ACPIR framework
Global trade, geopolitics and long‑term resilience
Expected credit loss model
Global trade reshaped by geopolitics and volatility
RBI Investment Portfolio Amendments, 2026
RBI ACPIR and SA-CR Directions, 2026
Regulations address systemic risk at the source
Trends in financial reporting
Conference on the Forensics of Fraud Investigation by FICCI
Internal Audit breakfast session 2026
ET Great India Retail Summit and Awards 2026
Resilience in global uncertainty
India Inc gears up to deal sanction risk
Microsoft AI and Cloud Innovation roundtable
KPMG at The CFO Board
ET NOW BFSI Leadership Summit 2025
CII CFO Roundtable
International Fraud Awareness Week 2025
Bank CFO Meet
India Inc retools internal audits amid fraud risks, AI push
Emerging risks in cybersecurity: IT and OT environment
The CFO Board’s Risk Roundtable
CFO Advisory breakfast session
Recent accounting and finance developments
Financial Services and its future readiness
Digital Innovation in Financial Services
UPSI Breakfast Session
Centre for Advance Financial Research and Learning (CAFRAL)
Internal Audit Month

Suveer Khanna

Partner and Head, Forensic Services

KPMG in India

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Legal evidence is far more important than information- it is the foundation upon which accountability, governance and trust are built. In an increasingly digital and complex environment, organisations must ensure that evidence is collected, preserved and managed with the highest levels of integrity. A well-conducted forensic audit not only uncovers the facts but also creates a defensible narrative that can withstand regulatory, legal and stakeholder scrutiny. The difference between suspicion and action often lies in the quality of the evidence.

Kunal Pande

National Leader - Cyber, Risk and Compliance Services

KPMG in India

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While, businesses are experiencing meaningful value from AI, most are concerned about data security, privacy and AI induced risks.

Recent RBI advisories rightly focuses on the two important aspects:

Having strong governance for responsible and safe use of AI and
Strengthening capabilities against AI accelerated cyberattacks.

Akhilesh Tuteja
Sumit Kapoor
Devesh Jain
Sidheshwar Bhalla

Akhilesh Tuteja

Partner & National Leader, Clients and Markets

KPMG in India

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AI that speeds up legacy processes is not transformation; it scales inefficiencies. Real value lies in rethinking work: challenge assumptions, redesign workflows, create new value. This requires unlearning, diverse perspectives, and courage.

Leaders must look beyond the brief, surface unseen insights, and redefine outcomes. The future favors those who rethink problems, not just tools.

Sumit Kapoor

Partner, Risk Advisory, Head – Our Impact Plan

KPMG in India

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AI is not replacing auditors, it is augmenting them. By automating routine activities and unlocking deeper insights from data, AI enables Internal Audit professionals to spend less time gathering information and more time understanding risks, asking the right questions, and delivering strategic value.

Devesh Jain

Partner

KPMG in India

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The future of Internal Audit is not defined by the issues it identifies, but by the insights it delivers. Assurance is table stakes; value comes from foresight, perspective, and the ability to influence better decisions.

Sidheshwar Bhalla

Partner, GRCS-North
KPMG in India

As auditors, we spend our careers helping organisations stay balanced and resilient. The same principle applies to us as individuals. Physical wellness, mental wellness, and spiritual wellness are deeply interconnected, and nurturing all three helps us bring our best selves to work and life.

Maneesha Garg

Partner & Head – Managed Services, Forensic, F&A, HR, Learning, Insight Led sales, Digital business operations and Sourcing

KPMG in India

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As AI becomes central to enterprise transformation, organisations in India today are now eager to move from pilots to production, while managing legacy systems, scarce skills, and escalating cyber risk. Managed Services are fast evolving from a support function into a strategiv foundation, with AI-led scaling and transformation.

By integrating new technologies with existing platforms, strengthening data and AI governance, and bringing deep domain expertise, managed services offer a space where Indian organisations can accelerate value creation, through focus on mission-critical processes, and build sustainable, future-ready business innovation, while maintaining the resilience and discipline required to operate at scale.

Manoj Kumar Vijai

Non-Executive Chairman, Office Managing Partner - Mumbai

KPMG in India

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Indian boards must move from passive oversight to active AI stewardship, embedding accountability, risk discipline, and value creation at the core of governance.

As firms scale from pilots to enterprise adoption, boards must navigate a landscape defined by speed, uncertainty and structural change - without managing AI directly.

Maneesha Garg

Partner & Head – Managed Services, Forensic, F&A, HR, Learning, Insight Led sales, Digital business operations and Sourcing

KPMG in India

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India Inc. is leaning on partners to fuel growth, with vendors now acting as tech and innovation extensions. But as ecosystems expand, risk rises.

Managed services are emerging as the backbone for AI at scale, enabling secure data, compliance, and performance through a new operating model.

