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While you may have heard the term GRC, or governance, risk and compliance before, what you may not know is its importance to your business. In fact, GRC can be applied and utilized in any organization out there. It is a management strategy that can ultimately save you time when it comes to controlling regulatory and enterprise risks.
GRC is made of three parts – let’s break these down:
Governance: the establishment of policies, while continuing to monitor their proper implementation.
Risk: a probability or threat of damage and injury.
Compliance: confirmation that actions are meeting requirements.
Q1: What is GRC?
A1: Governance, Risk and Compliance (GRC) is a strategy or framework for managing the overall governance, enterprise risk management and compliance for an organization. I would think of GRC as a framework for taking a structured approach appropriately managing enterprise risk, meeting compliance expectations, and maintaining proper governance over the organization.
Q2: Why do you need a GRC strategy?
A2: Having an effective GRC strategy is important because it pulls together the various risk, compliance and governance functions in a complex organization into a single strategy. We’ve all seen organizations struggle with the failure to link strategy and risk, the failures of boards and executives to properly oversee risk management, and organizations that simply fail to embrace risk management. An effective GRC strategy ensures that the organization is taking a comprehensive look at risk across the organization.
With the right tactics, structure and team in place, a GRC plan can you save time and support your company in achieving business goals in controlling regulatory and enterprise risks. Do you have a GRC plan in place at your organization? Check out more info on GRC and other similar topics on our blog.