Maybe the term GRC is not so familiar to you, so we will start with the meaning of the acronym: Governance, Risk and Compliance (GRC) can be defined as the automation of the management, measurement, handling and communication of controls and risks related to objectives, in compliance with rules, regulations, standards, policies and business decisions. But is this not the same as Corporate Governance?
Yes, corporate governance is a more familiar term. All companies do it, but not everyone understands what and how they do it. The fact is that there is no longer any way to ignore this issue. There are many business pressures that require initiatives and investments. We can cite, for example:
- Increases in regulatory standards
- The need for more transparency and traceability of risks and compliance
- High levels of risk, impacting profitability
- Lack of organizational responsibility
- Higher customer expectations
Corporate Governance, Risk and Compliance management can help companies administer these pressures. GRC offers mechanisms to control how companies operate. An integrated GRC approach enables companies to manage risk and compliance requirements related to environmental practices, processes, business partners and internal policies, as well as financial, operational and IT activities.
But in the end, what are these tools, which, when used in an integrated fashion, promote excellence in corporate governance? Let’s have a look at them:
- Risk management
- Policy and Compliance Management
- Change management
- Audit management
- Strategy and performance management
- Business Process Management
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