Suveer Khanna
Gagan Budhiraja

Suveer Khanna

Partner and Head, Forensic Services

KPMG in India

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Fraud has evolved into a full‑scale enterprise, with digital technologies accelerating both its scale and sophistication. Traditional investigation methods are struggling to keep pace, making proactive forensic readiness and evidence‑led defence a leadership imperative. Strengthening resilience requires organisations to adopt agile, intelligence‑driven forensic capabilities.
The division of labour is fueling fraud's industrial revolution, where fraud actors no longer operate in isolation but through specialised roles across mule, access broker, launderers, recon agents and executors.
At the same time, the nature of evidence is changing, becoming more fragmented across devices, platforms, payment systems, cloud environments, and third-party ecosystems.
As fraud grows in scale and complexity, necessity is driving innovation - bringing regulators, institutions, and industry participants to work more closely than ever before.
In this new environment, organisations must move from reactive investigation to forensic readiness – built on collaboration, governance, technology-enabled intelligence, and the discipline to stay one step ahead of the fraudsters.
As risk landscapes continue to evolve, organisations must move beyond viewing fraud, cyber and digital threats through the lens of compliance alone.
The discussion reinforced that while prevention, detection and response capabilities have matured significantly, the real challenge lies in building the ability to pre-empt emerging risks. In an increasingly interconnected ecosystem, resilience will be defined not by how organisations react to disruption, but by how effectively they anticipate it, adapt to it and preserve stakeholder trust through it

Gagan Budhiraja

Partner, Forensic-Inv
KPMG in India

Modern fraud investigations must move beyond reactive approaches to become part of a continuous intelligence ecosystem. By integrating digital evidence, financial trails and advanced analytics, institutions can not only respond faster but also build stronger prevention and control frameworks for the future.
As fraudsters increasingly leverage AI, deepfakes, mule networks, and sophisticated social engineering techniques, the challenge before institutions is no longer just detecting suspicious transactions but understanding suspicious behaviour.
The discussion reinforced that the future of fraud prevention lies in moving from rule-based controls to intelligence-led, behavioural risk models, supported by stronger collaboration across regulators, financial institutions, technology providers, and law enforcement agencies.

Rajosik Banerjee
Amitava Mukherjee
Somdeb Sengupta
Venkateswaran Narayanan

Rajosik Banerjee

Partner and National Head, Risk and Finance Advisory

KPMG in India

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Financial reporting and risk management are becoming increasingly intertwined, particularly in areas such as Fair Value measurement, Effective Interest Rate (EIR) calculations, Initial Recognition, and Expected Credit Loss (ECL) governance.

Robust governance, transparent methodologies, and strong end-to-end processes are essential for achieving high-quality financial reporting, enhancing risk insight, and ensuring regulatory readiness in an increasingly dynamic banking environment.
ACPIR implementation is not just a modelling exercise, it is a business transformation programme. Beyond methodology and governance, institutions will need to carefully assess transition impacts across capital, profitability, reporting, and taxation. Early alignment between finance, risk, tax, and technology teams will be critical to ensuring a smooth and sustainable adoption journey. The quality of implementation will matter as much as compliance itself.

Amitava Mukherjee

Partner, Financial Risk Management

KPMG in India

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The true impact of ECL goes far beyond finance and accounting. It will reshape business models, ICAAP, ALM, portfolio strategy, and regulatory compliance, compelling banks to embed risk thinking into every layer of decision-making.

Somdeb Sengupta

Partner, Financial Risk Management

KPMG in India

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The new regulations should not be looked as mere change in provisioning norms - it gives financial institutions a powerful tool for forward looking decision making. Making informed choices at every stage of customer lifecycle - origination to collections as well as nuanced portfolio strategy can give banks real competitive advantage.

Venkateswaran Narayanan

Partner, Finance Advisory
KPMG in India

After a decade of submitting proforma Ind AS financial statements to the Reserve Bank of India (RBI), banks in India are set to implement ECL & EIR from FY 2027-28. The implementation of ECL & EIR presents the opportunity to harmonise financial, risk & regulatory reporting in the areas of provisioning, credit risk management & periodic regulatory submissions. The implementation is expected to have a lot of rigor in the areas of data, process & governance as these will be subject to audit.

Mustafa Surka

Partner, Forensic Services, Risk Advisory Consumer Markets & Retail Leader

KPMG in India

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Global trade is being reshaped by geopolitics. Middle East tensions are disrupting energy and shipping, affecting nearly 20% of oil flows and up to USD5B in cargo daily. Amid the uncertainty, India is stepping up trade ties with the US, UK and EU.

Volatility is set to stay, making structural resilience more critical than short‑term fixes. Organisations that build strong governance, embed compliance, and adopt proactive risk and investigation frameworks are better positioned to manage uncertainty, protect trust, and create durable long‑term value.

Rajosik Banerjee

Partner and National Head, Risk and Finance Advisory

KPMG in India

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RBI directions for banks propose a comprehensive three-layer expected credit loss model that:

reinforces risk oversight,
embeds interest rate–driven income recognition, and
preserves capital strength.

Mustafa Surka

Partner, Forensic Services, Risk Advisory Consumer Markets & Retail Leader

KPMG in India

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Global trade is being reshaped by geopolitics. Middle East tensions are disrupting energy and shipping, affecting nearly 20% of oil flows and up to USD5B in cargo daily. Amid the uncertainty, India is stepping up trade ties with the US, UK and EU.

Volatility is set to stay, making structural resilience more critical than short‑term fixes. Organisations that build strong governance, embed compliance, and adopt proactive risk and investigation frameworks are better positioned to manage uncertainty, protect trust, and create durable long‑term value.

Rajosik Banerjee

Partner and National Head, Risk and Finance Advisory

KPMG in India

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RBI has amended the Investment Portfolio Directions to align banks’ investment books with the new ECL & EIR framework, effective 1 April 2027.

Key shifts:

HTM & AFS (debt) brought under Stage‑wise ECL provisioning
Mandatory use of Effective Interest Rate (EIR) and amortised cost
Fair value reset on 31‑Mar‑2027, with transition impact routed to reserves (not P&L)
Stronger linkage between NPAs and NPIs and tighter income recognition for Stage 3

Key note: Entire investment will be carried on EIR effective April 2027, unlike in the case of existing loan portfolio, transition to EIR extended till Mar 2030. However new loans will be on EIR from April 2027

Net effect: A decisive move towards credit‑risk‑sensitive accounting, aligning loan and investment books under a common prudential framework.

