The total strategy and technique for managing governance, risk management, and compliance within industry laws is referred to as governance risk and compliance, or GRC for short. Consider it a sophisticated method for keeping your firm above board, to put it as simply as possible.
The Open Compliance and Ethics Group (OCEG) first coined the acronym GRC, which they characterise as “an integrated collection of capabilities that enable an organisation to reliably achieve objectives, overcome uncertainty, and behave with integrity.” GRC, according to the OCEG, is a well-coordinated and integrated collection of all the skills required to support principled performance at all levels of an organisation.
Table of Contents
Drivers of GRC
Regulation is, without a doubt, the most important driver of GRC. The use of data, particularly individually identifiable information, has enormous commercial potential while also posing a significant risk of abuse. Individuals and civil rights organisations are becoming more aware of how firms manage information and technology through processes, people, and culture as a result of the surge in cyber-attacks that disclose personal data.
Benefits of GRC
GRC has the following advantages:
- Better decision-making
- More efficient IT spending
- Silo dismantlement
- Divisions and departments are less fragmented now.
When GRC is done correctly across the entire business, with the right people getting the right information at the right time and the proper objectives and controls in place, OCEG claims that costs, duplication, and impacted operations will be reduced.
Approach of GRC
GRC software is best implemented in a comprehensive manner that encompasses the entire organisation, as previously indicated. The OCEG has developed the GRC Capability Model, an open-source strategy that combines the many sub-disciplines of governance, risk, audit, compliance, ethics, and IT into a cohesive framework.
The Capability Model consists of four parts:
- LEARN – To guide objectives, strategy, and actions, learn about the company’s context, culture, and important stakeholders.
- ALIGN – Using effective decision-making that considers values, opportunities, threats, and requirements, align strategy with objectives and actions with strategy.
- PERFORM- Execute actions that promote and encourage desired outcomes, minimize and fix negative outcomes, and discover when something occurs as quickly as possible.
- REVIEW- Examine the approach and activities’ design and operational performance, as well as the continuous suitability of objectives to enhance the enterprise.
These aspects are further deconstructed into principles, which are then supplemented by practises, operations, and regulations in an adaptive quality management process to reach principled execution.
Many organizations are turning to technology solutions to satisfy their GRC requirements. These solutions allow executives to keep track of GRC across the organisation by ensuring that business processes and information technology remain aligned with the firm’s governance, risk, and compliance standards. The following are some of the capabilities:
- Management of problems
- Management of documents
- Management of audits
Nonetheless, simply having a tool isn’t enough to ensure effective GRC software. People have ethics, not technology. As a result, even before considering technology, GRC must be handled from a people and process standpoint.