Integrity-Driven Performance. New Strategy for ... - GRC Resource

As shown in Figure II-2, a new vision of compliance is needed to bridge this gap – one that putsstakeholders first; embraces internal governance, ethics and risk management guidelines as well asexternal regulations; prevents damage to the franchise rather than rebuilding it after the damage isdone; and embeds a culture of compliance and integrity-driven performance into the marrow ofthe organisation. This new vision approaches compliance with financial and operational policiesand procedures, as well as commitments to stakeholders, as seriously as it approaches legal andregulatory mandates. It views stakeholders as any group that can impact the value of theorganisation, including customers, investors, employees, regulators and society as a whole.Figure II-2: Bridging the Compliance GapA NEW VISION OF COMPLIANCEEffective Oversight & Management of Risk and CompliancewithLaws &RegulationsFinancialPolicies &ProceduresOperationalPolicies &ProceduresBusinessConductStandards(Ethical, Social,Environmental)Contracts &CommitmentsStrategicVoluntaryStandards &Best PracticesContinuous Monitoring & Process ImprovementSome organisations have learned that while technical regulatory compliance is important, meetingthe expectations of key stakeholders, including environmental and social stakeholders, can alsoimpact the bottom line. Consider the example of how major global energy organisations learnedthis lesson, as stakeholders showed they have the power to mobilise public opinion, shapeconsumer perceptions, boycott goods and services, and impact whether or not the organisation isperceived as a responsible corporate citizen.Deploying a Structured GRC Approach or Operating ModelHaving adopted a new point of view, businesses can begin to make an integrated approach toGRC operational, and therefore help drive value through their GRC activities. Since a variety ofstarting points are possible, PricewaterhouseCoopers has developed a flexible model – one that,based on our research and client experience, reflects the operation of an in-depth GRC capability.Armed with the GRC Operating Model, organisations can begin to gain an immediate understandingof how to enable best practices and stakeholder value initiatives. Typically, the skills needed tosupport these initiatives already reside within the organisation. Yet, it is the integrated applicationof these existing skills toward newly understood, strategic GRC goals that can deliver new valueto the organisation.10