Rajosik Banerjee

Partner and National Head, Risk and Finance Advisory

KPMG in India

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RBI ACPIR Directions, 2026

A Step Change in Credit Risk Management: The RBI has notified the much awaited ECL circular, marking a significant shift in how Indian banks assess and provision for credit risk. The framework retains the NPA regime, while introducing a forward‑looking Expected Credit Loss (ECL) model with stronger governance, system automation, and global alignment effective from April 2027.
Key highlights include 3‑stage ECL provisioning, tighter SICR assessment, product‑wise prudential floors, EIR-based income recognition, and a phased transition period to manage capital impact. Overall, the move strengthens resilience by shifting focus from loss recognition after default to loss anticipation before default.
It also brings in the framework of Model Risk Management (MRM) for development and validation.
A material reform - both strategic and operational - for the banking system.
RBI SA-CR Directions, 2026
RBI has also issued the Standardised Approach for Credit Risk (SA‑CR) Directions, 2026, aligning India’s capital framework with Basel III final reforms, effective 1 April 2027.
The framework introduces greater risk sensitivity and prudence through:
- Granular exposure‑wise risk weights
- Enhanced use of external ratings with ODR‑based adjustments
- Stronger treatment for unrated large exposures, CRE‑ADC, specialised lending and equity/fund investments
- Revised CCFs, CRM norms and NPA risk weights linked to provisioning
Overall, this is a material upgrade to credit risk capital regulation, with direct implications for capital planning, portfolio strategy and risk governance over the next two years.

Sanjay Doshi

Partner and Head, Transaction Services and Financial Services Advisory

KPMG in India

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Regulations address systemic risk at the source. For state government loans, norms hinge on exposure and capital adequacy. Guarantees ease exposure limits but still require capital. The NBFC draft is unlikely to change outcomes in the near to mid term.

Manoj Kumar Vijai

Non-Executive Chairman, Office Managing Partner - Mumbai

KPMG in India

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Good financial reporting is no longer about meeting deadlines at year end. It is about building discipline, trust and clear communication throughout the year.

Over the past few quarters, the themes for financial reporting have evolved - from Ind AS 118 and its impact on financial statements, to labour codes, and now to recent financial reporting trends, year‑end reminders, and regulatory expectations including Effective Communication Between Statutory Auditors and Those Charged with Governance (TCWG). What stood out in our breakfast session was how much the focus has shifted from just compliance to quality, clarity, and governance.

Financial reporting is moving rapidly. Expectations from boards, regulators, and stakeholders continue to rise. Timelines are getting tighter. Disclosures are getting deeper. And communication - especially between statutory auditors and TCWG - is becoming more important than ever with an objective to strengthen oversight and improve audit quality.

Geetu Singh

Partner – Risk Advisory and Forensic Services

KPMG in India

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Fraud in 2026 is no longer confined to forged documents, isolated bad actors, or post-facto investigations. Today, we are dealing with cyber-enabled, cross-border, and increasingly automated fraud ecosystems - where social engineering blends seamlessly with malware, where deepfakes can impersonate trust in seconds, and where financial crime often moves faster than traditional controls.

Fraud is no longer just a risk issue. It is a trust issue, a governance issue, and increasingly, a board‑level priority and in many cases, a strategic issue. Embedding advanced analytics and robust forensic mechanisms is essential to staying ahead of emerging threats. To remain protected, organisations must embrace technology and intelligence-led prevention and elevate their investigative maturity.

Naveen Aggarwal
Shalabh Saxena
Vivek Kedia
Sidheshwar Bhalla

Naveen Aggarwal

Office Managing Partner

KPMG in India

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Internal audit as the third line of defense earns its relevance not through findings raised, but through first-line judgement shaped and blind spots that never become failures.

Shalabh Saxena

Partner in Consulting – Risk Advisory

KPMG in India

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AI is no longer an experiment for internal audit - it’s becoming a practical enabler of better foresight. Used well, analytics and AI help audit teams move from hindsight to insight, testing controls more frequently, spotting emerging risks earlier, and supporting management with evidence they can act on. Like the business, internal audit is on a learning journey - and AI is accelerating that maturity.

Vivek Kedia

Partner, GRCS-West
KPMG in India

Labour reform will not test HR alone; it will test the integrity of the organisation’s control environment. Internal Audit’s value lies in identifying where compliance transitions create hidden governance gaps.

Sidheshwar Bhalla

Partner, GRCS-North
KPMG in India

Internal Audit’s mandate is shifting from reporting past controls to pre‑empting future risks – through dynamic audit plans, quarterly horizon scanning, and thematic deep‑dives that anticipate where pressure will build next. Integrated insight, not isolated findings, is the new currency of Internal Audit.

Mustafa Surka

Partner, Forensic Services, Risk Advisory Consumer Markets & Retail Leader

KPMG in India

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Retail risk has moved from demand uncertainty to execution precision. In an environment of constrained capital and rapid change, organisations which view inventory and capital as risk instruments, rather than accounting metrics, are best positioned to scale profitably.

Manoj Kumar Vijai

Non-Executive Chairman, Office Managing Partner - Mumbai

KPMG in India

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In times of global uncertainity, resilience becomes a true competitive advantage. As I reflect on the recent 5th Directors Meet in Mumbai, it’s clear that India is navigating global volatility with a steady hand and a long-term view. While our markets may have trailed some global indices during last year’s AI-driven surge, the underlying story is far more strategic.

