Three steps to turning corporate governance into a competitive advantage
1. Enable cross-departmental communication
The first step towards building an integrated Governance, Risk & Compliance (GRC) approach is to break down information silos. According to the 2014 OCEG GRC Maturity Survey, 80% of respondents said that their organizations were using non-integrated, standalone Governance, Risk & Compliance solutions for each department – with little to no sharing of information between them. That leads to gaps in risk coverage and to overall inefficiencies since the work often gets duplicated.
That said, some information silos exist for a reason and not all information is meant to be shared at all times. Each organization has its own rules and Chinese walls in place to make sure information is exchanged appropriately.
2. Anchor Governance, Risk & Compliance in your business operations
Corporate governance is all about decision making and is an integral part of your business operations. The risk management systems and controls your organization uses do not exist in a vacuum – they are part of your day-to-day operations, for managers and staff alike.
Having a detailed schema of your processes, risks, and controls can help your managers successfully implement a GRC framework and take ownership of their objectives and associated risks.
3. Streamline Governance, Risk & Compliance processes
Having a common language and sharing smart information opens new doors to cross-department collaboration and greater GRC efficiency. However, that can also add more complexity because more information is shared to more people involved in many more processes. But that square can be circled, namely by using a common dynamic platform to distribute information, alert users, and provide summaries and personalized reports so the right people get the right data at the right time and in the right format.