Governance, Risk and Compliance (GRC) define and given an example of each: Gover
ID: 3849427 • Letter: G
Question
Governance, Risk and Compliance (GRC)
define and given an example of each:
Governance
Definition making sure all the businesses are meeting required principles including its standards, government regulations, and the company’s board of directors. The enterprise must follow rules and laws of the government. in another word governance is about how an organization has to be run in an efficient and responsible manner and they report their policy towards all stakeholder.
Example: expectation of stockholders must be fulfilled in order a business to exist otherwise stockholders may withdraw with their asset.
Risk
Definition: means is the act of managing processes and resources to address risk while tracking reward.
Example: my brother bought used truck and he was thinking he would drive this car for couple of years and then he was saving money to buy new one. However, the car is a good condition and he still drives it even though he added extra features for his insurance.
Compliance
Definition: laws and commands that affects businesses and people.
Example it is necessary to put controls meaning making sure that all export and import papers are in order.
Explanation / Answer
First of all we should know about the GRC. For managing the major issues in the company of corporate governance,corporate compliance,and enterprise risk management this GRC plays an important role and it is companys corrdinated startegy.Rite now GRC tool was using so many companies and organization for security purposes.In SAP software also this tool were using called as SAP GRC.
Governance:
Using the the executives and managerial levels it deals with the the ethical management and effectiveness of the company.
It states that the the system of rules and practises that a company shoud follow and using by this the company is directed in the well manner way.Specially corporate goveranance deals with the balancing the interests of the company's of many stakeholders.For example you can take the shareholders customers, financiers,suppliers,government and community.Using by this corporate governance the company will have a framework so that in future the company can attain its objectives.For example you can take one example i.e the board of directors of the company.
Risk: The ability to mitigite the risks that can effect (hinder)the oraganization operations in effective manner and cost-efficiently.Risks can happen at any time and you should know that whether this risk will effect the companies or oraganiation structure or not.Some risks can be mitigate if the risk was in low level and through this mitigation we can achieve good in high amount compared to bad.
Compliance: It is nothing but doing a business by following set of rules and regulations whether irrespective of position of the company like manager, sales represntive etc.We should require proactive planning while we navigate the path to compliance.But make sure it does nt have to overwhelming.
Coming to GRC tool we have three componenets in this tool.Access control, Process control,Risk management.Depends on the companies requirements the compnay will select the components and will achieve the security in future.Access control deals with the permisission and authorizations.Process control deals with the the flow of business in real scenerio.Risk management completely deals with the type of risks and their uses.
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