Monday, October 3, 2022

Initiativesofgrc

8:55 PM 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.

Initiatives of GRC

Initiativesofgovernance We are in the age with the mixing of old and new, physical and virtual, opportunity and risk; there is an abundance of information but still the scarcity of insight, etc. Sound governance is part of eliminating risk and doing the right thing, steering the organization in the right direction. With rapid change, governance practices need to be sufficiently informed and able to keep pace with what is going on. Good governance must create good performance, especially for the long term business growth and maturity.

Initiativesofbods Leadership is about change and direction To lead today’s technology-savvy knowledge workforce, command & control management style simply does not fit in and will run out of steam soon. The leadership challenge in the boardroom is about how to fill blind spots, bridge insight gaps and make a leap of innovation.

Initiativeofriskintelligence With rapid change and hyper-connectivity, people and organizations are becoming more interdependent with each other. Risk management is not just about risk mitigation, every risk has opportunities, which leads to new strategies. Risk management has strategic dots that need to be connected; it’s important to lift risk management from risk control to risk resilience, and then, to risk intelligence. As financial performance is highly correlated with the level of integration and coordination across risk, control and compliance functions. The efforts on managing risk holistically or in a more integrated fashion are critical for the long term business success.

Increaseriskawareness 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.

Initiategrcinfluence The governance is an organizational capability for risk mitigation, improving organizational effectiveness. Corporate risk management ensures you have the right level of risk control; corporate compliance enforces laws and regulations. That’s why they usually have been put into the overarching GRC (Governance, Risk, Compliance) umbrella. There are potentially multiple joint processes that could define the scope of Governance, Risk, and Compliance. GRC is not a single process, but a collection of processes with different roles defined and mechanisms embedded, such as roles and technologies to improve organizational effectiveness, agility, efficiency, and maturity.