The Top Ways to Succeed in Governance Risk And Compliance
Each passing year creates a new record in terms of corporate costs associated with government and industry regulation compliance. Some of these costs are unavoidable – they are just the cost of doing business. However, a good chunk of the costs is the result of suboptimal handling of certain aspects and this is directly caused by improper training and a lack of understanding about risks, regulations and compliance.
It is very likely that the regulations and costs associated with compliance will only increase in the future. It is not possible anymore to have a single department dealing with risk and compliance while the rest of the organisation operates in an independent environment. The risks and their associated costs are too great.
Some industry observers felt that the rise in the demand for risk and compliance officers in 2008 and 2009 was temporary and a knee-jerk reaction to the financial crises. The truth is that since then risk and compliance costs have skyrocketed as regulators, shareholders and the public have become less tolerant of compliance failures. Furthermore, the damage associated with certain risks like environmental or reputational is now much greater thanks to the ease and speed of information dissipation.
Therefore, some companies are focusing aggressively on governance, risk and compliance training across the board.
The new regime
How risk and compliance training used to work (or still does in some cases), is that the employee is provided with a lengthy document which covers all aspects related to risk and compliance for their job function and they just have to sign at the very end. This read and agree format, however, is not enough anymore. It does not prevent any compliance failures and certainly does not absolve the company of any wrongdoing. The right way to deliver risk and compliance training is through a customised, iterative and interactive approach.
Thus, training programmes are specifically created for a particular job profile and delivered through classroom sessions or web sessions. For example, training in environmental risks might be more important for a manufacturing company rather than a trading one. Business continuity training might be more relevant for senior and middle management rather than the workforce on the ground and so on.
Customised and personalised GRC (Governance, Risk and Compliance) training is certainly not cheap. However, it is essential because it actually imparts the right knowledge to the right employee. It might be compared in a way to purchasing an insurance policy – you pay a large sum in premiums but when and if something happens, the policy more than pays for itself!
GRC training – ideal for professional development
Employees can greatly enhance their worth to their respective organisations by staying on top of all the developments which affect governance and compliance. The truth is that regulations are becoming more complicated and reputational risks are greater than they have ever been before. In such an environment, the manager who succeeds will be the one who understands the criticality of good governance, has a sound understanding of the regulations which affects their industry and can effectively mitigate business risks.
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Our Renaix Guide to Governance, Risk, Compliance and Internal Controls provides information on trends in the industry.
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