Governance, Risk & Compliance Frameworks
Why is governance risk and compliance important?
To ensure that businesses protect their information, have consistent cohesion departmentally, and follow all governmental regulations, a governance, risk and compliance, (GRC) program is important as new regulations can be overwhelming if a company doesn’t have a person or team to ensure updates are in place.
- Resources—required to conduct business, including strategies, policies, standards, procedures, organizational structure, roles and responsibilities, people, processes, technology, information, physical, financial and intellectual assets, and third parties (suppliers, vendors and contract employees).
- Business attributes—the key attributes of a business include:
- Performance, including goals, targets, outcomes, profitability and SLAs, etc.
- Risk, including financial risk, credit risk, market risk, strategy risk, operational risk, fraud risk, reputational risk, information security risk, technology risk and compliance risk, etc.
- Compliance, including regulatory compliance (SOX, PCI/DSS, GDPR), legal compliance (labor laws), organizational compliance (policies and standards), security (human, physical and information security), quality, ethics and values.
- Governance, management, and operations—governance involves setting directions, optimizing risks and resources, and monitoring performance and compliance to achieve an organization’s objectives. It can be broadly classified into corporate governance, business governance, IT governance and legal governance. Management involves planning, organizing, leading, coordinating, controlling and reporting. Operations includes executing the process and function.
- Controls—in order to realize value from the business, resources should be utilized efficiently and effectively, and business attributes should optimized. This is only possible when appropriate controls are implemented and executed. The controls can be classified as management controls, process controls, technical controls and physical controls. Controls are applied to the resources as well as the attributes.
- Assurance—independent assurance is required to ensure that controls are designed and operating effectively, and compliance requirements are met consistently. It is the responsibility of governance to monitor and obtain assurance. Assurance will be primarily through audits. There are several types of audits. Internal and external audits, certification audits, financial audits, IT audits, compliance audits, process audits and security audits, etc.
A good GRC Framework is reviewed periodically at monthly/quarterly reporting events to provide a complete audit trail of risk identification and awareness, risk management, understanding and mitigation and remedial plans.
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Thoughts on Organisational Charts
Regulatory Complaint Handling & The FCA
Compliance Annual Reporting Requirement
The Importance of Good Management Information (MI)
Directors and/or Partners Responsibilities and Further Training
Compliant Financial Promotions – Advertising
Governance Risk & Compliance Frameworks
The Importance and Value Of The MLRO’s Report
Compliance Bench-Mark Check: Annual Policy Review
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