GRC or Governance, Risk Management and Compliance cater to the company’s short-term objectives and long-term vision. GRC services are provided through a high performing software. Such a software supports the organization’s needs through appropriate metrics. A GRC software performs a series of different functions in order to aid the business in its operations. A highly efficient GRC software is able to improve the efficiency of the business. Additionally, it avoids double effort on the part of the company through its service offerings.
ERM or Enterprise Risk Management, on the other hand, relates to the identification of risks by the business. Necessary steps are taken to mitigate the same. Risk management is primarily done by organizations through strategic planning. It requires the businesses to take an informed decision on the risks identified. These risks need to be then categorized according to the level of their urgency and appropriate actions need to be taken accordingly.
Accommodating GRC & ERM:
Both GRC and ERM are essential for the smooth running of a business. The size of the business determines the degree of risk, governance and compliance essentials. However, all businesses require GRC and ERM guidance in order to grow. Following are some of the ways in which you can integrate GRC and ERM into your business and mitigate risk:
Identification and metrics:
The foremost step in an appropriate risk management strategy is to identify risks. Identify the risks can through the ERM initiatives of the organization. After identification, the business needs to quantify the risks. Metrics under the GRC software of the business helps give the company’s risks a definite level of urgency. The level of urgency defines the actions required to be taken for the same.
Acting and Monitoring:
After one defines the level of urgency of the identified risks, take necessary actions to mitigate them. The GRC wing handles the monitoring of actions and the ERM Division handles the actual actions. The GRC software regulates the undertakings of the organizations so that it does not face further roadblocks in its operations.
Compliance and Review:
The GRC software takes over the compliance aspect of the organization. Regulations, Standards and Internal Controls are provided by it. The GRC software looks after the compliance with the laws and governance of key areas. Once the GRC software conducts the analysis, the ERM division reviews the progress of the operations.
Though the ERM division of any organization is essential for managing risk, GRC services form an umbrella over the ERM initiatives. GRC services look into the risk management aspect and additionally also provide for the organization’s Governance and Compliance. One may argue that GRC is sufficient for business under its strategy and growth initiatives. However, integrating both GRC and ERM helps the business gain a competitive advantage as it is open to metrics as well as a hands-on view on Governance, Risk Management and Compliance.Add to favorites