With the changing global and domestic financial markets scenario, the risks in operating businesses have increased gradually over the last few decades. The complexity of managing financial actions and procedures that support conformity to government rules, industry regulations and internal policies lead to organizations taking a few risks which often result in inaccurate financial models and a chance of getting tangled in the complicated world of regulatory bodies. 

Many businesses see handling financial and legal risks, and following extensive compliance norms as a burden, cost of which can be spent somewhere else. However, the financial regulations and statutory bodies have become tighter. Failings in risk and compliance management mean chances of penalties and tougher norms to follow while infusing more capital or expanding the business. Failures in managing financial risks also impact competitiveness.