When foreign capital redirected toward the global AI momentum, India's domestic investors demonstrated remarkable conviction, providing the stability our markets needed. Coupled with forward-looking reforms - from the new data protection framework to progressive labour code updates - India continues to strengthen its economic architecture for the future.

Suveer Khanna

Partner and Head, Forensic Services

KPMG in India

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Given that US dollar is the primary global currency for settlements and dominating international trade, corporations cannot ignore US sanctions risk. In this regard, Indian boards with US touchpoints are required to provide crucial oversight and leadership to the organisation in navigating through the risk of being penalised.

Geetu Singh

Partner – Risk Advisory and Forensic Services

KPMG in India

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Initial resistance to AI gave way to recognition that investigations and forensics now operate on an AI-plus-human model. AI strengthens detection and analysis but human judgement defines accountability and strategy.

Jiten Chopra

Partner and Chief Operating Officer

KPMG in India

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Operational excellence is won in the middle office. This is where strategy becomes execution and where critical capabilities such as R&D, risk, data and compliance come together. When the middle office is weak, organisations face fragmentation and slow decision-making. When it is strong, it aligns core processes to business priorities and enables the organisation to move with speed and clarity.

Targeted investment in the middle office strengthens innovation, improves control and creates a stable platform for growth. It allows client-facing teams to perform at their best and operational teams to deliver with consistency. A disciplined, well-run middle office is not a support function. It is a competitive advantage.

Manoj Kumar Vijai

Non-Executive Chairman, Office Managing Partner - Mumbai

KPMG in India

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India is entering a phase of strong optimism and capital inflows, but true financial leadership lies in ensuring that this capital is not just fast-moving, but sustainable and stable. The next growth arc will be defined by how well we balance opportunity with resilience - making sure the funds we attract are sticky, long-term, and aligned with India’s strategic edge.

Sumit Kapoor
Ummehaani

Sumit Kapoor

Partner, Risk Advisory, Head – Our Impact Plan

KPMG in India

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Businesses today face rapid, unpredictable changes: new products, regulatory shifts, talent competition, ESG, and tech transformation. The pace of “unknown unknowns” or “Black Swan events” is accelerating at an unprecedented pace. Naturally, traditional risk models find it difficult to keep up with that pace as they assume stability and predictability in businesses and operating landscape. AI is emerging as a new risk nervous system helping with fraud detection, cyber defence, supply chain resilience and more. Future operating model of risk management must consider the four-dimensional lens of probability, severity, interconnectedness, and velocity; which helps with real-time intelligence and simulation of multiple futures.

At KPMG we continue to assist our clients stay ahead of the curve through our AI led risk management capabilities – converting noise to signals and doubts to trust.

Ummehaani

Partner – Third party due diligence; ESG Supply chain diligence

KPMG in India

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Third-Party Risk Management (TPRM) has traditionally been fragmented and siloed across departments, sometimes reduced to check-in-the-box compliance. As supply chains are more interconnected and interdependent today, by integrating ESG, regulatory, reputational, cyber and financial risk parameters into a unified framework, organisations can move from reactive to predictive risk management. However, challenges remain: data quality and availability, integration with legacy systems, regulatory compliance and explainability, and change management. Overcoming these hurdles with Artificial Intelligence makes it possible to connect the dots across all risk types, so companies can stop playing catch-up and start leading with confidence, trust, and adaptability.

Hemant Jhajhria

National Head of Consulting

KPMG in India

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White-collar crime is increasing throughout the corporate hierarchy posing a significant challenge to organisational integrity. Organisations must implement proactive fraud mitigation strategies, including whistleblower mechanisms, robust third-party risk assessments, and comprehensive employment screening.

Manoj Kumar Vijai

Non-Executive Chairman, Office Managing Partner - Mumbai

KPMG in India

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Fraud Awareness Week: Building Cultures of Integrity

International Fraud Awareness Week is a strategic checkpoint for leaders committed to safeguarding trust. Fraud prevention isn't just about smarter systems or tighter controls. It's about building a culture where integrity is instinctive and accountability is shared.
From Vigilance to Resilience: The Culture of Fraud Prevention
Fraud is industry‑agnostic and evolves at the speed of business. Our strongest defense is awareness—empowering people to speak up early—backed by clear reporting mechanisms and data‑led vigilance. A combination of three factors is crucial:
- a culture where speaking up is safe,
- governance that assigns real accountability, and
- technology that turns data into early warning.
Most breakdowns don’t start with a headline—they start with small anomalies that go unreported or unanswered. We must equip teams to recognise red flags, use analytics to detect patterns in real time, and rehearse our response so decisions aren’t made on hunches. When this is done consistently, vigilance becomes resilience.
Turning Regulatory Intent into Readiness: Insights from our Bank CFO Meet
At the Bank CFO Meet, one theme stood out: regulation isn’t just a compliance exercise—it’s a readiness challenge. The RBI’s draft ECL framework is a signal for Bank CFOs to act now, not later. Aligning intent with execution means bridging gaps in data, models, and governance before they become bottlenecks.

Three actionable takeaways:
- Start early, start with data. Map model, data, and disclosure gaps now so year one becomes a learning loop—not a scramble.
- Make finance–risk–audit collaboration the default. Clear ownership and documented judgements shorten the distance from signal to decision.
- Embed accountability with real-time visibility. Analytics surface weak signals; culture and governance ensure they’re acted on—fast.

