Introduction:
Did you know that India’s RegTech market is set to grow by nearly 38% annually to reach over US$354 million in 2024? FinTech Futures
In this dynamic environment, our business landscape is shifting faster than ever before — and so are the risks. At Delphi, we firmly believe that compliance and risk management aren’t just back-office obligations, but strategic levers for business growth, reputation, and resilience.
As we navigate the regulatory tides of 2025 in India, we must ask ourselves: Are we ready for what’s coming? In the pages that follow, we will explore the terrain of compliance, the nature of emerging risks, and the steps we can take together to build a future-proof enterprise.
What We Mean by Compliance & Risk Management
In our view, compliance refers to the process of aligning our operations with laws, regulations, standards and ethical practices. Risk management, on the other hand, is about identifying potential threats to our objectives (financial, operational, reputational) and proactively mitigating them.
In a country like India—where regulatory layers span national, state, and even municipal levels—these two disciplines become tightly interlinked. Failing compliance often is the manifestation of unmanaged risk.
The Unique Regulatory Landscape in India
India’s regulatory environment presents both opportunity and complexity. For example, one analysis notes that the regulatory framework for Indian businesses is described as a “minefield” due to overlapping laws, frequent amendments, and disparate jurisdictions. The Economic Times+1
We need to recognise several features:
- Multiplicity of authorities: e.g., Reserve Bank of India (RBI), Securities and Exchange Board of India (SEBI), Insurance Regulatory and Development Authority of India (IRDAI), among others. resources.probe42.in
- Frequent regulatory changes. For example, over 3,500 regulatory changes were reported in one year. Team Lease Regtech
- Sector-specific rules for banking, manufacturing, fintech, ESG, and more.
Key Challenges We Face in Compliance & Risk
When we reflect on our environment here in India, some recurring challenges stand out:
- Resource and expertise gaps: Many organisations lack dedicated compliance teams and operate with minimal tools. Team Lease Regtech+1
- Data and digitisation issues: Manual, spreadsheet-based compliance tracking remains common, increasing risk of oversight. Team Lease Regtech
- Regulatory complexity and cost: For instance, MSMEs may face over 1,000 separate obligations and substantial costs in trying to comply. The Economic Times
- Emerging risks: Cyber threats, ESG disclosure obligations, dark-web exposures and global sanctions are moving fast. strategic-risk-global.com+1
Why Compliance & Risk Are Strategic, Not Just Operational
At Delphi, we argue that when done well, compliance and risk management contribute to:
- Enhanced stakeholder trust — customers, investors and partners increasingly expect transparency and ethics.
- Operational efficiency — strong processes often reduce errors, fines and downtime.
- Competitive advantage — companies that embed agile risk practices often outperform peers.As one source puts it: “Regulatory compliance is not simply about abiding by regulations; it’s about creating a stable, trustworthy, and future-oriented enterprise.” @Ricago
Building a Robust Compliance Framework — Our Approach
Here are the components of the framework we recommend:
- Governance & leadership buy-in: Boards and senior management must own compliance.
- Risk identification & assessment: Systematically map our risk universe—compliance, operational, cyber, ESG, etc.
- Policies & procedures: Clear, well-communicated guidelines across functions.
- Training & culture: Equip our teams to understand and act with compliance in mind.
- Monitoring & reporting: Use key risk indicators (KRIs), audit trails and dashboards.
- Continuous improvement: Because the regulatory landscape never stays static.
Leveraging Technology & RegTech to Stay Ahead
Technology is a critical enabler in compliance and risk today. Consider:
- The RegTech market in India projected to grow at a CAGR of ~23.9% between 2024-29. FinTech Futures
- For us, this means automating tasks like regulatory tracking, document management, alerts for changes, and risk analytics.
- Bold: Using AI and machine-learning enabled tools for detection of compliance gaps is becoming a must. EY
Integrating Risk Assessment Across Our Enterprise
Risk isn’t siloed—compliance, cyber, operational, strategic—they all interlink. We emphasise:
- Setting up a risk register that includes compliance risk.
- Integrating with our IT, HR, legal and business-unit teams.
- Scenario planning: what if GDPR-style data rules impact us, what if a supply-chain breach happens?
- Establishing clear escalation paths and incident-response mechanisms.
Compliance in a Changing World — ESG, Data & Cyber
Our horizon includes additional domains:
- ESG (Environmental, Social and Governance): India is pushing progressive rules. Businesses must align quickly. Baker McKenzie
- Data protection & privacy: Regulations such as the Digital Personal Data Protection Bill are shaping how we handle data. EY
- Cyber and sanction risks: With global sanctions and digital threats, compliance now covers far more than filings. Eldwick Law
Our Roadmap for 2025 and Beyond
For Delphi and our clients, our roadmap includes:
- Conducting a compliance maturity assessment by Q2 2025.
- Rolling out a RegTech platform for real-time tracking by Q4 2025.
- Embedding culture-change programmes across the organisation from mid-2025.
- Establishing quarterly review dashboards for the Board starting FY26.
- Preparing for global regulatory convergence, as Indian rules increasingly align with international norms.
Common Pitfalls and How We Avoid Them
Some pitfalls we’ve seen:
- Treating compliance as a one-time project rather than a continuous process.
- Over-relying on spreadsheets and manual processes.
- Failing to engage the business side (functions deem it a “legal issue” only).
- Ignoring emerging risk areas until they become incidents.To counter this, we embed compliance into business strategy, use technology and track metrics.
Conclusion
In today’s India, where regulatory expectations are rising and risks are evolving faster than ever, we cannot afford to remain reactive. At Delphi, we commit to being proactive—building frameworks that not only keep us compliant, but also resilient, trusted and future-ready. When we embrace compliance and risk management as strategic imperatives, we turn them from burdens into enablers of growth.
Key Takeaways:
- Compliance and risk management are strategic assets for modern Indian businesses.
- We must build robust frameworks (governance + people + process + tech) to stay ahead.
- Leveraging technology/RegTech is no longer optional—it’s imperative.
- Emerging domains like ESG, data protection and sanctions must be integrated into risk models.
- Continuous improvement and board-level oversight drive success—not one-off efforts.
FAQ:
Q: What are the main regulations Indian companies must focus on in 2025?
A: Key areas include the Companies Act, data protection laws (Digital Personal Data Protection Bill), ESG disclosures, and sector-specific rules (RBI, SEBI, etc.).
Q: How can small- and mid-sized companies manage compliance effectively without big budgets?
A: Focus on risk-based prioritisation (identify highest-impact risks first), adopt scalable RegTech tools, and outsource specialist monitoring rather than build all in-house.
Q: What role does leadership play in compliance & risk frameworks?
A: Leadership must set tone at the top, allocate resources, embed accountability and ensure compliance is integrated into strategy—not treated as an afterthought.
