Governance, risk management and compliance (GRC) are currently hot topics on the agenda of chairmen, managing directors and executives. Originally, corporate governance focused mainly on maximising both the company’s value and profit. Meanwhile, corporate governance goes much further: Securing a responsible corporate leadership has become an essential part of corporate governance. Top management is responsible for operating an efficient and effective GRC process and is therefore obliged to take the essential corporate order: “Steer the company with considerate foresight, manage its risks and make sure that compliance standards are met.”
Steering the company with foresight means balancing different goals related to the owners’ demands, corporate strategy, the legal environment and competition; threats which may obstruct goal achievement have to be minimised and recognised in time.
The GRC approach brings together the three main process steps for effective and efficient corporate management:
- Governance means converting the owners’ requirements and demands into clear targets and management directives by taking account of laws and regulations, market rules, competition and corporate strategies; the targets as well as the management directives have to be communicated effectively and continuously adapted to new circumstances.
- The purpose of risk management is to recognise potential threats to and deviations from targets in time and to initiate preventive measures or measures for getting back on track, while at the same time assessing the effectiveness and efficiency of these measures.
- Securing compliance with or adherence to the standards, rules and directives means detecting when rules are violated and initiating and pursuing measures in order to avoid violations in the future.
For steering the company with considerate foresight and in order to avoid compliance violations the chairperson, CEO or managing director needs a high-performance cockpit with all necessary controls for getting the required information, for facilitating different courses of action and for detecting obstacles in time so that they can be avoided.
CRISAM® GRC is the high-performance cockpit which provides the decision maker with a wide range of methods and tools for staying the course: Sure thing and safe bet!