Why Is Governance, Risk Management, and Compliance Important For Businesses?

Governance, risk and compliance is a strategy used to manage an organization’s risk management, overall management, and its adherence to policies. You might be wondering; “What is GRC?”. Consider GRC to be a structured approach to aligning business goals with information technology, while also managing risk and meeting policy adherence thresholds. A well-developed GRC strategy has numerous benefits: optimal IT investments, improved decision making, eradication of silos, and reduced fragmentation among departments and divisions.

 

An obvious concern to the idea of introducing more corporate ideas and procedures would be wondering whether GRC is not just another way of adding more bureaucracy. However, GRC does not concern itself with contributing to the complexity of overstuffed processes, but to clarify and condense them to ensure an easier and smoother execution. Below are some of the main benefits associated with implementing GRC capabilities.

 

Reducing Costs

The condensed approach behind GRC often realizes financial benefits since unnecessary expenditure is reduced. Focusing more on the core processes ensures effectiveness and reduced costs at the same time. Depending on the size of the process, there is a likelihood of wastage and crossover, especially with complex business processes. For this reason, GRC can help reduce costs and transform efficiency for complex processes.

 

Less Duplicated Tasks

This is where more cost-cutting is realized, but it is often about more than finances. Having similar tasks repeated across different business processes is a very inefficient way of operating. GRC can free up some teams to concentrate on other important processes.

 

Less Negative Impact

Having numerous procedures, especially those that are not working a logical way, can lead to time wastage among staff members. Condensing some activities in a GRC strategy reduces bureaucracy and paperwork, which will, in turn, improve your employee’s productivity and morale.

 

Greater Information Quality

A more consistent and centralized approach to GRC helps to speed up the business process during the gathering information phase. GRC strategies also improve the quality of information that is gathered thereby ensuring that the organization’s management makes decisions more rapidly and with more confidence.

 

More Ability to Repeat Business Processes

Another benefit is that businesses processes can be standardized across more areas. This allows staff members to repeat similar undertakings in a simplified manner with more efficiency and consistency.

 

Reputation Security

GRC strategies are important parts of any attempt to protect your organization’s reputation. For this reason, it is important to manage the three aspects of a GRC strategy efficiently. An efficiently implemented GRC strategy will provide more effective ways of ensuring reputation security.

 

Better Distribution of Resources

Getting quality information and understanding areas that are duplicating tasks will help in determining the most effective path your business should take.

 

No Silos

Large businesses have numerous problems with staff members working in silos where information and important data do not flow in a productive manner. GRC might not completely eradicate this issue, but it will reduce their potential effect on key processes.

With the above benefits in mind, it might be the right time to start considering how you can implement GRC in your organization in a way that will improve the general impact and reduce potential disruption during the implementation period. This article has attempted to highlight what is GRC and some benefits associated with implementing a well-developed GRC strategy.

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