GRC is a term used within the business community to describe a company’s approach to managing risks, having employees comply and establishing rules overall. The first study surrounding this GRC system was conducted in 2007 and outlines the different techniques required for a company to “reliably achieve objectives”. Those three strategies were outlined in detail and companies have since been investing in ways to enhance their approach to the GRC concept. When applied correctly, these three areas supposedly help companies get on the right track towards success. Here are a few ways to help increase your employees’ commitment to accepting a governing body of rules and complying as well.
Since its inception in 2007, the GRC model has become a favorite amongst companies looking to increase their productivity, cohesion and efficiency. Some companies buy into the system so much, that they have established teams within their organization to implement the GRC approach. A GRC team is typically comprised of a few team members who are well-versed in the entire GRC system. The team’s primary duty is to come up with ways to implement the GRC approach in order to improve the management of risks, enhance the way that employees comply with authority and manage the implementation of rules overall. These teams are in charge of implementing certain approaches to achieve these goals while also monitoring their progress and development.
How to encourage employees to comply.
One of the trickiest aspects of the GRC system is encouraging employees to comply. Everyone has natural instinct to resist anything that is requested of them. This problem seems to exacerbate when these requests are coming from a hierarchy. Without a certain level of compliance, companies cannot function properly. In order to encourage employees to comply, organizations need to establish a certain level of trust and cohesion between workers and managers. This ensures that each employee understands the reasons that decisions are made and how these choices will help the company grow overall. This understanding will lead to more compliance and cohesion overall. Employees are more willing to comply when they understand the reason for a particular request.
How to manage and establish control as an organization.
Governance is the first aspect of the GRC system and relates to an organization’s ability to execute on their managerial approach in order to maintain control. While this may sound rather Draconian, no company is able to function without a strong, hierarchical structure. GRC teams can help improve this governing structure by ensuring communication between different sectors of the company is accurate, timely and effective. These teams can also help ensure that the decisions and rules being made are understood throughout the entire company.
How to manage risks within an organization.
Risk management is the final component of the GRC system and refers to an organizations ability to monitor, predict and react to potential risks while reducing the amount of negative impact on their business. While there are many potential risks to assess, the GRC system is primarily concerned with legal and regulatory issues. An internal GRC group can help analyze any potential risks within an organization and refer the problems to third-party professionals to be solved in a timely manner.
GRC has become an integral part of companies throughout the country. These tips can help organizations ensure that these approaches are implemented successfully.