Every organization applies GRC (Governance, Risk and Compliance), whether consciously or intentionally or not. They all have some approach to administrating the organization, managing risk and ensuring compliance. GRC can be spread across disconnected silos or it can be highly collaborative and integrated.
Organizations do not need to ask themselves whether they apply GRC or not, but rather how mature their approach to GRC is and how it can be improved.
In an ideal world, GRC has a natural flow. Governance defines the goals and guides the organization, establishing the context for risk management. Risk management aims to understand and minimize uncertainty in these goals, minimizing exposure to losses while maximizing performance. Compliance, in turn, ensures that the organization operates with integrity by respecting limits established in the organization’s values, policies, regulatory and legal requirements, as well the limits defined by risk tolerance.
However, in many organizations, there are GRC functions that operate in isolation, resulting in redundancies and gaps. This has a measurable cost for the organization due to inefficiency, ineffectiveness and lack of agility. Some organizations have mature, structured processes and GRC reports that combine an integrated and orchestrated vision of processes with GRC data.
GRC Maturity Study
Every two years, OCEG publishes a report on GRC maturity in companies. In the infographic below, you can see some highlights taken from the report. If you want to see more detailed data, you can find a summary of the report here.
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