Sunday, April 9, 2023

InquiriesofGRC

10:57 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, RI (risk intelligence) 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.

Inquiries of GRC

Inquiriesofrganizationalgovernance Governance is about doing the right things, more specifically, it’s about enforcing decision effectiveness, and getting the people, culture, accountability, and performance right. In the simplest terms, governance is who you are and how you do it. Given many organizations don't view governance as "decision-making optimization," or “accountability enforcement,” their governance efforts usually devolve into time-consuming, costly, bureaucratic constructs. Here is a set of inquiries to assess organizational governance maturity, as effective governance leads to effective management practices and reaches a high level of organizational maturity.

Inquisitiveboard Generally speaking, Boards have a couple of main functions such as strategy oversight, governance practices, providing advice to executives, and resource provision, etc. So the Board should be knowledgeable enough to set broad strategic goals. They need to educate themselves by hearing different views about the organization, its environment, and strategic alternatives. Even if the majority of BoDs are senior executives, they need to break the “status quo,” present learning agility and show the inquisitiveness to ask the tough and right questions. The board represents the ownership and they really cannot do a good job if they don't have the courage and knowledge to question and challenge and set the broad strategic goals, culture tones, and the digital theme of boardroom itself. As an inquisitive BoD: How do you ask the tough questions?

Insightupongovernance Governance is to frame business management, it should orchestrate change, do it with trust and flexibility. It’s about how well an organization is being run and if set upright, it should effectively oversee the achievement of the business strategy. How to enforce organizational governance discipline depends on the nature, scale, and complexity of the organization, as well as understanding its risks and conducting. Governance is neither linear nor single dimensional nowadays, it should be understood via multidimensional lens and get enforced holistically.

Initiativesofagilegovernance Contemporary organizations becoming complex is not for its own sake, but to adapt to the environmental changes, GRC can be used to raise visibility and awareness for many things that are captured at the different levels of the organizational hierarchy.

Initiativesofgrc Compliance as a strategic issue, is or should be more than just looking at internal directives. It is also about looking at how the world and society are developing.Compliance is the management discipline of designing and implementing effective steps to ensure that the organization actually complies with the laws and regulations relating to its operations.