Governance, Risk Management, Compliance (GRC)
Governance, Risk Management, Compliance: Today's Business Necessities
The recent increase in the number of compliance initiatives such as Sarbanes-Oxley (SOX), ISO, and BASEL II, has forced businesses around the world to reexamine the ways in which they do business. The high cost of non-compliance has resulted in today's business leaders adopting comprehensive GRC initiatives, with the majority of fortune 1000 corporations listing GRC as their number one goal in business development. Offering a variety of modules such as Risk Management, Controls, Business Intelligence , and Business Rules , the Enterprise Process Center can help your company avoid the high costs of compliance. Leaders in virtually every industry today use the Enterprise Process Center to effectively model and align their business processes with GRC strategies.
What is GRC?
GRC, or Governance, Risk Management, and Compliance, is an integrated approach for businesses to effectively achieve Enterprise Risk Management (ERM). Although distinct entities, each of GRC's components work together to create a comprehensive method of ensuring sustainable business operations.
Governance refers to the high level monitoring of business policies, ensuring compliance with policies and engagement in corrective action when non-compliance is detected. Risk management refers to an organization's ability to identify and prioritize risk, while setting a tolerance level to which certain risk is acceptable. Risk management utilizes a set of controls and tools available to corporations to ensure the avoidance of risk. Lastly, compliance is the process by which companies document procedures and controls, and monitor policy initiatives in relation to legislation and industry initiatives.
Together, GRC works to ensure that your organization's operations are sustainable, and that business operations are conducted in an ethical, legal manner. As a result of the various compliance initiatives across specific industries, the exact meaning of GRC depends on your industry sector. Most of all, GRC is what you make it – the degree to which your company complies with initiatives is reflected in the stability and professionalism of your operations. What does GRC mean to your business?
Governance, Risk Management, Compliance: Creating Sustainable Business Operations
Stakeholders no longer see high profits as the only indicators of success. What is required today is transparency, executive accountability, and tight corporate governance. The Enterprise Process Center is ideally suited to help support companies in their quest for process improvement and compliance/governance certification.
- Identify & Manage Risk – by visually representing your processes, EPC highlights the risks associated with tasks at every level of operation. EPC's risk management module calculates the impact and likelihood of each risk and creates a gross risk indicator.
- Mitigate Risk – implement controls where risks have been identified and calculate the effectiveness of each control. By imbedding controls within your business processes, risks can be identified and avoided before they arise.
- Increase Governance – EPC's Business Rules module formalizes company policies by modeling operations, definitions, and constraints to be followed by employees. These rules define and constrain company operations to ensure that the highest level of corporate governance is maintained.
- Optimize GRC Strategy– EPC's Business Intelligence module uses IBM's Cognos software to give your company the information necessary to implement the proper GRC strategy. BI allows for enterprise reporting with real-time statistics, as well as the ability to compare your statistics against industry benchmarks. Business Intelligence coupled with GRC strategies leads to greater ERM scores, more stability, and fewer crises.
- Improve Strategic Decisions – by allowing you to clearly visualize your business processes and the risks associated with each task, EPC helps managers mitigate risks and improve the quality of strategic decisions.
- Avoid The Costs Of Compliance – EPC offers a fully audited environment. Full control over process and document change, clarity of inherent risks, and the ease with which process knowledge is communicated across the company, enables your company to instill the disciplines necessary to successfully complete compliance programs.
- Use Industry Frameworks – the Enterprise Process Center is built around the methodology of leveraging industry best practices and frameworks to increase the efficiency and sustainability of your company's operations. By using Key Risk Indicators (KRI) and Key Performance Indicators (KPI) as benchmarks, and industry risk frameworks like Basel II, the EPC allows you to stay on top of your operations and maintain a competitive advantage.
The Enterprise Process Center enables your company to centralize the management of policies and compliance initiatives. Overall, the EPC is a tool that offers a comprehensive solution to your company's GRC initiatives. In a world where compliance gains importance every day, professionals are looking for a way to simplify Governance, Risk Management, and Compliance. To achieve this, corporations must leverage technology in a way that minimizes the amount of manual work needed, while keeping GRC as the highest priority. With the Enterprise Process Center, corporations can do exactly that, letting technology do the work for them.