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 The economic turmoil makes all businesses large or small to rethink their risk management strategy and practices, as governance is an integral part of business strategy management

Governance is about doing the right things to ensure business effectiveness; it is about guidance, values, and principles governing the company's commercial activities for achieving high-performance results. Governance is a collective mindset; and can be used to raise visibility and awareness for many things that are captured at the different levels of the organization. 

There are varying degrees of understanding of the scope of corporate governance and the distinction between corporate governance responsibilities and management responsibilities. Governance is a management enhancement tool and a learning tool that needs to be well understood and reinvented for improving business management commitment and maturity.

Predictive, proactive, and performance-led governance practices should lead the way: There is a myriad of information, conflicts, and change in the modern business environment. Business leaders today can’t predict every turn or curve that the organization will face. However, governance is not only about controlling or compliance, it’s more about steering and enabling for achieving high performance. Good corporate governance creates a good controlling system, which can assure the corporations’ operation under the correct directions and behaviors correctly. Information based predictive analysis provides an effective tool for the business to forecast trends and risks, so they can practice predictive governance to enhance business management disciplines and practice.

Applying traditional ways of working in the silos and through overly rigid processes simply won't be enough to adapt to rapid changes. Practicing proactive GRC means keeping abreast of standards and auditing to all regulations that may affect the company, set a common process to deliver real-time accountability and transparency across regulatory areas to monitor regulatory change, audit and measure the impact, implement appropriate corrective actions, update policies, and monitor performance periodically.

Agile, holistic governance practice to improve decision cohesiveness and maturity: Upon “VUCA” reality, the desire for proactive change and radical innovation will make governance agiler and cross-disciplinary. One of the important goals of GRC discipline is to improve the corporate decision-making effectiveness and consistency. In reality, given many organizations don't view governance as "decision-making optimization," their governance efforts usually devolve into time-consuming, costly, overbearing bureaucratic constructs. Solid governance disciplines are not for encouraging silos or stifling business speed, but for enhancing business effectiveness and agility. 

To reinvent traditional management and accelerate business performance and speed, it’s important to embed the GRC mechanism in the key business processes, enforce good governance standards; as well as advocate agile, holistic governance practices to make decisions faster and better. Strong business governance has a better chance to deliver better performance results. It’s important to focus on proactive planning and process optimization. A holistic GRC approach with a set of innovative practices can harness information-based communication, enforce accountability, improve prioritization, and optimize resource usage, etc, for improving decision cohesiveness and overall business management matuirty.

People-centric GRC focuses on engagement and motivation: Governance is an integral part of business strategy management with both hard disciplines and soft ingredients, culture and awareness are the most critical suspects of GRC. One point of struggles is governance taking away liberties that are essential to people doing their jobs in a creative way. The GRC program is a journey and it might be good to start at the top with risk awareness culture (awareness, appetite, attitude, environment, oversight, etc.) Effective governance today needs to be people-centric, less process-driven, enhancing cross-functional connection, trust, and communication within the intangible assets of organizations.

Sound governance is to harness people-centricity by increasing process transparency and improving risk-intelligence. There is a symbiotic relationship between various teams across organizations which leads to realization of higher business goals. Governance is important but should be handled and prioritized in such a manner that they're inherent in the way without negatively impacting the working flexibility to deliver premium solutions. Corporate governance discipline can fulfill its purpose as a high-level business enabler by providing a structured communication bridge between shareholders/investors and top business leaders for building trust and improving problem-solving effectiveness.

The economic turmoil makes all businesses large or small to rethink their risk management strategy and practices. Organizations have been seeking to improve their ability to define and communicate clear, consistent, enterprise-wide GRC. Governance is an integral part of business strategy management, involving the leadership and organizational structures and processes that ensure the organization sustains and extends the enterprise strategies and objectives to deliver higher than expected business results and improve the overall business effectiveness and maturity.

Posted in: GRC