Every organization must evaluate and address risk irrespective of industry and size. Businesses must also comply with government and industry regulations to manage people, processes, and technology. However, often companies work in silos leading them to face several challenges. Here, governance, risk management, and compliance, also known as GRC, play a crucial role in offering solutions to these challenges. In this article at Chartered Governance Institute UK & Ireland, Simon Ashby explains how governance compliance provides a structured, agile, and integrated approach to effective risk management.
Capabilities of Governance Compliance
“The type of risks that organizations face are many and varied. Climate change, compliance, environmental pollution, financial crime, health and safety, information security, quality and performance, shareholder activism, and organizational solvency, to name but a few,” says Ashby. As a result, an organization’s risk profile can be complex, diverse, and ever-changing. Effective risk management should include stakeholder communications, risk forecasting, security risk mitigation, and more. So, how can GRC improve internal controls, corporate governance, and risk management?
Experts believe that governance compliance best practices enable organizations to thrive on risk. Whether implementing new tech solutions, expanding its geographical footprint, or handling the evolving regulatory landscape, a robust GRC framework empowers an organization to accelerate its growth.
What Are the Compliance Benefits?
The integrated approach to GRC brings financial benefits to organizations. Businesses can cut unnecessary spending, and the more explicit focus will help them boost revenue simultaneously.Establishing a synthesized process would help businesses achieve their goals by reducing the inefficiencies, miscommunications, and other perils of a siloed approach to governance, risk, and compliance.Having too many procedures will reduce employees’ productivity. A holistic approach to GRC cuts down on paperwork and bureaucracy. This will further boost staff’s productivity and morale.
The author explains that non-compliance can have profound implications, including penalties, imprisonment of the key staff, and the closure of the organizations. Furthermore, it can lead to legal disputes, loss of reputation, and liability claims.
To learn more about establishing a robust governance compliance framework, click on https://www.cgi.org.uk/blog/frameworks-risk-management.
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