Maneesha Garg

Partner & Head – Managed Services, Forensic, F&A, HR, Learning, Insight Led sales, Digital business operations and Sourcing

KPMG in India

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When global fraud losses continue to rise costing trillions annually, the deeper impact is on confidence, culture, and trust. While AI and digital accelerations are driving innovation, they're also giving fraudsters an unprecedented reach to perpetrate fraud. As leaders, we just go beyond compliance and foster a culture where integrity is instinctive and trust remains our strongest safeguard.

Suveer Khanna

Partner and Head, Forensic Services

KPMG in India

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Fraud isn’t just a risk—it’s a shared responsibility of citizens and corporates.

In recent updates to some global laws most notable UK’s Economic Crime and Corporate Transparency Act 2023, the new “Failure to Prevent Fraud” offence (effective 1 September 2025) places a legal duty on large organisations to implement reasonable fraud prevention procedures.

Broken links in your control chain can lead significant reputation risk and many other implications.

Strengthen every link. Fraud awareness today prevents risks tomorrow.

Vishnu Pillai

Financial Services Technology Leader, Office Managing Partner - Kochi

KPMG in India

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Fraud awareness is the stepping stone to fraud avoidance. In an environment, where pervasiveness of technology makes it easier for slipups to happen, it's important that a 360 degree culture to fraud management be inculcated in today's rapidly growing economy.

Sandeep Paidi

Partner, Government & Public Services (G&PS); Lead - Health, Human & Social Services (HHSS) and Office Managing Partner – KPMG in Hyderabad

KPMG in India

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Fraud is not confined to any sector or geography; it’s a dynamic challenge that evolves with technology, market dynamics, regulatory challenges, and human behavior. At its core, fraud awareness, which is our first line of defence and our most effective countermeasure, is a commitment to three fundamental pillars: integrity, trust and culture built on vigilance & values.

Today, as leaders and professionals from diverse sectors, it is our collective responsibility to reinforce these three pillars and strengthen our organisational resilience.

Naveen Aggarwal

Office Managing Partner

KPMG in India

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The fraud landscape is undergoing a significant evolution. Business and market dynamics, coupled with an unpredictable regulatory environment, rapid technology adoption, and shifting stakeholder expectations, are creating heightened uncertainty. As organisations accelerate digital transformation and embrace AI, new vulnerabilities are emerging from a fraud perspective.

In response, businesses are reinforcing internal controls, deploying real-time monitoring, and cultivating a culture of transparency to stay ahead of these risks. Moreover, resilience against fraud is not a one-time effort. By remaining vigilant, harnessing intelligent detection tools, and ensuring prompt reporting, organizations can collectively fortify their defense.

Ummehaani

Partner – Third party due diligence; ESG Supply chain diligence

KPMG in India

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Building Trust with Smarter Vendor Oversight

Third-party relationships can be a hidden gateway for fraud. Weak vendor onboarding or lack of monitoring often leads to procurement fraud, bribery, or compliance breaches.

Organisations can take preventive measures such as background checks before onboarding vendors, use technology for risk scoring and anomaly detection, implementing continuous monitoring of vendor transactions and performance; and enforcing clear anti-bribery and corruption clauses in contracts to ensure third-party integrity.
TPRM: A Strategic Defense Against Fraud

Third-party Risk Management (TPRM) plays a vital role in fraud prevention by addressing risks that originate outside the organisation. Vendors, suppliers, and partners can unknowingly expose companies to fraud, making proactive oversight essential. TPRM helps identify vulnerabilities early through due diligence, helping ensure compliance with legal and ethical standards, and enabling continuous monitoring for red flags. TPRM as a strategic defense—not just a preventive measure— protects organisations’ reputation and strengthens resilience against evolving threats.

Sidhartha Gautam

Partner and Lead - Auto & Industrial Manufacturing Sector, Risk Advisory

KPMG in India

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One act of fraud can destroy years of trust, because in governance, reputation compounds like interest: earned slowly and lost instantly. Fraud doesn’t sit in systems; it hides in silence.

Rajesh Bathija

Partner, Forensic Managed Services

KPMG in India

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When organisations conduct thorough evaluations of top-level executives, whether for hiring or strategic partnerships, they rely on human judgment and experience. Artificial intelligence (AI) doesn’t replace these human qualities, instead it strengthens them. Instead of taking over the process, AI acts as a smart assistant, working side by side, analysing data, detect subtle patterns and flag anomalies. This collaboration between human expertise and AI driven analysis leads to informed decisions reducing blind spots enhancing the quality and depth of executive due diligence.

Bidyut Chakraborty

Partner

KPMG in India

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India’s steel sector stands at a pivotal juncture – embracing sustainable scrap management is not just an environmental imperative, but a strategic lever for competitiveness and resource security. By scaling up domestic recycling, investing in advanced processing, and fostering formalised value chains, we can bridge the scrap deficit and lead the transition to green steel.

ndia’s push for decarbonisation and circularity is driving a surge in ferrous scrap demand. Yet, systemic value chain gaps – fragmented collection, limited processing technology, and informal workforce – are widening the scrap deficit and increasing import dependence. Policy momentum is strong, but on-ground impact remains limited. The way forward lies in scaling up organised recycling infrastructure, leveraging digital traceability, and fostering public-private partnerships to unlock the full potential of sustainable steelmaking in India..

