GRC is a discipline that brings together focus areas across corporate governance, enterprise risk management and corporate compliance. The aim of an effective GRC strategy is to ensure that right efficiencies are brought in and more effective information sharing and reporting mechanisms are enabled. Going in-depth into the key components of GRC we have the following:
To achieve maximum benefits, governance, risk management and compliance activities need to go hand in hand for effective operations.
The effective management of risk depends on how well they are understood. Harvard Business Review classifies risks into three priority categories as below.
In today's world with blurring geographical boundaries and, organizations operating increasingly on global scales, compliance with industry regulations is paramount. Some of the key measures that can be undertaken to ensure compliance are as follows.
Management of compliance and risk varies from industry to industry. Outlined below are some processes that are commonplace:
We can classify GRC tools into three key categories.