The capabilities that help an organisation address uncertainty, act with integrity and achieve objectives reliably using a risk-aware culture.
Governance, risk, and compliance (GRC) provide organisations with the confidence and tools they need to operate their businesses without overstepping regulatory bounds. Too many organisations lack well-defined GRC programmes or have the tendency to neglect funding them. To succeed, organisations must improve resilience and prepare for disruption to remain relevant and deliver value.
The business case for GRC must focus on improving risk visibility, aligning GRC efforts to business priorities and delivering forward-looking insights to help firms act quickly and decisively.
Governance: The frameworks of an organisation’s activities and whether or not they are aligned with business objectives. Activities include processes, structures and policies that are meant to manage and monitor company activities.
Risk: A sustained process of addressing risks, mitigating risks through controls and providing assurance that the risks are managed according to policies. This includes measurement of risk, assessment, retention, monitoring and identification.
Compliance: Ensuring that activities within an organisation operate in a way that is aligned with laws and regulations.
Integrated GRC, or integrated risk management, is a wider-scope, enterprise-wide approach that equips organisations with the ability to monitor, manage and act on different risks in real time. Integrated risk management is an important aspect of a risk-conscious organisation that can improve performance and decision making.
Managers are capable of making informed, risk-based decisions to stay in alignment with business objectives.
Organisations gain a better understanding of risks and the impact of those risks on a bottom line. This is shared across departments and business units, which can help in the breaking down of silos and unnecessary duplication.
GRC is united in a single platform to allow the automation of processes. Workflows are simplified, documentation can be stored and there is the creation of a more standardised framework.
Practitioner expectations are evolving so that an integrated approach to managing risk is desirable.
Effective GRC must:
Effective GRC establishes an approach to ensure that the proper people get the necessary information when it is needed, objectives are established and the right controls are put into place to address uncertain situations and act. A GRC process done right yields the following benefits:
Although there is no single, one-size-fits-all GRC solution capable of ensuring effective governance, risk and compliance across every organisation, most GRC solutions do share common components. Below are some essential functions and factors found in most GRC platforms.
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