Corporate governance needs to become agiler, customized, globalized, enforcing risk intelligence and generating multidimensional business value constantly.
Due to the complex business environment with “VUCA reality, governance will remain a difficult issue for today’s business, True enterprise-level agility requires the architectural coherency that comes with a business vision realized through conscientious governance.
Agile GRC: Understanding business for the dynamic ‘complex system’ that they are, is the starting point for agile governance. Agile governance is not just a new coined buzzword, but the next governance practices for synchronizing business management. Agile governance is more holistic, because digital organization today is a dynamic, complex and adaptive system which keeps evolving. Agile governance practice should be shared cross-enterprise collaboratively to unlock business performance.
Unmanaged endogenous risk does not dissipate but is communicated and amplified through multi-scalar interactions. So the purpose of agile governance is not to eliminate complexity, but to optimize complexity. In practice, governance structure is independent of management structure, governance mechanism can be embedded into business processes seamlessly, and ensure your organization optimizes the “traditional” governance to which you refer, and then determine how much you are willing to spend to make decisions faster, coherent for improving organizational level of agility and maturity.
Innovative GRC Governance: For every corporation which should work effectively and run innovatively, you need strong GRC disciplines that help business management perform a risk analysis, harness connectivity (communication, coordination, and control), raise visibility and awareness for many things that are captured at the different levels of the organization.
For every corporation which should work and be effective and efficient, you need good governance; and the desire for more innovation will make governance issues more complex. The value proposition of good GRC and brand should be integrated within and across operations not siloed off in a box and improve the success rate of business innovation. The GRC can be evaluated not only from the financial perspective but also from the involvement and signs being displayed inside the organization, from innovation, people (employees, customers, partners, etc.), and multidimensional value perspectives.
Global GRC governance: Organizations become hyper-connected and interdependent, corporate governance in many nations has either evolved leading the massive corporate failures or some economic crisis. The basis of differences can be harmonized on the global scale based on the common principles. It’s crucial to clarify the difference between local rules and global principles, common beliefs and universal wisdom. The information-based governance process needs to have dynamic aspects to it. It is rigorous; but not overly rigid; it can handle ad-hoc and exceptional matters smoothly and it knows enough to be able to handle business complexity effectively.
It’s important to provide invaluable views, rules, methods, and address the different aspects of governance, deal with paradoxes, handle fricions across individuals, teams, and network-enterprise to achieve high performance business results.
Governance isn’t just about putting restrictions on what you can do, it is also about monitoring and knowing when things are not going right, making an adjustment of planning or taking appropriate adjustments at the right time to improve business management effectiveness and efficiency. There is still a long way to achieving corporate governance maturity. Corporate governance needs to become agiler, customized, globalized, enforcing risk intelligence and generating multidimensional business value constantly.