Friday, August 21, 2020

The Monthly “Digital Master” Book Tuning: GRC Discipline and Innovation Aug. 2020

The important characteristics of digitalization are over-complexity, uncertainty, and ambiguity. Hence, GRC (governance, risk management, and compliance) becomes more critical than ever. 

Here's the context; how should GRC programs be approached? Should technology be a driver? Can you achieve any level of GRC without automation? Can you achieve any level of GRC without people? What is the real driver of GRC? What's the interrelation of GRC and innovation?

GRC Discipline and Innovation 

Innovation Governance as a Continuum Innovation is a managed process of transforming the novel idea to achieve its business value. Innovation governance is to advocate, steer, and sustain innovation effort to achieve business value. If innovation management is like the pedal to accelerate speed, and then innovation governance is the steering wheel to keep a straight line or take a turn at that velocity of innovation management. Innovation governance as a continuum is an important perspective to improve the innovation management success rate.

An Innovative Board: Setting Guidelines to Catalyze Innovation Digital businesses encourage autonomy and innovation. The corporate board plays a critical role in making good policies and setting the right guidelines to catalyze innovation. Digital principles provide a more robust foundation that makes it possible to straightforwardly derive solution-level governance and ensure the effectiveness of innovation management practices. Sharpening innovative “directorship” for getting digital ready is imperative for setting the top leadership tone to rejuvenate the culture of creativity and run a highly innovative digital organization.

From Enterprise Risk Management to Enterprise Opportunity Management We live in an era, full of uncertainty, velocity, complexity, and ambiguity. The result is higher risks of conflict and inertia. Thus, organizations must have solid risk management disciplines, make objective assessments, develop a high-effective management framework, provide backup options, and make the transition from risk mitigation to risk intelligence - the accumulation of enough resources to thrive by capturing opportunities in it and adapting to the uncertainty and changes smoothly.

Do the Rules Stifle innovation Innovation is to transform the novel idea and achieve its business value. It is a business discipline which can be managed. In many organizations, perhaps there is an innovation department specifically setting the rules to take charge of innovation. The paradox is that all creative activities are subversive in questioning the status quo. Setting rules and goals for creativity goes against the very nature of creativity and thus inventiveness and innovation. So does the innovation department stifle innovation? Isn't there a more fundamental problem to innovation failures? What should be done if the rest of the company is hostile to innovation? Should the company give up on innovation?

Where does risk fit within innovation? Not so many people like innovation, because innovation stands for risk, and that is associated with trouble. Innovation is only attractive to the ones who spend their whole life thinking and building creative stuff. A rarer skill is being able to interpret that creative idea into a marketable innovation. Where does risk fit within innovation, and how can the business manage innovation portfolios with calculated risks?

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