Governance is a compiled set of rules, regulations, or frameworks that assist a company to achieve its targets. It specifies the obligations of key stakeholders, such as the board of directors and senior management. The following are the aspects of good governance:
- Integrity and accountability
- Open exchange of information
- Conflict management procedure
- Handling of resources
Financial, legal, strategic, and security risks may be encountered by businesses. Therefore, efficient risk management is needed to identify these risks and provide appropriate strategies to resolve them. The majority of companies use enterprise risk management that helps to understand possible issues and eliminate losses.
Compliance is abiding by the rules, laws, and regulations. It covers both internal corporate policies and legal and regulatory obligations established by industrial entities. In GRC, compliance entails implementing policies in place to make sure that business operations adhere to the relevant regulations.
Benefits of GRC:
Adopting GRC programs aware you of the risk and help you to take better decisions. A good GRC program motivates chief stakeholders to develop policies that adhere to the regulatory requirements. This help to unite the company based on its rules, decisions, and actions. The following are its benefits:
- Decision-making based on data
Efficient management of resources, establishing standards or guidelines, and utilizing GRC techniques can help you to timely make decisions based on data.
- Responsible operations
GRC serves to organize operations in a shared culture that upholds moral values and provides an environment sustainable for growth.
Businesses can implement GRC to achieve the following tasks:
- Supervise policies
- Monitor risk, and ensure compliance
- Focus on various regulatory changes that can leave an impact on the business
- Encourage various businesses to collaborate on a single platform
- Improve the efficiency and accuracy of internal auditing
Process of GRC:
- You must identify the goals you want to achieve by using a GRC model.
- Examine the present procedures and technologies that you adopt to manage governance, risk, and compliance. This can help you choose the most efficient GRC frameworks and tools.
- Senior executives must be aware of the benefits of executing GRC for rules and regulations, its role in creating a risk-aware environment, and taking decisions.
- You must examine the GRC framework on a single business process to check if it fits your goals. These testing assist you in altering the GRC system before introducing it to the entire company.
- GRC is not an individual task. Senior executives play a role in developing key policies. Additionally, legal, finance, and IT staff are also credited for the prosperity of GRC. Each employee must be assigned roles and responsibilities to report and effectively resolve GRC problems.
Services from AKA:
- Establishment of the Corporate Governance Framework to supervise the proper Operating and Management.
- Creating policies and procedures.
- Create gap analyses and performance reports on the governance procedures.
- A curator for recording all the policies and procedures.
- Evaluation of the effectiveness of the budget.
Internal Audit & Risk Management
- Create a yearly risk-based audit plan.
- Execute audits of the operations that correspond to the approved audit plan.
- Comply with the policies and procedures.
- Regularly report and provide a summary of the audit’s observations’ closure status.
AKA offers practical support in creating, implementing, and optimizing advanced risk management strategies to cater needs of the business and reduce the risk to a minimum. We identify and assess risk specific to the organization including categorization, prioritization and mapping of risks. We strategize organizational risk map coherent to achievable business objectives.
- Establishment and Implementation of an Enterprise Risk Management Framework (ERM).
- Development of a Risk Register.
- Conduct Risk Assessment of contracts, operational and strategic business actions, and projects.
- Instruct employees in a productive application of the ERM framework and up-to-date risk registers.
- Testing transactions in real-time to ensure compliance with the relevant governance structure.
- Analysis of transactions to use for informed decision-making in real-time.
- Proper instruction to employees for Compliance Management.