Compliance professionals frequently need to explain how companies can benefit financially from an integrated approach to governance, risk and compliance (GDC). Many professionals stick to these requirements only because it is a regulatory and legal requirement, without realising that meeting these requirements also brings good business.
On stepping back from the usual way of communicating the metrics of the effectiveness of a compliance program, one realises that this method leads to the omission of several important indicators of programmatic gaps. This includes wasted resources and information, lack of data integrity, disjointed operating strategies, unnecessary complexity and the like. Augmenting this with compliance program effectiveness indicators would ensure an aligned operating strategy and bring in integrated risk and control activities, effective oversight mechanisms and optimize resources and personnel. Eventually, business processes become streamlined and the quality of data and information improves. Compliance professionals can aid the management in understanding the effect of strong compliance processes on business results in revenue enhancement, brand and revenue protection, increased profitability and the like.
Connecting, integrating and harmonizing the key activities that affect the company’s bottom line significantly and monitoring these changes helps in accurately presenting a picture of GRC as an enabler of corporate strategy. A fundamental understanding of the business enables compliance professionals in analysing the requirements of the business, calculating transformation costs and predicting benefits to the management.
While integrating GRC will prove highly beneficial to prevent and detect compliance breakdowns, it will also provide better quality information that allows the management to make informed decisions quickly. By eliminating non-value added activities and streamlining activities that add value, the time lag is reduced significantly. Identifying redundant and inefficient areas also aids in the better allocation of financial and human capital. This leads to improved effectiveness while lowering costs significantly and enhancing the company’s reputation.
It is high time that companies start looking at GRC as more than a mere requirement, but a means of improving their quality of work that assists the management in running the business better.