Governance, Risk Management, and Compliance or GRC is the umbrella term covering an organization’s approach across these three areas. Being closely related concerns, governance, risk and compliance activities are increasingly being integrated and aligned to some extent in order to avoid conflicts, wasteful overlaps and gaps.
While interpreted differently in various organizations, GRC typically encompasses activities such as corporate governance, enterprise risk management (ERM) and corporate compliance with applicable laws and regulations.
Governance describes the overall management approach through which senior executives direct and control the entire organization, using a combination of management information and hierarchical management control structures. Our governance activities ensure that critical management information reaching the executive team is sufficiently complete, accurate and timely to enable appropriate management decision-making, and provide the control mechanisms to ensure that strategies, directions and instructions from management are carried out systematically and effectively.
Risk management is the set of processes through which we help the management identify, analyze and where necessary respond to risks that might adversely affect realization of their business objectives. The response to risks typically depends on their perceived gravity, and involves controlling, avoiding, accepting or transferring them to a third party. With this service the organizations can manage a wide range of risks (e.g. technological risks, commercial/financial risks, information security risks etc.), external legal and regulatory compliance.
Compliance means conforming to stated requirements. We help organizations achieve through management processes which identify the applicable requirements (defined for example in laws, regulations, contracts, strategies and policies), assess the state of compliance, assess the risks and potential costs of non-compliance against the projected expenses to achieve compliance, and hence prioritize, fund and initiate any corrective actions deemed necessary.