Reputation management with key stakeholders is paramount for business and organisational relationships. Unfavourable circumstances, like internal employees stealing confidential data, the sales force being involved in price fixing, or conflicts of interest identified between employees and vendors, can lead to a loss of reputation, erode organisational value, and undermine market confidence.

When there is a crisis, there needs to be a mitigation mechanism to address it, starting with fact-finding and drawing up an action plan for redressal. Section 447 under the new Company Act 2013 provides the definition of fraud and makes extensive provision for penalising fraudulent activities. Due to this, company-appointed auditors and independent directors are now seeking to implement proactive fraud-prevention solutions and avoid post-incident remediation processes.