Co-Founder and Global Head of Accounting and Reporting Consulting at Uniqus Consultech, Sandip Khetan, noted that every startup is focused on building technology on the customer side, but isn’t equally focused on building technology for the internal systems, processes, and compliance.
Khetan said that companies need to ensure optimal allocation of resources and capital, towards both growth and internal governance. One can chase growth and achieve profits in the short term, but if there is an imbalance in allocation, the business is bound to collapse in the long term, he said.
“When businesses run ahead of the processes, and if the process breaks down, it disrupts the business significantly, and the cost of that disruption is far higher than the amount of capital that may have been required to establish a GRC (governance, risk, and compliance) system,” he further said.
At times, a management override of controls can raise red flags.
“So much that it reaches an extent where one cannot salvage anything,” he added.
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