GRC: Where Does It Stand Now?
Governance, risk and compliance, or GRC for short, is one of the more complex parts of your business. So how should you think of it?
Many experts in the field believe that you should structure your GRC initiatives like macro-objectives. This is a long journey that may take you a couple of years to fully understand.
One of the things that you should understand is, compliance doesn’t mean you have to comply.
UPS operates in New York City, and one of the laws is that parcel vans cannot stay parked on the side of the road or in a personal parking space. However, they do it anyway, just so their business can function. They end up paying a fine but their profits balance out.
Let’s look at a few more interesting GRC points that are important for this year.
What is GRC? (Governance, Risk and Compliance)
Where does GRC Operate?
The professionals in this area will operate in some key departments, in teams or if you don’t have your own then they will be accessed via consultancy firms. They will be legal, risk and executive.
Risk professionals will operate in the risk department or team. They’ll analyze your risks and opportunities for the future and present day.
Compliance is usually left to the legal and administration teams. These are professionals who know the law of the industry you are in and what kinds of ways you need to improve within your business.
Lastly, it will be the executives who take on the governance. Your governance policy is so critical to have good GRC controls and understanding.
It’s always wise to speak with an industry expert that can let you know what kinds of equipment you need for the kind of products you are making.
For example, if you are making medical products such as liquids, then you need a proper pharmacy fridge. This will keep your medicine cool, allow you to monitor the temperate and also, give you a 5-year warranty. They use modern materials which will be something that compliance laws often cite.
You may find that some compliance laws require you to make a product in a certain material, such as “anything over 1 ton, need to be made with only steel hinges” or something to that degree.
Speaking with compliance professionals to know what you need to do to avoid a penalty, is so important.
Image Credit: Pixabay
Increasing Risk Management
Staying ahead of GRC can be done with an epicentre method. This will be done by the risk management team.
They can list all the risks that your business is exposed to. They will make a risk register that will list risks that are green, amber or red.
This kind of matrix chart method lets you know what action you need to take now, and what may pose a risk down the road. It makes GRC so much easier to manage and understand for your managers and business goals.
Governance, risk and compliance is a very important part of doing business. It keeps the playing field level among competitors and keeps your business from making unsafe products and risky moves.