GRC stands for Governance, Risk and Compliance which, in broad strokes, are the practices and procedures implemented by a company to facilitate its organisational objectives. Risk management, tracking of regulatory changes, aligning the aforementioned practices and procedures with strategic goals, and compliance are all components of GRC.
The primary purpose of GRC is to eliminate the silo mentality wherein various departments of a company become reluctant to share information with other departments. GRC also reduces risks and, hopefully, costs while rooting out and eliminating redundancies and improving the ability of management to make sound decisions.
The 3 aspects of GRC explained
Let’s take a closer look at each aspect of GRC.
Governance: Governance deals with aligning the processes and policies of an organisation in such a way that they facilitate the overall strategic objectives of the company or institution. Good governance ensures all departments are in sync and everyone is rowing in the same direction.
Risk management: Risk management is a multifaceted process that includes identifying and quantifying risk, assessing its potential impact and developing and implementing mitigation efforts. Effective risk management entails continual monitoring and reporting of ongoing and emerging risks.
Compliance: Compliance refers to various legal and regulatory requirements established by governmental and industry bodies, as well as internal corporate policies. In regard to GRC, compliance entails implementing procedures to monitor and ensure compliance with edicts such as the GDPR.
Why is GRC Important?
Companies sometimes struggle to integrate their long-term strategic vision with the day-to-day operations of their business. In addition, they are sometimes undermined by inadequate efforts at identifying and mitigating risk. Allowing risks to fester eventually leads to a breakdown in the effectiveness of internal systems and even organisational failure.
GRC combines governance, risk management and compliance into a single, unified structure with a sweeping mandate to instil order, improve communication, eliminate waste and prevent practices that had been acting counter to the long-term goals of the organisation.
At FinregE, we specialise in compliance management, risk mitigation and corporate governance solutions for businesses and organisations. Our GRC solutions enable you to integrate GRC principles and practices into the fabric of your organisation in order to facilitate your strategic vision.
We have more than 20 years of experience in regulatory change monitoring and implementation and in the development of business solutions that ensure good governance, reduce corporate risk and ensure compliance with laws and regulations originating both at home and abroad. To learn more about our GRC solutions call FinregE at +442045370860, or email firstname.lastname@example.org.