Innovategrc

Holistic GRC approaches enforce accountability at different levels of the organization and steer the business in the right direction.

There’s a correlation between corporate governance and business performance, and there's a clear connection between bad governance and poor performance. Governance is about guiding and regulating corporate activities to serve the fundamental purpose of the organization.

Without effective GRC discipline, the business will face significant risks for surviving, The best practice of governance takes a people-centric, value-creation approach.


Governance is a facilitation system to enhance communication and harness collaboration: Corporate governance indicates a relationship with the Board, different levels of management and variety of stakeholders. Governance needs to include engagement and motivation because overly focusing on control and enforcement has the tendency to damage an enterprise's capacity to motivate and engage staff and harness business management disciplines.

Governance discipline focuses on prioritization, value-adding, and change agility. Shift the governance conversation from availability of business resources to the most productive uses for the enterprise's scarce resources. It’s less about controlling, more about enabling; repurposing, realignment and integration of business management processes and practices.

Governance is the structure and process of authority, responsibility, and accountability in an organization: Corporate governance is where resources are allocated to turning the strategy into a reality, from “as is” into “to be” state of the company. The governance structure specifies the distribution of rights and responsibilities among different participants in the corporation (board of directors, managers, shareholders, creditors, auditors, regulators, and other stakeholders)

Governance can begin with frameworks, structures, policies to be put in place, depending on the nature, scale and complexity of the organization. The mental model that the governance refers to should include the process for developing a strategy and creating the plans to execute on it. Governance specifies the rules and procedures for making decisions in corporate affairs. Well structured governance enforces the breadth and depth of business management with strong alignment, transparency and accountability.

Governance mechanisms can be embedded in the myriad day-to-day decisions and behaviors taking place at all levels of the entire organization: Often, business ineffectiveness is caused by disconnected or distant layers of silos or inflexible management hierarchy. An effective governance approach illustrates the governance processes with the mechanisms of escalation and resolution used to strengthen the weakest links of strategy management.

Governance is a mechanism for monitoring the actions, policies, and decisions of corporations. Governance mechanisms can be embedded into myriad day-to-day business activities, to drive good behaviors, lubricate business relationships, and improve organizational management effectiveness. Strong governance prevents the business from getting stuck at ineffective strategy management, aimless administrative bureaucracy, irrational decisions, or irresponsible behavior. Under strong governance, well-defined KPIs will help to measure results both qualitatively and quantitatively.

Holistic GRC approaches enforce accountability at different levels of the organization and steer the business in the right direction. Organizations with strong governance disciplines have a direct link to business and its processes, usually have a higher mature strategic alignment through integration, collaboration and harmony, etc, to reach the next level of organizational maturity.

Posted in: GRC