Integralgrc

Governance should be understood via multidimensional lenses such as innovation, people, and multidimensional value perspectives, and businesses need to take a systematic approach to develop and enforce it holistically.

Organizational governance is about steering. In mature organizations, it is a strategic imperative to move GRC beyond the corporate controlling entity to being the champion of corporate culture, ethics, and responsibility. 

How to enforce the organizational governance discipline depends on the nature, scale, and complexity of the organization, as well as understanding its risks and conducts for improving organizational effectiveness.

 


GRC can begin with frameworks, policies and standards to be put in place: The purpose of developing a governance framework is to define the building blocks of governance principles, processes, and practices. Effective GRC disciplines set various rules and regulations the organization has to comply with in a holistic way. Establish holistic governance across disciplines spanning the entire value chain, build driving principles for improving strategy management effectiveness, architecture cohesiveness, program portfolio maturity, optimize business performance through the creation of value to varying stakeholders in a coherent way.

GRC is not a single process, but a collection of processes with strong governance mechanisms, such as roles and technologies, etc: Corporate governance has a direct link to each business and its processes. Although the governance structure is independent of the management structure, the governance process/mechanism can be embedded into the business process seamlessly. It makes sense to have governance processes that are more information-based, lightweight, continuous, focusing on results and adapt to changes rather than static plans. Governance takes focus; without that focus, each department will push and pull for their unique needs/wants, potentially slowing down the speed of the entire company. Information based analysis helps the business optimize crucial GRC processes, predict or detect fraud or bad behavior, break down functional silos to manage organizations holistically.

There are both hard and soft components in business GRC approaches: GRC approaches need to become more integral to improve organizational effectiveness and agility due to the dynamic business environment. There is an ongoing problem with overly rigid GRC approaches that seem to overlook the very human and social behavioral factors that underpin real GRC success. Effective governance is based on strong leadership, optimized process and efficient technology. You cannot have effective GRC without the soft ingredients such as culture and awareness which are the most critical aspects of GRC. A good compliance system must have morals and ethics incorporated into it, to improve people-centric GRC effectiveness.

Governance is about steering. The higher the complexity of the organization and the complexity of the environment in which it operates, the higher the requirement for GRC disciplines to shape differentiated capability, meet performance baselines, and generate value. Governance should be understood via multidimensional lenses such as innovation, people, and multidimensional value perspectives, and businesses need to take a systematic approach to develop and enforce it holistically.

Posted in: GRC