Integrated GRC includes more vital business perspectives, each providing a check and balance on harnessing strong management disciplines to lift up corporate agility and maturity.
The governance is an organizational capability for risk mitigation, improving organizational effectiveness. Corporate risk management ensures you have the right level of risk control; corporate compliance enforces laws and regulations. That’s why they usually have been put into the overarching GRC (Governance, Risk, Compliance) umbrella.
Governance: Fundamentally, governance is about enforcing decision effectiveness, cross-functional management alignment, improving transparency and accountability, getting people, culture, process, and performance right. Strong corporate governance needs to have direct links to each crucial business management discipline and its processes to make sure that management is doing its job properly.
Risk management: Risk management permeates across organizations and should not be a separate function at all. Enterprise wide risk management as a discipline with consistency, intends to manage enterprise risk systematically, streamlining business processes to ensure you have right risk management controls, develop an effective risk framework, and set the right risk appetite for improving enterprise risk management maturity.
Compliance: Compliance Management covers all relevant laws, regulations, internal standards and policies. At the strategic level, compliance requires a forward-looking strategic perspective to deal with unprecedented uncertainty and ambiguity, to deliver real-time accountability and transparency across regulatory areas. It stands to reason to assume that the laws, regulations, internal standards and policies imposed on- or adopted by a company are the starting point for the definition of any underlying operational and system process to remain compliant.
Governance today as a discipline is a living breathing entity which continually requires stroking and attention. Some old school of management thinks GRC is only for the bottom line, it is actually an enabler for business growth and innovation. Governance, risk and compliance should work really closely in order to create value. Integrated GRC includes more vital business perspectives, each providing a check and balance on harnessing strong management disciplines to lift up corporate agility and maturity