Vipul Jain

Partner - Forensic Managed Services, Third Party Risk Management

KPMG in India

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Safeguarding Credibility Through TPRM

Every vendor, supplier and partner brings both opportunity, and risk. Understanding who we work with, what they stand for, is crucial. Third Party Risk Management (TPRM) does just that. One of the best ways to protect trust, credibility, and relationships is through risk-based third party reviews - helping ensure our supply chain is secure and maintain steady operations.
Fraud as a Core Business Risk

Engaging with senior industry leaders in Gurugram reinforced how much the conversation around fraud has evolved. It’s no longer seen as just a compliance or audit concern — it’s now recognised as a core business risk that cuts across operations, reputation, and technology.

There’s growing recognition that safeguarding integrity goes far beyond policies and controls. It’s about organisational culture, smart use of data, proactive employee and vendor engagement, and above all, the leadership conviction to stay ahead in a constantly shifting risk landscape.

Ankit Mishra

Partner – Forensics Managed Services

KPMG in India

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When employees understand the risks, recognise the consequences, and respect the organisation’s fraud prevention controls, they become empowered to identify and report suspicious activity. This proactive vigilance reinforces internal trust, promotes transparency, and builds long-term resilience across the organisation.

Juzer Miyajiwala

Partner – Office Managing Partner - Pune

KPMG in India

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With fraudsters exploiting AI, cloud, and automation, organisations must respond through awareness, a strong speak-up culture, leadership messaging, zero-tolerance actions, continuous monitoring, and AI-driven controls.

Atul Gandhi

Partner - OMP
KPMG in India

Organisations are becoming increasingly sensitised to issues of fraud and its far-reaching implications. While most organisations have encountered fraud in some capacity and remain intent on preventing it, the future will be defined by a broader understanding of ROI - encompassing not only return on investment, but also return on intention.

Gagan Budhiraja

Partner, Forensic-Inv
KPMG in India

Cyber fraud doesn’t knock, it impersonates. In today’s India, a face can be faked, a voice can be cloned, and a signature can be simulated but truth leaves digital footprints. From fake voice messages, clones SMS and invoices to rogue insiders, we’ve seen trust weaponised against society at large. At KPMG in India, our mission is to follow such footprints and turn every breach into a blueprint for resilience for our clients.

Vikram Srinivas

Office Managing Partner, M&A Consulting
KPMG in India

There is nothing called being ‘over cautious’ in today’s world of sophisticated fraudsters and scammers. Staying one step ahead of fraudsters requires a combination of layered checks and balances together with extensive use of technology, constant vigilance, continuous awareness and sharing of best practices within the industry. KPMG’s Fraud awareness week is our nation-wide initiative to bring the business community together and build collective momentum in mitigating the risk of fraud.

Sanjay Narvekar

Partner - MS-PEBC
KPMG in India

Empowering Stakeholders to Uphold Integrity

The most reliable sources of information about potential wrongdoing within an organisation are often those directly connected to it—employees, management, suppliers, subcontractors, and other stakeholders. Therefore, it is imperative for any organisation to establish and maintain an effective, accessible, and trustworthy reporting mechanism. Such a system not only encourages transparency and accountability but also fosters a culture where ethical conduct is actively supported and safeguarded
Building Resilient Background Screening Frameworks"

As employee-related fraud continues to evolve, it is imperative for organisations to engage the right partners to design and implement effective background screening controls. A resilient compliance framework not only safeguards against internal threats but also cultivates a transparent and trustworthy workplace culture—one where fraud struggles to take root

Vinay Gulati

Partner - Finance Advisory
KPMG in India

With rapid digitisation, cyber fraud risks are soaring. To counter this, organisations must continuously strengthen controls, enhance processes, and foster vigilance and awareness.

Rajan Vasa

Senior Advisor, OMP
KPMG in India

Ethical practices and strong fraud risk management are not just safeguards—they are the driving force behind accelerating organisational success. Fraud is prevalent across sectors, functions, and organisations of all sizes, making it critical for businesses to acknowledge these challenges openly and work toward effective prevention and mitigation strategies.

Navneet Mathur

Associate Partner, MS-CI
KPMG in India

Integrity due diligence has transitioned from a discretionary exercise to a strategic necessity in today’s M&A environment, driven by high-value transactions and increased regulatory scrutiny. A robust due diligence framework helps acquirers to assess the reputation and conduct of key stakeholders, examine compliance histories, and evaluate the cultural and ethical alignment of the target organisations.

Ritesh Goyal
Rajosik Banerjee

Ritesh Goyal

Partner, Audit-FS
KPMG in India

Navigating RBI's ECL draft circular, insights, challenges and opportunities

RBI’s Expected Credit Loss (ECL) draft directions highlight a significant move from the incurred-loss model to a forward-looking provisioning framework.

Key takeaways:

Regulatory intent – Strengthening credit risk management, aligning with global best practices, and driving greater transparency in financial reporting.
Industry view – A welcome transition from delayed risk recognition under IRACP norms to predictive models leveraging PD, LGD, and EAD for early detection and resilience.
Clarifications awaited – Treatment of comparative periods for disclosures, calibration of prudential floors and governance for model validation, to name a few.

Despite challenges in data readiness, model risk management, SICR assessment for legacy portfolios, and capital impact during transition confidence remains high as institutions gear up for this transformation. This shift also opens new opportunities: enhanced capital planning, improved risk sensitivity, and global comparability.

One clear takeaway is that ECL is not just about compliance—it’s a strategic evolution toward resilience and proactive risk management.

