GRC Best Practices for CEOs
- August 11, 2021
- Quantivate
Through times of great change, organizations require exceptional leadership to remain resilient and competitive. In business operations, executives need to develop forward-thinking governance, risk, and compliance (GRC) management strategies to overcome immediate and future obstacles.
Setting a path for cross-functional best practices in your organization can resemble the skills of a good gardener. A horticulturalist first establishes a baseline—reviewing the environment, understanding the landscape, defining objectives, and determining what conditions are necessary for vegetation to thrive—then acquires the tools they need to ensure success (governance). The gardener also needs to be prudent in planning for the unexpected, such as weather conditions or pests (risk), while remaining cognizant of the environmental impact of their work, such as using sustainable, ethical practices (compliance).
The same is true in business: you’re growing something that can be left vulnerable to the elements without the proper precautions, procedures, and foresight. Each season presents new variables and challenges.
The modern organization’s vulnerabilities are complex, ranging from personnel and health and safety; to financial mismanagement and compliance liabilities; to third-party, supply chain, and cyber risks. And as the business environment continues to change, senior managers and other stakeholders find themselves wearing multiple hats. To equip their organization for success, leaders must practice foresight in pursuing GRC program maturity and continuous improvement by…
1. Setting the Tone for Sound Governance
In establishing a baseline for the environment, managers must set the tone to manage risks and establish robust compliance strategies. To support GRC best practices and program scalability, management processes must be technology-enabled to provide visibility and ensure alignment with strategic goals.
Read more > Setting the Tone for Governance and Ethics: Guidance for GRC Leaders
2. Unsiloing Risk & Compliance Management
Management initiatives must consider both top-down and bottom-up changes to avoid siloed GRC data and processes. Effective data management and reporting is key in helping managers make better decisions at operational and policy levels and can also have a direct impact on the bottom line.
The benefits of implementing an integrated approach to risk and compliance management are virtually unlimited. Investing in GRC program capabilities and visibility delivers returns in:
- Improving information flow through shared data and standardized processes
- Avoiding hefty fines for compliance failures
- Strengthening cybersecurity
- Reducing employee headcount and time allocated to GRC management
- Improving data access and accuracy
Considered from this perspective, implementing GRC best practices becomes a competitive advantage, enabling your organization to be more agile and transparent.