Organisations face ever-changing complexities and challenges when it comes to meeting business objectives. For this reason there has always been an increasing need to have strategies in place to ensure IT operations are aligned to support your organization’s business goals.
This is where GRC steps in. GRC—Governance, Risk, and Compliance— has become one of the most important aspects in an organisation in terms of effectively managing risk and meeting compliance requirements and achieving strategic objectives.
To better understand all the components of GRC and how it works for your business, we, therefore, take a deep dive into GRC.
1. What Is GRC?
Governance, Risk, and Compliance or GRC in its broadest sense refers to a strategy to help an organization achieve its objectives, manage the regulatory requirements across the enterprise and overall ensure a better scaling of business process to drive business efficiencies. GRC can also be combined into an integrated framework of processes that runs across departments to help manage policies, identify risks as well as improve internal control and governance processes.
2. Fundamentals Of Governance, Risk, and Compliance
Governance is ensuring that all organizational activities are directed, controlled and aligned to support your organization’s business goals. In GRC, governance is necessary for setting a direction, monitoring performance and controls, and evaluating outcomes.
Risk is making sure that any risk or opportunity associated with your organization’s activities is identified and addressed in such a way that supports your business goals. In GRC, risk management ensures that the organization identifies, analyses, and controls risk through a comprehensive IT risk management process that is part of your company’s Enterprise risk management function.
Compliance involves making sure that organizational activities are operated in a way that meets all regulations and laws impacting the systems. In GRC, compliance ensures that IT systems and the data inside those systems are properly secured by taking measures and implementing controls to assure that compliance requirements are met consistently.
3. How does GRC work?
Enterprises require a GRC framework for the leadership, organization and operation of the company’s IT areas to ensure that they support and enable the all strategic objectives.
Benefits of using GRC for your organization includes:
- Improved decision-making
- More optimal IT investments
- Elimination of silos
- Reduced fragmentation among divisions and departments
With the right tactics, structure and team in place, a GRC plan can save time and support your company in achieving business goals as well as controlling regulatory and enterprise risks.
Having an effective GRC strategy is important because it pulls together the various risk, compliance and governance functions in a complex organization into a single strategy.
Organizations often face challenges when it comes to establishing a comprehensive risk management structure and optimize business performance for the greatest outcome and efficiency.
Therefore investing in a GRC plan benefits your entire organization through streamlining business processes and making compliance management easier. With better corporate compliance, you can spend less time working about the risks of non-compliance, and more time focused on the areas of business that generate revenue to grow your company faster.