An effective GRC leader has passion to lead; gravitas to dig deeper and innovation to influence business's top line growth.Leadership is essential in building strong GRC disciplines. This means to get support from senior management with regard to the promotion of the GRC-reinforcing culture. Far too often, compliance culture is weak, Compliance is reduced to an administrative matter of compiling nice documents which are often the shelfware only. In fact, A good compliance system must have morals and ethics incorporated into it. From a management perspective, what are the leadership traits in advocating GRC and improve management effectiveness?
Passion: Effective GRC leaders demonstrate passion, savvy people skills, and integrity! Implementing and leading effective compliance programs definitely requires more than just experience and subject knowledge. There is a critical aspect of leadership - passion, the key aspect of being able to hammer the message is true passion about the subject. Passion indeed, has a major role to play in conveying conviction and authenticity and builds credibility. A GRC executive who does not truly believe in his/her message will not survive scrutiny! However, it must always be tempered with focus and facts. If not, it starts to sound like evangelism - the sounds of trumpets that drowns out any ability to listen carefully and denies the right to challenge.
Gravitas: Gravitas is essential for a governance or compliance executive to demonstrate his/her beliefs, convictions and resolve by influencing both decision makers and staff. All too often firms look for good technical experts to fill what is, or should be a highly influential position. The ability to communicate, the experience and product knowledge to have credibility in the face of sceptics, and the full support of the C-suite is essential if a company wishes to treat their values, external regulations and internal policies with integrity. The GRC leadership and managers need to have a deep understanding of business activity and the culture in which it is being executed is an essential element in communicating with those who act on behalf of the company.
Innovation: The GRC executives should be able to think strategically and innovatively. Governance and risk management are important, but should be handled and prioritized in such a manner that they're inherent in the way without negatively impact the working flexibility to deliver solutions, and to ensure clear and concise information to key decision makers. Therefore, the governance rules include, but not limited to improving the functioning and transparency of the company, its business strategy, and management performance. The main benefit is, therefore, the understanding of the processes and adjusting them for better functioning of the production or service processes of the business entity. The good GRC disciplines won’t stifle innovation, but enforce it.
Corporate GRC has a great impact on corporate performance. Good governance must create good performance, especially for the long run business growth. The companies which have good performance must have effective leadership to manage it seamlessly by bridging between doing the right things and doing things right: doing the right thing for the benefit of everyone has to be done in a language those managers understand and respect. That's where the challenge resides.