Rajosik Banerjee

Partner and National Head, Risk and Finance Advisory

KPMG in India

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Practical challenges and industry readiness

Embracing the new RBI directions for asset classification, provisioning, and income recognition is crucial for our financial stability.. By implementing forward-looking Expected Credit Loss (ECL), robust control frameworks, and mandatory disclosures, we are setting the stage for a resilient and transparent banking system. Emphasis lies in high quality granular data, consistent definitions, appropriate modeling, aligning relevant system and operations which will be key to the implementation.

Ritesh Tiwari

Partner, National Leader - Governance, Risk & Compliance Services, National Leader - Board Leadership Center in India

KPMG in India

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Continuous Control Monitoring (CCM) is helping companies change gears from reactice checks to proactive, data-driven oversight that flags risks as they emerge. CCM represents a fundamental shift in mindset where controls become living sensors embedded within business processes. These sensors continuously assess performance and risk in real time, making them part of the organisation’s operating rhythm.

Rahul Singhal

National Co-Head - Cyber Assurance

KPMG in India

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Generative AI brings immense promise, but trust will depend on going back to the basics. It starts with solving the right problems, using the right data, and understanding the risks that extend beyond security. True confidence in AI comes from human validation, cross‑functional collaboration, and compliance with emerging regulations. Building trusted AI is not a choice for tomorrow, it is a responsibility for today.

Manoj Kumar Vijai

Non-Executive Chairman, Office Managing Partner - Mumbai

KPMG in India

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Geopolitical shifts are forcing CFOs to rethink supply chain architecture. From satellite facilities to optionality in logistics, the focus is shifting from scale to agility. CFOs must lead with long-term commitment, especially in volatile global environments. India’s strength won’t come from competing on cost; it will come from engineered products, process innovation and logistics. Risk management, scenario planning and treasury coordination are now central to financial leadership.

Amrish Chaudhary
Rahul Chandran

Amrish Chaudhary

Partner, CFO Advisory, Finance & Accounting Managed Services

KPMG in India

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As the regulatory and reporting landscape continues to evolve, it's essential for finance leaders to stay ahead of the curve. This quarter, we focused on the global adoption strategies for IFRS 18, SEBI’s enhanced framework on Related Party Transactions, and key tax updates including developments in the Direct Tax Code and GST.

Rahul Chandran

Partner, Finance Advisory
KPMG in India

IFRS 18 marks a significant shift in how financial performance is communicated. During the session, we explored practical challenges to this global adoption, key transition considerations, and how organisations can align their reporting frameworks to meet evolving stakeholder expectations.

Vinay Gulati

Partner, Finance Advisory
KPMG in India

With a rehash of the income statement and significant new disclosure requirements including MPMs (Management defined performance measures), IFRS 18 will be a strategic shift in how performance is communicated to the key stakeholders. Early planning could help in unlocking better insights.

Manoj Kumar Vijai

Non-Executive Chairman, Office Managing Partner - Mumbai

KPMG in India

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Inspiring to see so many leaders from the financial services tech and digital world come together with clarity and purpose. Financial services is transforming fast, and future readiness will depend on how we continue to connect, collaborate, and lead with intent. True to its theme, the third edition of the huddle was more than an event; it was a step toward building institutions truly prepared for what lies ahead. We will aim to continue this journey together.

Kunal Pande

National Leader - Cyber, Risk and Compliance Services

KPMG in India

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Had an enriching exchange with S. Ganeshkumar Sir on the evolution of India’s financial sector over the past three decades. We agreed that digital innovation must continue to enhance convenience and value, while keeping interoperability, customer-centricity, affordability, and resilience at the core. Regulatory initiatives - like sandboxes and directional guidance - play a pivotal role in balancing innovation with systemic safety and stability. Crucially, sustained collaboration among regulated entities, fintechs, regulators, and government is key to accelerating inclusive, well-calibrated financial transformation.

Supreet Sachdev

Office Managing Partner, Bengaluru

KPMG in India

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UPSI has become increasingly critical in today’s corporate and regulatory environment. In an era of heightened scrutiny and fast-paced market movements, the way organisations identify, manage, and safeguard sensitive information can significantly impact their reputation, stakeholder trust, and legal standing. Organisations need to strengthen the key pillars of people, process and technology, and implement systems and controls to effectively safeguard themselves.

Kunal Pande

National Leader - Cyber, Risk and Compliance Services

KPMG in India

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Crisis management: Business continuity management metrics and methodologies

An organisation’s ability to respond effectively to crises is not only dependent on up to date and tested capability but also people confidence on the same. The session focused on how institutions can move beyond documented business continuity plans and instead build a metrics-driven, leadership-enabled continuity framework. The discussion brought out how measurable metrics on

IT setup health
Disaster recovery and data availability
Regular scenario-based drills, and
Readiness of people, including leadership

go a long way in sustaining preparedness and building confidence towards prompt and effective response.

Manoj Kumar Vijai

Non-Executive Chairman, Office Managing Partner - Mumbai

KPMG in India

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This Internal Audit awareness month, it is time to recognise the growing significance of Internal Audit as a strategic enabler in an era of volatility and transformation. Internal audit is undergoing a profound transformation. With stakeholder expectations growing and emerging risks—from geopolitics, cyber threats to ESG - reshaping the business landscape, the role of internal audit has expanded far beyond traditional assurance.

The bar for governance and risk management continues to rise, and Internal Audit is central to meeting it with agility, independence, and a deep understanding of the business. Today, it’s about delivering strategic insights, anticipating risks, and enabling resilience. Powered by technology and AI, internal auditors are now equipped to provide sharper foresight, real-time assurance, and greater impact. From identifying gaps to being trusted advisors, internal audit is more relevant than ever - driving integrity, transparency, and value in a rapidly changing world.

