21 Jun 2021 Ankit Chadha

Here's Why Your Business Needs a Structured Governance, Risk and Compliance Framework

Governance, Risk and Compliance| TRC Corporate Consulting

Many people immediately think of a platform when talking about Governance Risk and Compliance. However, GRC Consulting is much more than that. It is essentially a capability that allows a business to reach its objectives with responsibility and strives to enable compliance and risk management. Governance, Risk and Compliance is a set of practices that run across the different verticals of an organization and are essential for supporting the principled performance of an organization at every level. These practices can include –

  • The work done by internal audit, compliance, finance, HR, legal or IT departments

  • The tasks executed by the business lines, the executive suite, or the board

  • The outsources tasks executed by external parties and stakeholders

Let's take a look at the three different elements of governance, risk and compliance services and try to understand them in detail:

  1. Governance 
    Governance refers to the means through which an organization is directed or controlled. In governance, risk, and compliance services, governance is necessary to set direction through strategy and policy. Moreover, it is also critical for evaluating performance and monitoring results.

  2. Risk 
    Risk refers to a possible event that can hamper the performance of the business or cause harm or losses in any way. In governance, risk and compliance services, risk management makes sure that the business analyses, identifies, and takes control of possible risks that can derail or delay the achievement of goals.

  3. Compliance 
    Compliance refers to the act of ensuring that the standard and guidelines are followed or that accurate practices are being followed consistently. In governance, risk, and compliance, this element ensures that the organization takes the necessary measures and exercises control to make sure that compliance requirements are met.

While these are the three most obvious aspects of governance, risk, and compliance, in reality, the scope of GRC Consulting doesn't end at Governance, Risk and Compliance but also covers aspects like assurance and performance management, information security management, quality management, ethics and values management, and business continuity management.

Let's take a look at a few benefits of having a well-defined GRC tools and framework for your business.

  • By ensuring proper compliance, you can avoid noncompliance fines and ultimately save money. Moreover, companies with GRC solutions in place enjoy lower insurance premiums which also helps in saving money.

  • Predicting risks before they occur or mitigating them as soon as they occur can help you avoid unnecessary expenditure on compliance issues. This can prevent fines and audit costs. In other words, getting ahead of these risks can help you save a lot of money.

  • A robust governance, risk and compliance strategy can decrease data silos within your organization. Data and strategy sharing between your internal legal, finance, IT and other teams encourages transparency and cross-functioning. Siloed data, however, can result in inaccurate information, contribute in risk. It could also lead to a duplication of efforts. Data sharing brings forward dependencies and help streamline oversight for the leadership.

  • Enhances operational efficiencies lead to more streamlined business processes. Having a well-defined GRC framework helps to create a unified operational strategy and leads to consistent operations all across the organization. Enhanced quality, the ability to proactively locate data, and consistent processes can help your workforce to function coherently.

  • A holistic GRC solutions framework provides resolution to immediate as well as long-term risks while also allowing a robust and quantifiable control environment.

  • Through appropriate governance, risk, and compliance frameworks, non-value-adding activities are reduced and value-adding activities are made more collaborative. This reduces TAT and eliminates unnecessary variations. Ultimately it results in an increase in efficiency and traceability.

  • Governance, risk, and compliance frameworks allow the ability to get a complete picture of the processes of the organization and allows leadership to control and access relevant content and understand the applicable risks and challenges while analyzing the business unit profile.

  • It also helps improve the alignment of objectives with values with the mission and vision of the business. This results in better decision making processes.

As businesses these days strive to ensure that they are able to make better decisions, enhance efficiency and stay compliant across all operating ecosystems, they also need to execute all appropriate business strategies to align revenue with effective operational objectives. An effective governance, risk, and compliance program helps streamline risks with their compliance requirements and the respective government policies.  All businesses must consider implementing a GRC program in their workplace as it can help in ensuring consistent and effective communication, cohesive and agile information sharing, and success across all workplace strategies.

There are numerous risks in business as it involves governance, risk management and compliance. Changing regulations can be overwhelming for a business owner to deal with if there is no team or professional to ensure everything is in place. Moreover, the lack of collaboration across departments can also lead to miscommunication as each department will function on its own rules and guidelines.

However, another cost-effective and time-effective way of handling GRC Consulting is through outsourcing these processes. Outsourcing can help prevent long-term liabilities and help you manage your governance, risk, and compliance framework with the help of skilled professionals with years of relevant experience.

At TRC Corporate Consulting, we help you transform dynamic business risks into sustainable growth prospects and offer long-term gains. By reconstructing or customizing the framework, focus, and capabilities of the compliance risk management processes, we question the traditional methodology of governance, risk, and compliance services.

As a result, TRC professionals work in partnership with you to create and implement governance, compliance, and risk management strategies to receive a competitive head start, a better brand image and lucrative financial returns. So be our treasured partner for any GRC solutions and unlock the full potential of your business. For any questions, feel free to get in touch with our team.