Governance, risk and compliance are the vital aspects of a business. Furthermore, their popularity is increasing continuously. GRC means that businesses will use technology to ensure governance, risk and compliance. But this is not just a new way or some extra task. Instead, it works to streamline the three departments so that they can work together to achieve a single goal.
In addition to this, GRC is not a single technology or software but everything that a business does to ensure streamlined working comes under it. Every single department is managed separately by using applications of enterprise resource planning. This includes both manual and automated operations. You can read more about GRC at www.insights.diligent.com/grc/
Governance includes the means and methods that will help you to direct and control the organizations. It is necessary for an organization to have a proper governance structure that will set the right direction. So you will have proper policies and strategies. Furthermore, you will be able to monitor the performance and will be able to control the outcomes through proper evaluation.
Any unexpected event that might cause harm to the business comes under the category of risk. You have to deal with the losses that are making it hard for you to achieve your goal. Risk management includes that the organization identifies the risks, analyses them and controls the risks on time. Thus, the organization can achieve strategic objectives.
The third part of the GRC technology is compliance. This ensures that you follow the set guidelines and standards to meet proper and consistent accounting and other practices. Furthermore, it also ensures that the organization takes safety and security measures into account and meets the compliance requirements.
Importance of GRC
ERP tools are in excessive use because of their productivity solutions. One of the tools of ERP includes Microsoft Office. But this is only a small tool, there is much more convenient because of these applications and software. Although many people don’t find ERP popular but they are quite common in the workplace. Therefore, their use is unavoidable.
These tools are helpful in achieving streamlined operation in governing the business, ensuring its compliance with standards. Furthermore, they also help businesses to reduce risks. Previously, companies were working on these three sectors but the approach was different. They were dealing separately with them. However, now they have changed their approach and are working on them as one.
Managing all three together was the best approach, to begin with, because the goal is the same. If an organization wants to achieve risk management and compliance with the standards, the government should be dealt with.
Likewise, if there is any problem with the risk management, it will go up to the governance level. Furthermore, risks will increase because of failure to comply with the quality standards. So now you understand why the synchronization between the three is important.
So is there any benefit of using this technology?
GRC is not getting popularity because of a trend, it is because of the benefits that it brings to the businesses. It delivers ROI and helps you to deal with risk management. In addition to this, while dealing with governance and standards compliance, this technology gets rid of redundant processes.
Furthermore, it makes use of artificial intelligence in the system and improves the performance and speed of automated functions. Thus, if before you used to take hours for doing something, it won’t take much time with artificial intelligence. You can do things in minutes without much effort. This is because of the availability of data in the system. All you need to do is to give a command and the software will extract the required data. Thus, you will get the results.
The benefits include;
- Improvement in organizational decision making
- Better optimization in the IT investments
- Eliminate the silos
- It reduces fragmentation among different departments and divisions of the company
The need for GRC strategy in businesses
This strategy is helpful in putting together all the three complex organizational operations in a single unit. Thus, they can easily link risks and strategies and work on them to achieve the best outcome. Furthermore, this strategic planning also simplifies the operating processes. This will also let you ensure risk management for the board of directors. They can deal with things on time.
One of the biggest benefits of using the GRC strategy is that it will save a lot of your time. You will have the right tactics and structure to deal with things. And this will enable you to regulate and control business processes in order to achieve business goals.
GRC approach – the capability model
With proper implementation of GRC, your whole organization will be under control. The capability model will integrate different sub-disciplines of the organization and use a unified approach to deal with things.
The 4 components of the capability model include;
You need to learn about the context of the organization, its culture and the important stakeholders. This will let you plan your strategies, take action on them and work on your objectives.
The strategy should align with the objectives of the strategy and take action accordingly. To do so, you will need effective and efficient decision-making skills. They will help you out in addressing the value, and threats, make use of opportunities and meeting the requirements.
You will perform the needed actions and reward the desirable practices. Furthermore, you will need to prevent undesirable actions and things and remediate them as needed. To do so, you will need efficient working performance that can detect if there is something undesirable.
The last step is to review the strategic planning, the design of operations and the operating effectiveness of your strategy. In addition to this, you will also need to review the efficiency of your objectives and improve the organizational performance to achieve them.