Ritesh Tiwari

Partner, National Leader - Governance, Risk & Compliance Services, National Leader - Board Leadership Center in India

KPMG in India

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At its core, Internal Audit is about enabling better decisions, identifying risks before they escalate, and adding value across the organisation. We are partners in performance — not just compliance.

The role of Internal Audit has evolved – from staring in the rearview mirror to crystal gazing and predictive analytics. No longer simply reviewing processes, Internal Audit now serves as the conscience of the Board and Management, offering insights on strategic matters and emerging risks. Today we are stepping into areas like cyber risks, ESG and fraud – and becoming a key voice in boardroom discussions.

Our team is made up of critical thinkers, tech-savvy analysts, and trusted advisors who care deeply about doing the right thing — and doing it well. This month, we are proud to spotlight the work we do, the impact we drive, and the people who make it happen.

Neeraj Bansal

Partner and Head India Global

KPMG in India

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Built on governance

India’s real estate landscape continues to evolve and grow at a healthy pace. From new urban skylines to massive infrastructure rollouts, it’s become one of the key drivers of economic transformation. And as the sector continues to scale, the importance of transparency and accountability becomes more critical.

Behind high-rises, townships and headline investments, lies a deeper foundation - trust. And that’s where internal audit comes in.

In real estate, bricks, leases and projects rests on a foundation of governance. Internal audit helps keep that structure sound. We review areas from regulatory compliance to capital project risks and lease accounting. Our job is to protect value. This month, as we bring more attention to internal audit awareness, we recognise the internal audit professionals helping real estate firms stay accountable, compliant and trusted by stakeholders.

Rajosik Banerjee

Partner and National Head, Risk and Finance Advisory

KPMG in India

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In today’s complex environment, risk isn’t something to avoid - it is something to navigate with confidence. And that’s exactly where Internal Audit steps in. Internal Audit is evolving - from a control-centric function to a strategic enabler. It helps organisations anticipate change, challenge the status quo, and adapt with agility. As Risk Advisory professionals, we see firsthand how Internal Audit connects the dots across risk, governance, and innovation.

Vikash Somani

Partner

KPMG in India

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The bedrock of every successful business relationship is trust. By strengthening governance, managing risks, and seamlessly integrating controls into business operations, Internal Audit plays a vital role in safeguarding and enhancing trust in a business. Collaborating closely with clients across diverse sectors, I consistently observe the increasing demand for forward-thinking and insight-driven Internal Audit functions. This month, let's celebrate the profound impact these functions have in fostering trust and value creation in today’s dynamic business environment.

IIA India Hyderabad Chapter

In an age of AI and automation, the differentiator for internal auditors isn’t just about mastering the tools – its about cultivating the right mindset. The audit toolbox is evolving-fast. From robotic process automation (RPA) to advanced analytics and now, agentic AI-automation isn’t just enhancing audit efficiency; it is expanding the very scope of what auditors can do.

But technology alone is not the differentiator. What matters is:

Knowing what to automate
Interpreting the ‘why’ behind the data
Collaborating across functions to generate actionable insights
Being both AI-literate and business fluent while maintaining human judgment at the core

As controls and compliance become increasingly tech-driven, the human edge will come from how auditors build trust, tell stories with data, and navigate ambiguity with confidence. It’s not just about being audit-ready – it’s about being future-ready.

Hoshnar Kapadia

Partner – Risk Advisory

KPMG in India

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The real tension isn’t between assurance and influence. It’s between what stakeholders want from internal audit and what internal audit is meant to uphold. Striking that balance - especially in financial services where governance failures have systemic consequences - demands more than just process. It demands courage, consistency, and constructive mindset.

Hear from the experts

Regulations address systemic risk at the source. For state government loans, norms hinge on exposure and capital adequacy. Guarantees ease exposure limits but still require capital. The NBFC draft is unlikely to change outcomes in the near to mid-term.

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Manoj Kumar Vijai says AI, innovation and leadership will redefine India’s banking sector at the BT Banking & Economy Summit

Watch on Business Today

Insights from the new 2026 KPMG global TPRM study

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Internal audit is not just about looking back but looking ahead. With AI and advanced analytics, we can deliver real-time insights and predictive foresight. The auditor's role is evolving into a strategic advisor—shaping future-ready businesses.

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Risk and Compliance – Trends and updates

Risk and Compliance Update - Sixth Edition, March 2025

Concise updates on risk and compliance for Audit heads, Risk officers, CFOs-reflecting transparency, sustainability, and governance.

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Risk and Compliance Update - Fifth Edition, December 2025

Key highlights and developments on risk and compliance for risk leaders to interpret signals early and demonstrate reliability under concurrent stress.

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Risk and Compliance Update - Fourth Edition, November 2025

This edition shares insights on regulatory changes and trends for leaders as they navigate an interconnected risk landscape and refine governance strategies.

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Risk and Compliance Update - Third Edition, August 2025

Concise updates on risk and compliance for Audit heads, Risk officers, CFOs-reflecting transparency, sustainability, and governance.

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Risk and Compliance Update - Second Edition, May 2025

Concise and relevant updates on critical risk and compliance matters for Audit heads, Risk officers, CFOs, and key decision-makers.

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KPMG Board Leadership Center

KPMG in India’s Board Leadership Center (BLC) benchmarks leading practices in corporate governance and delivers actionable thought leadership, peer council, and networking forums to board members. It engages directors and business leaders through programmes and perspectives, drawing on global insights to promote governance across risk, strategy, talent, technology, compliance, financial reporting, and audit quality.