Today, according to Evermerchant, every 30 seconds over $1.2 million worth of products are sold online globally. The other side of those coins laid risks, rules, and regulations. Organizations large and small, public or private, non-profit or government related, are all susceptible to cybersecurity risk and other risks that have multiplied exponentially with instant information access globally.
Does your organization have a website? Do you sell products online? Do you have a social media presence?
If you answered yes to any of these questions, you are susceptible to cybersecurity risk. In addition, you are still susceptible to all the other ‘offline’ risks existing in your organization, including operational, legal, financial, market, credit, IT, reputation, and strategic risk.
So how can you manage this conglomeration of internal rules, risks, and regulations effectively so you can survive, thrive, and outpace competitors?
Traditionally, organizations have been managing risk through enterprise-wide risk management initiatives, whereby they identified risks, prioritized them, and built mechanisms and plans to prevent them or mitigate their impact. Also, they focused on governance by setting up a framework of rules based on which they made decisions. In addition, they had to adhere to all the laws, rules, and regulations of their industry put in place by their state, country, or multilateral organization. So they expended lots of resources, time, and effort on three seemingly unrelated, parallel, and often overlapping initiatives.
Today, organizations are managing risk, governance, and compliance through a GRC strategy. GRC (Governance, Risk, and Compliance) is the three-pronged overarching umbrella discipline organizations use as a 3-in-1 approach to make sounder decisions, better manage risk, and play more effectively by the rules to survive and thrive in the competitive global economy. The 3-in-1 components are:
1. Governance: The framework of internal rules that guide decisions
2. Risk Management: The system to identify, monitor, and mitigate risks
3. Compliance: The platform to abide by all applicable laws and regulations
So, how can you implement GRC? Why is it important? And what does it mean for you?
Organizations are focusing on building sound GRC framework to strengthen their ability to respond to risk and competitive pressures by standing firm on their governance platform and adhering to compliance requirements.
Building a GRC framework starts with defining the governance framework of the organization. By defining the values it lives by, an organization can better articulate its vision and mission and can translate them into key performance indicators, metrics, and strategic goals. GRC also requires identification of all risks across the organization and across categories of risk; prioritization of the risks and setting up controls or mechanisms to prevent them or mitigate them. Monitoring and reporting the risks is also fundamental as it enhances an organization’s ability to detect early signs and proactively contain a situation before it snowballs. In addition, organizations need to do all of the above while in compliance with numerous laws, rules, and regulations governing their sector, their industry, and type of business.
Implementing a GRC framework is important because it builds accountability in an organization, it helps information flow, it enhances sound decisions, and it increases revenue by mitigating risks, cutting losses and regulator fines, and improving brand reputation.
Setting up and implementing a GRC framework is complex and can be cumbersome if not done systematically with a strategy and a project management plan in place. While organizations can bring in external consultants to help set up GRC, successful GRC implementation requires internal GRC development, implementation, communication, and ultimate ownership by junior, middle, and senior management alike.
For you, GRC means a 3D, 360-degree understanding of how to drive your team to deliver results. GRC will give you a broader range of options on what to do for the risks that matter, when, and how. GRC can help you become more nimble in your operations, allowing you to dedicate more resources to developing and delivering products, services, and solutions for your clients. GRC means fewer headaches for you and your team. A sound GRC platform can provide you with a 3D perspective on rules, controls, and solutions so you can focus on developing products and services for customers and thrive in today’s globally competitive economy.
With GRC you get 3-in-1 capabilities.
You can do three complex things at the same time, all the time:
- Align with your organization’s values, KPI’s, and strategy
- Uncover the biggest threats and set up monitoring systems to alert you before things go wrong
- Ensure you are always operating within the lines
So, ready to survive and thrive with 3-in-1 GRC this quarter?
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