Governance, risk and compliance refer to the overall governance structures, policies, technology infrastructure and remediation mechanisms that an organization builds to manage its risk and compliance obligations.
The solution has become a part of the problem
Threat of business failure and the penalties of non compliance are leading organizations to expand their governance, risk management and compliance (GRC) initiatives. The expansion of governance, risk and compliance activity has created a costly and complex web of disparate structures, policies, autonomous committees and reports in these organizations. It is thus, not uncommon to see dozens of committees dealing with different aspects of same kind of risk (some of which are even overlapping). Still, GRC has failed to prevent corporate scandals, major regulatory non-compliance issues, and most importantly failed to achieve its prime objective - to improve business performance and efficiency.
Bottom-line - Organizations keep asking themselves: What is my GRC ROI?
Integrated GRC - Convergence between governance, risk and compliance
Adopting an integrated approach for managing their governance, risk and compliance activities has become a top priority for those organizations who have witnessed time and revenue leakage in pursuing independent GRC initiatives. However most of these same organizations end up interpreting Integrated GRC in a wrong way and thus they fail to achieve expected benefits out of it. Integrated governance, risk and compliance is not a single, monolithic GRC structure with a single, one-way bottom-up reporting line. Rather, it is a mutual, two-way approach towards eradicating duplicated effort, complexity and cost and about greater communication, collaboration, and cooperation.
An integrated GRC brings together the focus on complex and disparate risk and compliance activities and directs organizational efforts more efficiently, in alignment with organizational strategy and culture. Also a more comprehensive view of risk management and regulatory compliance simplifies business processes and systems and improves control over them.
Integrated GRC offers several benefits to the organizations pursuing them, most notable ones are:
•Identifying and managing risks more quickly
•Reduced costs through reduction in duplication and identification of synergies
•Greater collaboration among stakeholders both external and internal
•Greater focus on key business processes and activities
•Identifying and responding to opportunities/ threats more quickly
•Improved control and assurance environment
•Improved financial and non-financial reporting
•Supporting business units more effectively
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