Thursday, July 7, 2022

Initiatecrossboundarygrc

11:30 AM Pearl Zhu No comments

The flavor of GRC practices depends on the nature of the business and the level of the organizational maturity.

Due to the “VUCA” characteristics -Complexity, Uncertainty, Ambiguity, and Velocity of the Digital Era, the directorship in any organization must have the agility to adapt to changes and build abilities to advise, inspire and motivate a group of people toward accomplishing shared visions and goals.

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? Modern corporate boards play significant roles in guiding businesses in the right direction and achieve expected business results. Here are the multiple perspectives of shaping a strategic boardroom with digital acumen.

Initiate Cross-Boundary GRC

Initiatecrossboundarygovernance Governance refers to direction and guidance. Sound governance is to improve the management effectiveness and eliminate risks. There are varying degrees of understanding of the concept of governance and there is the distinction between corporate governance responsibilities and management responsibilities. It’s important to clarify and enhance governance with organization roles and responsibilities. To what extent is Senior Management involved for governance at various levels - Corporate Governance, Technology Governance, Architecture Governance etc.

Interdisciplinarygovernance Corporate GRC discipline can fulfill its purpose as a high-level corporate enabler by providing a structured view and communication bridge between stakeholders. Without effective GRC discipline, the business will face significant risk for surviving, and opportunities which it creates cannot be properly transferred into multidimensional business value. Thus, governance must be viewed and assessed at the enterprise level to enhance management effectiveness and improve organizational maturity.

Innovationgovernance The goal of organizational governance is to ensure that businesses work as a whole to improve management effectiveness, harness multifaceted value and improve business maturity. It is important to emphasize that governance is fundamentally about having a systematic approach to improve decision effectiveness and risk intelligence within the corporate entity. 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 such as corporate directors.

Innerconnectivityinrisklawcompliance With “VUCA '' digital new normal, risk, compliance management should be a crucial component of the digital transformation approach. Do things better, faster and smarter. Risk is the unwanted subset of uncertain outcomes; compliance means conforming to a rule, such as a specification, policy, standard or law.

Interwoven GRC Capability & Maturity The capability is the ability to achieve the desired effect under specified performance, standards, and conditions. There are multiple perspectives of organizational capabilities, and there are all sorts of capabilities. High mature capability can only be developed and sustained via strong governance discipline. There are a multitude of distinctions between corporate governance responsibilities and management responsibilities; such as governance structure, governance process, governance mechanisms, governance practices, and governance metrics, etc.