Companies operate in a legal mess littered with all sorts of DOs and DONTs. To put it into perspective, there were about 8500 laws relating to customer information in the financial sector in 2005. Flash forward, more laws and regulations have emerged since then. Each industry has a set of rules and regulations. Trusting employees to keep up with all of them is virtually impossible.
Companies don’t have an option around legal procedures. Their only hope lies in developing working policies. Not every policy delivers on its mission. Companies need a robust way of dealing with every aspect of their business. That is where GRC comes in.
What is the meaning of GRC? It is an acronym for governance, risk management, and compliance. Recognizing the difficulty that companies go through to comply with all laws, GRC created a software that allows companies to keep track of all their legal obligations. Here are the benefits of maintaining a high-quality GRC policy.
1. To minimize legal issues
Various governmental and international authorities take breaches very seriously. Fines and revocation of licenses can happen because of a single violation. A good program should help the company navigate the legal landscape under which it operates successfully. Employees know what to do. They know when to do it. They also know how to do it. There is no room for error. Your company can stay out of trouble.
2. To streamline internal operations
A good program standardizes business functions. It tells employees how to handle each task. It cautions employees against going outside the set processes. Finally, it asks employees always to communicate, confirm, and correct, which minimizes errors and omissions.
3. To inspire a culture of trust
There is no room for uncertainty. As long as someone follows the set standards and protocols, he or she can rest assured that he or she did the right thing. Updating programs to comply with new regulations is imperative. Customers and suppliers rely on the company to comply. If they doubt your efforts, they may be tempted to look elsewhere.
4. Brings up efficiency
Employees work well when they fully comprehend the processes. The quality of the output is as good as that of the inputs. When the input is standard, the output is standard, too. Damages and defects are minimal.
5. Internalizes and simplifies the legal landscape
What makes it internal is its ability to internalize functions relative to the legal landscape. Companies in the same industry have different policies because their internal systems are different. The risks of noncompliance are not the same. Each policy makes it easy for employees to know what to avoid. It also lets employees know what to do.
6. Higher quality information
Standardized systems help in information gathering, storage, and analysis. A company can avoid common pitfalls related to data collection and use. Especially those companies using software programs, the quality of information is perfected. The company can use the information to improve its systems and processes.
GRC should translate to benefits in the company’s bottom-line. Improved processes, fewer legal issues, streamlined business operations, and reduced waste are some of the benefits that a company can reap from a good GRC program.