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

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In our view, a leading GRC capability requires that an organisation’s board and management haveensured that the following GRC attributes are in place:• Organisational values, ethics and behavioural expectations are known, clearlycommunicated and alive in the organisation.• Strategic business objectives are understood and the organisation’s people, processes andtechnology are optimally aligned to support the achievement of strategic objectives.• Risk appetites and tolerances within business units and across the enterprise are appropriateand aligned with the expectations of leadership and stakeholders.• Key risks have been identified and assessed and are being actively managed and mitigated.• Adequate culture, process and technology controls are in place to ensure performance andreporting expectations are met.• Information reported to management, the board and stakeholders is accurate, reliable,timely and complete.• Compliance exceptions are identified and actions are taken in a timely manner.• The right operating model is in place to drive sustainable performance and realisestakeholder value.Boards and management need to know and demonstrate that the organisation has a disciplinedapproach to ensuring these capabilities are fully operational across the enterprise. Further, boardsand management need to demonstrate that the organisation has an approach to meeting changingrequirements and expectations, and for ensuring that those changes are addressed in an ongoingmanner. The GRC Operating Model helps them do so. (The GRC Operating Model is discussed ingreater detail in Section IV of this paper.)Utilising Key EnablersOrganisations today must cope with a myriad of external regulations and internal standards,stakeholder pressure and scrutiny, an increasing need for real-time decision-making throughoutthe value chain, and increased complexity through third-party relationships such as outsourcingpartners. This dynamic, combined with the prevalence of manual processes involved incompliance activities 7 , poses a significant challenge to the organisation (particularly for large,decentralised organisations) and considerably increases the likelihood of compliance failures.127 From META Group research conducted on behalf of PricewaterhouseCoopers: When asked, “What are the key enablingtechnologies or systems you use to support your compliance processes?”, “Manual processes” was the top response.© 2003 META Group, Inc., Stamford, CT, U.S.A.
A set of four key enablers must be addressed to help achieve effective GRC performance and tosuccessfully apply the GRC Operating Model. These enablers are:• Instilling a culture of business integrity and ethical values• Integrating GRC into core business processes• Measuring performance and calculating value• Achieving effectiveness by leveraging technologyInstilling a Culture of Business Integrity and Ethical ValuesCulture, integrity and ethics are the foundation for sustainable value. Core values guide decision-makingat critical junctures, such as when there are no rules, when rules are unclear or when existing ruleswould lead to the wrong conduct. The challenge lies in how to embed the desired GRC skills,behaviours and attitudes into everything that the organisation does.Business integrity implies a consistency of philosophy and actions. The telltale signs of an organisationthat takes its commitment to integrity seriously are unmistakable:• Leaders drive consistent governance, ethics, risk management and compliance across theorganisation to meet strategic business goals.• The culture balances open thinking with adherence to standards.• The organisation deploys process-driven learning related to GRC.• Integrity and compliance are valued as core competencies.• Leaders consistently communicate, demonstrate and reward the right way of doing businessin accordance with core values.Managing culture change and GRC is often quite complex. Successfully managing this changerequires pragmatic techniques to help ensure that recommendations are actionable and that theydrive sustainable benefits.13
Page 6 and 7: Governance Reforms: A Snapshot of R
Page 8 and 9: Through our research and client wor
Page 10 and 11: An integrated approach to GRC prope
Page 12 and 13: As shown in Figure II-2, a new visi
Page 16 and 17: Integrating GRC into Core Business
Page 18 and 19: Interestingly, many of the technolo
Page 20 and 21: PricewaterhouseCoopers developed th
Page 22 and 23: • The organisation deploys proces
Page 24 and 25: Governance ProcessesIn order to exe
Page 26 and 27: Successful GRC Process IntegrationG
Page 28 and 29: GRC performance enables greater bus
Page 30 and 31: Cost ManagementThe term “Total Co
Page 32 and 33: Organisations face an abundance of
Page 34 and 35: The Emerging Role of Technology: En
Page 36 and 37: Interestingly, in many organisation
Page 38 and 39: IV. The Governance, Risk & Complian
Page 40 and 41: The GRC Operating Model is both sca
Page 42 and 43: Envision Performance Driven by Inte
Page 44 and 45: Improve and Measure SuccessDevelop,
Page 46 and 47: The GRC Operating Model promotes op
Page 48 and 49: Implementing a sustainable reportin
Page 50 and 51: Appendix: Governance, Risk and Comp
Page 52: www.pwc.com/governance© 2004 Price

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