Governance Risk Compliance Explained

1. Governance Risk Compliance Strategy is a very important prerequisite in running a very well-coordinated business organization. The strategy differs from situation to situation and it’s basically tied to the goals, aspiration and desires of the company. One of the strategies needed by a company to manage the broad issues of corporate governance, enterprise risk management and corporate compliance with regard to regulatory requirements is Governance Risk Compliance. GRC is essential in managing the broad issues faced by an organization. Each and every organization faces a lot of issues ranging from governance, risk management and other frivolities, and if the organization is not careful and not up to the game, the weight of the requirements will eventually consume the organization and essentially close down or will be forced to merge with a more disciplined organization. GRC helps to plug all the loopholes, guarantee a secure working environment and helps in managing the broad affairs of the organization. Giving a blow-to-blow analysis of GRC, it is essential to highlight the keywords in this phenomenon • Governance- This is the effective, ethical management of a company by its executives and the managerial levels Risk- This is the ability to effectively mitigate risks that can hinder an organization’s operations or ability to remain competitive in its market Compliance- A company’s conformance with regulatory requirements for business operations, data retention and other business practices • • Having understood the basic words embedded in the phenomenon, it is thus essential to try to dab into the basic definitions that experts and scholars have given to it. Though quite a lot of experts and GRC vendors have over the years failed to come together to agree on a single definition of GRC, the Open Compliance and Ethics Group released a comprehensive definition that is quite acceptable by most people in the industry. The OCEG defines it in its GRC Capability model, Red Book 2.0 as a system of people, processes and technology that enables an organization to understand and prioritize stakeholders’ expectation, set business objectives that are congruent with values and risks, achieve objectives with optimizing risk profile and protecting value; operate within legal, contractual, internal, social and ethical boundaries; provide relevant, reliable and timely information to appropriate stakeholders and also to enable the measurement of the performance and effectiveness of the system. GRC Solutions and Service Organizations that are interested in managing the effectiveness of their Governance, Risk and Compliance strategy in monitor and measure ways are always advised to look towards GRC businesses, policies and software solutions. This is solely because GRC strategies span the entire organization. These tools and policies require management and coordination across numerous departments in an enterprise including IT, management, security, compliance and auditing.

2. GRC is a multifaceted and broad phenomenon that can be used in so many ways, depending on how the organization decides to tweak it. GRC also helps organizations tackle broad issues that may be faced by the company, although governance may be the main idea behind it. It can also help in areas of information and technology, human capital and all aspects needed in running an effective organization. So, whether its guidance at board, C-level, or enterprise risk and compliance level or other aspects, GRC helps to • • • Improve board effectiveness Sets the right tone and make effective decisions Accesses and implements ethics programs, training, change management, anti –fraud programs and monitoring Enterprise Risk Management • • Strategic risk management – Creating and protecting value from strategic risks Design, implement and maintain a common risk infrastructure by leveraging people, process and technology transformation opportunities Establish organization-wide consistency while simultaneously addressing different and unique functional needs Identify, measure, manage, monitor, review and report on risks Integrate activities to effectively manage risk and compliance-related activities • • • Corporate Compliance and Regulatory • • • • Compliance program design and control testing Compliance monitoring, assessment and effectiveness Regulatory consulting Specialized compliance services like product safety, direct and indirect tax compliance and other packages Organizations tend to reach a size where coordinated control over GRC activities is required to operate efficiently and orderly. Each of the basic tenets of the discipline creates information of value to the other two, and all three disciplines impacts the same fortechnology, people, processes and technical know-how. Substantial duplication of tasks evolves when governance, risk management and compliance are managed independently. Overlapping and the duplication of the phenomenon tends to negatively impact both operational costs and its matrices. For example, each internal service might be audited and assessed by multiple groups, on an annual basis, creating enormous costs and disconnected results. A disconnected GRC approach will also prevent an organization from providing real-time executive report. The services suppose that this approach, just like a badly-planned transport system, every individual route will operate, but the network will lack the qualities that allow them to work together effectively.