To protect and grow your business, you need to follow governance policies, mitigate risk and stay compliant with laws & regulations.
What is governance, risk management and compliance (GRC)?
GRC meaning: GRC is an umbrella term that encompasses an organization’s approach to governance, risk management and compliance. Together, these three components help ensure that businesses successfully achieve their objectives, address uncertainties and vulnerabilities, and act with honour and integrity.
Breaking down GRC, governance refers to the rules, policies and procedures that direct and control an organization. It also provides a framework for achieving the organization's goals. Risk management is a way of identifying, monitoring, mitigating and managing risks that could pose hazards to your business performance and keep it from realizing those objectives. Compliance concerns abiding by rules and regulations – both those within the company, such as policies and processes, and those from outside authorities, such as laws and regulations. To protect your business and grow business performance, you need powerful GRC platform that provides governance risk and compliance check tools and tactics.
Why is GRC important?
GRC holds great importance for businesses as it enables them to make informed decisions within a risk-aware environment. GRC tool facilitates effective collaboration among key stakeholders, allowing them to establish policies and ensure compliance with regulatory requirements. By implementing GRC compliance, organizations can foster unity throughout the company, aligning policies, decisions, and actions.
Benefits of GRC management:
Here are some advantages of adopting a GRC strategy within your organization:
- Data-informed decision-making
GRC enables you to make data-driven decisions more efficiently by monitoring resources, establishing rules and frameworks, and utilizing GRC software and tools.
- Responsible and streamlined operations.
By implementing GRC tools, organizations can streamline their operations based on a shared culture that promotes ethical values and creates a conducive environment for growth. It facilitates the development of a strong organizational culture and promotes ethical decision-making.
- Enhanced cybersecurity
An integrated GRC approach empowers businesses to implement robust data security measures to safeguard customer data and private information.
Adopting a GRC strategy becomes crucial due to the escalating cyber risks that pose threats to user data and privacy. It helps organizations comply with data privacy regulations such as the General Data Protection Regulation (GDPR), enabling them to build customer trust and protect against penalties.
Why do you need GRC?
Safeguarding your business is your number-one priority. But with increased globalisation, greater access to third-party suppliers and expansion into new markets also come increased exposure to reputational, regulatory and financial risk. More than ever, it’s time to think differently about your due-diligence efforts. You need to ensure that new clients, suppliers or other third-party agents acting on your behalf don’t put you in danger of damaging your reputation, losing business opportunities, incurring financial penalties or facing criminal charges.
To protect and grow your business, you need powerful governance risk and compliance software tools and tactics, including:
- an effective risk-management strategy that will assist in screening, investigating and monitoring your business risk
- robust third-party screening processes
- ongoing risk-based monitoring that enables you to identify potential threats and respond proactively
LexisNexis® can help you successfully navigate the risks you face and give your GRC approach and due-diligence practices an integral boost. Our range of flexible, cost-effective risk-management tools – combined with our first-class global news and company, regulatory and legal content – empower you to assess risk potential, carry out ongoing monitoring and ramp up due diligence.
From one convenient, easy-to-use interface, the GRC software/tool grants you access to:
- more than 26,000 global news sources
- more than 1000 sanctions lists and watchlists
- a list of more than 1 million politically exposed persons (PEPs)
- more than 3000 databases on public and private companies globally
- in-depth country and industry risk-analysis reports
- more than 46 billion public records
Our third party due diligence software - Nexis Diligence+™ delivers comprehensive information and allows you to set up alerts for ongoing monitoring of critical third parties. This due diligence software enables compliance and corporate security professionals to generate customized and auditable due-diligence reports to more effectively manage supplier, ABC and AML compliance risk.
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Our CleverKYC - a third party due diligence software tool likewise empowers you to take a more proactive approach to third-party screening and manage risk more effectively. By automatically screening global sanctions lists and watchlists, PEP databases and sources of negative news, CleverKYC provides invaluable insight into your company’s risk exposure. It’s an important cog in the GRC machine.
With CleverKYC, you can:
- streamline compliance screening, so you can concentrate on what’s really important – growing your business!
- improve AML and ABC risk management by automating entity screening, reducing false positives and providing an auditable activity trail
Frequently Asked Questions
Answers to some popular questions
GRC is an umbrella term that encompasses an organization’s approach to governance, risk management and compliance. Together, these three components help ensure that businesses successfully achieve their goals, address uncertainties and vulnerabilities, and act with honour and integrity. Read more
Safeguarding your business is your number-one priority. But with increased globalization, greater access to third-party suppliers and expansion into new markets also come increased exposure to reputational, regulatory and financial risk. Read more