Governance, risk and compliance (GRC) are three disciplines that can help ensure that a company meets its objectives. This structured approach aims to align IT with business objectives. It can also help businesses better manage risks and meet specific compliance requirements.
When a governance, risk and compliance strategy is well-planned and effectively implemented, GRC can deliver many benefits.
What Is Governance, Risk & Compliance?
GRC can be defined as a popular corporate management system that integrates governance, risk and compliance functions into the processes of each department within an organization. GRC is a structured approach to aligning IT with business objectives while effectively managing risk and meeting compliance requirements.
The main purpose of GRC is to resolve the “silo mentality” and reduce risks and costs, and duplication of effort. In turn, GRC can help improve morale, increase efficiency and improve decision making.
The Benefits Of A Governance, Risk And Compliance Strategy
Governance, risk and compliance can lead an organization to success if used appropriately. This strategy encourages informed decision-making which can help mitigate risk and prevent reputational and financial losses.
It can also ward against compliance violations, data breaches and similar consequences relating to poor decision-making. GRC also promotes continuous collaboration and enhances a business’s ability to respond to risks strategically. Many organizations also find GRC to be helpful in driving business results.
Here is a look at some of the other benefits of GRC services:
Governance, risk and compliance can help businesses achieve a more productive and efficient environment in which all components work towards achieving a common goal. GRC can also be useful in the detection and prevention of common risks.
When GRC information is integrated successfully, management is able to make intelligent decisions more rapidly. Improved decision-making can help reduce the frequency of errors and help businesses grow with fewer disruptions.
GRC also helps improve the alignment of their objectives with their organization’s mission, vision and value, resulting in greater business confidence and better decision-making skills.
Governance, risk and compliance is critical to identify and prioritize resources on key elements of business processes. Through GRC, businesses can learn the best ways to eliminate non-value adding activities from their normal operations while streamlining value-added activities.
This can help businesses reduce wasted time and expense, and avoid undesirable variations. For example, manual preventative controls are replaced with automated detective controls to increase traceability and overall efficiency. In time, GRC can also accelerate business performance and reduce the expenses involved in conducting audits.
Protection Of Reputation
It takes just one mistake for a business’s reputation to decline quickly. Governance, risk and compliance can help businesses manage their risks more effectively and protect their reputation. There are many ways in which governance, risk and compliance services can help protect the corporate reputation and brand.
The information garnered from GRC can also be helpful for managing crises professionally and effectively while defending the organization and its board members and executives.
One of the many benefits of governance, risk and compliance is cost reduction. GRC helps eliminate redundant and disparate processes, resources and tools that result in wasted money and time.
GRC can help organizations better define their business rules, review controls and visualize future growth, leading to reduced costs. Governance, risk and compliance can also help businesses better address cyber security risks.
Cybersecurity is a growing threat in nearly every industry; it is essential to strategize how to manage digital threats and minimize financial losses. Businesses must always have a plan to deal with cyber-attacks and protect sensitive information. By being proactive about cyber security and data privacy, businesses can achieve cost savings.
Talk To The Experts In Risk Management Consulting
Governance, risk management and compliance are three areas that can help a business achieve its objectives faster and with fewer risks. The primary goal of GRC is to develop a synchronized approach to each of these important areas and ensure that businesses can work more effectively.
By using GRC to its full advantage, businesses can enjoy a range of benefits, such as better decision-making, process optimization, less duplication, cost savings, better allocation of resources and reputation security. Interested in learning more about the benefits of governance, risk and compliance services? Reach out to the experienced risk management consultants at Hartman Executive Advisors.