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

Cost-management practices measure cost, and examine where, how and why resources are spent.Cost management helps establish target levels of performance required to get the expected returnon GRC investments. Conversely, good performance-management practices measure effectivenessand efficiency of current programmes. Performance management can therefore point to gaps,inefficiencies and improvement opportunities that may need to be supported by additional investment.For example, companies that undertake a comprehensive compliance risk assessment for thefirst time often find that capital is being allocated to a compliance area that was important inthe past, but may no longer be necessary, while another, more risk-relevant compliance area isunderinvested and therefore exposing the enterprise to substantial risk. New GRC officers oftendiscover the challenge of transforming compliance processes that may have been adequate yearsago, but are no longer sufficient to protect the franchise and enhance the brand.Companies that understand these elements and relationships are in a better position to managetheir investments, and are therefore better equipped to drive value for the organisation. However,in the absence of true comprehension of GRC costs and the results of performance, valuemanagement cannot be realised.Companies able to manage value through cost and performance management can demonstrate that:• Accountability, integrity and fiscal responsibility are embedded in management processes.• A performance management system, including objectives, key performance indicators,performance targets and ownership, is in place.• Spending is aligned with the organisation’s objectives – capital is allocated to its highestand best use in the GRC area.• Value and benefits of an integrity-based compliance programme are embraced within theorganisation.27