In the past, Alan’s company usually approached areas of Governance, Risk and Compliance (GRC Software) as silos – operational risks, market risks, legal & regulatory risks and so on. The risks were addressed with no correlation to each other.
Today on the other hand, Alan has realized the importance of building a more integrated GRC strategy by infusing the company’s practices, judgments and culture.
Like Alan said, a GRC initiative involves secretarial functions, ethics & corporate social responsibility, credit and market risks, operational risk, finance, audit, compliance and so on.
Companies require a sustainable process and infrastructure for GRC needs that are becoming increasingly time consuming. Further, businesses must gauge their risk and compliance management exercises on a continuous basis – with business speeding up, sporadic momentary assessments are no longer sufficient. The dynamic nature of any business demands that the organization addresses GRC collaboratively and continuously.
The multiple roles in an organization need to function together in an integrated framework. To achieve that, a common framework must be in place. It will help understand where changing business functions fit in and how they can cohere with one another. Such consistency makes it easy for the organization to focus on adversities and seize opportunities.
A successful GRC program relies on building synergies among different functions of the organization to maximize efficiency, reduce overlaps and get all the different functions to buy-in through their contributions. The GRC database is continuously updated and reports generated to senior management and the board by Internal Audit, Risk and Compliance are kept in harmony.
Transparency across key performance and risk indicators (KPIs and KRIs) is crucial to monitor organizational health, seize opportunities and ward off or alleviate disasters. Corporate performance management is closely related to risk management. When handled with adequate transparency, performance and risk management can go hand in hand.
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