What is Governance, Risk management and Compliance? Why do we need it?
GRC (Governance, Risk Management and Compliance) is the term used to describe the company’s approach in addressing risks, staying compliant and managing the company’s direction and GRC strategy helps to streamline business risks accordingly.
GRC is a set of practices and processes that runs across multiple departments and functions. Many companies have a dedicated GRC team to manage the GRC tools and platforms. GRC helps to avoid the consequences of silos in the governance, management and assurance of the business attributes.
Let us understand Governance, Risk Management and Compliance each one specifically.
Governance – Governance is the approach model for the management through which it executes control and directs the entire company by using hierarchical management control structures with a combination of management information. Governance activities focus on addressing critical management information which has to be sent to the executive team. This information has to be accurate, complete and timely as it will help in appropriate management decision making. It also helps in providing the control mechanisms to enable and execute the strategies, instructions and directions from the management to be carried out effectively and systematically.
Risk Management – This is a set of processes through which management of the company identifies, analyzes and responds to wherever necessary action required and helps to mitigate the risks that might have impact on the business objective. In regards to response to the risks, it depends on the company’s recognition and includes accepting, avoiding, controling or transferring to a third party. Mostly companies manage wide range of risks that include financial/commercial risks, information security risks and technological risks etc
Compliance – From organizational level, compliance is achieved through the processes related to the management that will identify the requirements (as defined for example strategies, policies, laws and regulations) evaluate the state of compliance, evaluate the potential costs and risks of non compliance against the expenses to fund, prioritize and initiate any corrective actions accordingly.
Why do we need Governance, Risk Management and Compliance?
Sound Decision Making and Performance – Less number of unexpected errors,is achieved by greater oversight and top executives of the companies can make informed decisions about procurement, investments and developments. Timely decisions lead to more successful technology implementations, product and market expansions and partner engagements.
Ensure Reliable Information and Operational Stability – Using GRC Solutions helps to identify, prevent and communicate any follow-ups and missed assessments. GRC Automation processes allocate responsibility to the managers on the top of the risk compliance and management tasks.
Focus on Revenue – By using enterprise GRC Solutions companies can achieve enhanced security and privacy. Companies are able to discover and onboard new profit generating avenues. For instance, a company can make the process simple and easy in regard to the verification of compliance with the third-parties more effectively prior to entering into the agreement.
Enhance Communications – Opting GRC Services helps companies in eliminating ambiguity and promote understanding across departments, executives and other key stakeholders. A well implemented GRC Automation helps to submit the auditable records of the previous performance so the companies can gain insights
You may request a demo to explore Amurta’s Data Insights Platform by just clicking this link. For further details or queries, please contact +1 888 840 0098 and you can email us at sales@amurta.com, we will be happy to assist you.
