GRC- GOVERNANCE, RISK MANAGEMENT & COMPLIANCE

HR GLOBE CONSULTINGwww.hrglobeconsulting.com

INTRODUCTION

• GRC : an integrated approach , aligned to - Avoid gaps. - wasteful overlaps. - Conflicts in organizations.• Widely adopted and required in organizations today.• Cases where in it is not followed leads to – E.g.- Satyam Computers Fiasco!

ENTERPRISE RISK

MANAGEMENT

CORPORATEGOVERNANCE

CORPORATE COMPLIANCE

RISK MANAGEMENT

• Works upon analyzing the risks which can impact organizations to reach its objectives.

• Risks can come from- uncertain financial markets.- Project failures.- Natural causes and disasters.- Legal liabilities.- Credit risk.

PRINCIPLES OF RISK MANAGEMENT

CREATE VALUE

BE AN INTEGRAL PART OF ORGANIZATION

PART OF DECISION MAKING

ADDRESS UNCERTAINITY & ASSUMPTION

BE TRANSPARENT AND EXCLUSIVE

BE DYNAMIC, ITERATE & RESPONSIVE TO CHANGE

- Overall management approach used by senior executives to control & direct organization.

- Focus lies on appropriate management decision making.

- To ensure strategies , directions & instructions are followed systematically.

Good Corporate Governance plays a vital role in integrity & efficiency of financial markets. If poor, it weakens company’s potential & opens doors to frauds. Better Governance , helps in out performing. Helps in creating an edge over competitors.

NEED OF CORPORATE

GOVERNANCE

CORPORATE COMPLIANCE

• Rotates around confirming stated rules.

• Interest in this was sparked by SOX i.e Sarbanes Oxley act.

• It is responsibility of employers and employees equally.

• Open line of communication between compliance officer & employees is critical to successful operations.

WHAT IF NO GRC??

NO RULES & REGULATION

MISMANAGAMENT

DOWNTURN OF ORGANIZATION

HAMPERS GROWTH

LACK OF TRANSPARENCY

CONCLUSION

The effective Corporate governance, risk management and corporate compliance –

- Attracts investments.- Helps keeping the companies directed & controlled.- Ensures accountable, transparent & fair relationship

in the organization.- Improves operational performance.- Gives better access to capital.- It gives higher firm valuation.- It improves sustainability.

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