GRC, as it's often termed, is an emerging discipline, probably originally from the information technology domain. It has now been much more widely adopted by organisations as a means of integrating these three functions within a business, which have to-date been largely siloed.
Integration is challenging, however, as it brings with it significant hurdles. There needs to be an alignment of aims and objectives, a sharing of information and a unified approach to problem solving.
The literature and anecdotal evidence suggests that GRC will help you align with the goals, and manage risk more effectively and is now frequently referred to as a strategy for managing an organisation's overall governance, organisational risk and compliance.
A well-planned GRC strategy comes with lots of benefits: improved quality of decision-making, higher quality of both data and information available for this decision-making, more optimal understanding of where organisations should invest, enhanced management of risk and a higher chance of meeting compliance requirements.
GRC is most often connected with achieving risk and compliance orientated goals, however more recently there has been a more holistic view emerging that a well implemented GRC framework will actually also enhance organisational performance.
We believe this and have developed GOVindicia™ to enable organisations to begin to quantitatively measure the effectiveness of their governance. It's increasingly accepted that good governance drives both better risk management and achieves better compliance outcomes.
Many organisations seek to create a framework for guidance in developing and refining their GRC functions rather than creating one from scratch. GOVindicia™ is a practical and pragmatic approach to governance, which integrates Culture, Decision-making and Implementation.
What most professionals now agree on is that the decision-making, risk management and other compliance functions, included in a GRC framework, will not be effective unless the organisation's executive leadership really supports its cultural implementation.
GRC has been slowly developing over the last decade or so. What is increasingly clear is that good governance is the foundation to an effective GRC framework and if you want to improve something, you have to be able to measure it.
This blog was written with the support and insight of one of our contributors. Thank you, Divya. As an MBA student specifically interested in marketing and culture, she is a contributor to the Perrin Carey blog. If you would like to contribute to moving governance forwards towards a more ethical and human centric framework, please contact Perrin.