Maintaining the right balance between cost optimization, capacity for innovation and risk management is a significant challenge for organizations today. In such a scenario, governance, risk, and compliance (GRC) practices ensure that organizations reach their business objectives.
THE THREE PILLARS – GOVERNANCE, RISK MANAGEMENT & COMPLIANCE
In the ever-changing complexity of the business environment, organizations have started working towards a holistic and integrated GRC framework. The various elements of a business, like regulation, people, technology, processes, etc., need mechanics to ensure that organizations can successfully mitigate these complexities. The GRC framework essentially provides this mechanism viewing the three pillars as mutually related and interdependent functions. Let’s have a closer look at the three pillars.
GOVERNANCE
The overall management approach through which the top-notch executives direct and control an organization is referred to as governance. A combination of management information and hierarchical management control structures are used to achieve this. Governance is essential for setting direction through policy and strategy. It also involves monitoring performance and controls and evaluating outcomes.
RISK
A risk is a possible event that could cause loss to a business or stand in the way of achieving its objectives. Risk management ensures that senior management identifies, analyses, and controls risks that might affect its strategic goals.
COMPLIANCE
Compliance is the act of ensuring that a set of guidelines, as defined by laws and regulations, is followed. It entails the employment of proper and consistent practices. Where GRC is concerned, compliance ensures that the organization takes measures and implements control to ensure that compliance requirements are consistently met.
BENEFITS OF GRC
The benefits of GRC are :
• Improvement in decision making
• Reduction in fragmentation among divisions and departments
• Optimal investments
• Elimination of silos
THE GRC CAPABILITY MODEL
The GRC capability model integrates the various sub-divisions of governance, risk, and compliance into a unified approach. It has four components:
Learn about the organizational culture, context and key stakeholders
Align strategies with objectives and actions with strategy
Perform desirable actions
Review the design and operating efficacy of the strategy and actions
Proactive, detective and responsive actions and controls may be selected by organizations depending on their business goals.
With its significant presence in the UAE, Data Direct can assist you in aligning GRC capabilities like risk management, document management, audit management, reporting, and analytics to your business.
