Why should Companies focus on the combined efforts to establish GRC (governance, risk management, compliance and IT-Security?)
GRC allows companies to integrate and manage the processes and operations that are subject to regulation, hard or soft law and integrate and manage the core GRC functions into a single integrated set of processes and activities.
At Copenhagen Compliance® we have aired the increased virtues of GRC since 2006. We do that because we believe that GRC enables an organization to undertake a systematic, organized approach to managing the individual Governance, Risk Management and Compliance -related strategy and implementation.
The financial and credit has clearly proved that it is rather vital that every organization has a dedicated focus on Good governance, Risk management, Compliance and IT-Security (GRC) issues and processes. The success of the strategy and power depends on the customization as
one-size-does-not-fit-all.
Manage risk, reduce costs and minimize the complexity.
Instead of keeping processes, responsibilities or information in different silos, management can use a particular system (se Copenhagen Compliance Framework) to monitor and enforce the mandates, rules and procedures that manage risk, reduce costs and reduce operational complexity.
GRC coordinates processes, procedures and data between multiple departments, and processes realted to business, IT, security, compliance, and auditing. GRC can also be defined as an effective and ethical management tool that can objectively extend the results of products or services to measurable metrics.
In certain situations, a siloed or centralized approach is the best while in other cases, an integrated or combined GRC approach is the most optimal. As long as the GRC structures are well defined and the controls are strictly disciplined the GRC journey is on the right track.
Properly implemented, GRC can satisfy the needs of multiple stakeholders, including:
- Educate the business executives to understand and manage risk ownership.
- Accounting and Finance managers accountability to meet regulatory compliance.
- Legal counsels dealing with e-discovery and records retention issues.
- IT directors responsibility towards software installations related to GRC projects.
The Exposure of Risk in Relationships
Global organizations that are complex and diverse in their operations with multiple system of business relationships must focus on the GRC challenges that include the GRC subsidiaries like Bribery, Fraud, Corruption (BFC), CSR and Environmental Social Governance (ESG).
Many global businesses struggle to identify, manage and regulate risk and compliance in BFC, CSR and ESG issues and processes. The extended business relationships include vendors, partners, suppliers, and all other third parties.
Third-Party GRC Management Software.
Businesses are held accountable for all processes that generate revenues or expenses. That includes appropriate behaviors of all business partners. Therefore, it is necessary to conduct regular business partner reviews that identify the problems that directly impact the company's brand, reputation, and increase exposure to compliance matters. That is why we have developed a series of GRC assessments under the umbrella of Riskability GRC Watch. The web based IT tool addresses the questions related to business practice, ethics, safety, human rights, corruption and the environmental issues.
Therefore, many global companies are in the process of establishing a centralized governance structure for third-party GRC management to monitor and report on activities performed across the business divisions and groups. The Riskability GRC Watch enhances provides assessment solutions with the functionality of 3rd party GRC solutions.
However let the main focus and priority must not be to judge GRC compliance, simply as a technology tool. It is the quality and expertise of the staff that determines the success of the GRC strategy, process and technology.
