Mumbai, Jan 30 (PTI) The increasing cost of regulatory compliance has become a key challenge that corporates are grappling with, according to a senior industry official. Also Read - Steve Smith's Wife Dani Willis Unhappy After Being Ranked Below Candice Warner in 100 Most Powerful Australian WAGs: Report

Most companies are conscious of the fact that non- adherence to regulatory compliance can attract heavy penalties, which can impact their businesses, and so keep it as one of the top agendas, he added. Also Read - Live Cricket Score Ind vs Aus 4th Test Day 4 Today's Match Live Updates Gabba, Brisbane: Siraj Removes Smith, Green Shifts Gears; AUS Eye Quick Runs

“One of the key challenges that CEOs today face is the rising cost of compliance, which is really increasing for every organisation,” Reliance Industries chief insurance officer Saurabh Verma said at a panel discussion organsied by the Indo-American Chamber of Commerce. Also Read - Weekly Astrological Prediction from Jan 18-Jan 24: A Difficult Week for Aries, Scorpio and Capricorn

He said it is the responsibility of the board to demonstrate that there is a proper risk management structure in place in their companies.

“The board has to review risk management policies at every intervals and make sure that it gets implemented and monitored,” he said.

For any large corporate, risk management, developing a risk management philosophy and creating the right lines of defenses is very crucial, Verma said, adding with corporates operating across the borders, it is more important to identify, quantify and address the risks.

He said there are insurance products available that meets the demand of corporates, but a lot needs to be done in terms of customised policies.

“For corporations where the risks keep changing and risk dynamic and complexities keep changing, our market has to pace up with that,” he said.

Global insurance players, Lloyd’s India country manager Shankar Garigiparthy said geopolitical and security threats such as civil conflicts, interstate conflicts, terrorism and social unrest, account for almost 60 percent of risk for our cities.

This is published unedited from the PTI feed.