Governance Risk and Compliance: Importance, Scope and Management

Governance and Risk Compliance 1
Governance Risk and Compliance

Governance and Risk Compliance 2
Executive Summary:
This report discusses the present risk management process in context of the compliance
management which also includes the formation of the money laundering/financial crime
prevention teams. Various approaches related to the Governance, Risk, and Compliance (GRC),
and these approaches help in managing the different issues related to the organization. This
report further discusses the implementation of the appropriate accounting policies and disclosure
policies, and also ensures the effectiveness of the internal financial controls.

Governance and Risk Compliance 3
Contents
Executive Summary:....................................................................................................................................2
Introduction:...............................................................................................................................................3
Discussion:...................................................................................................................................................4
GRC & Its Scope:......................................................................................................................................4
Importance of GRC:.................................................................................................................................5
Risk and Compliance Management:............................................................................................................5
Functions supported by the GRC approach:............................................................................................6
Integrated approach for compliance risk management:.............................................................................8
Risk and compliance management program:..........................................................................................8
Anti-money laundering/ financial risk Team:...........................................................................................9
Implementation of risk and compliance management program:............................................................9
Recommendations:....................................................................................................................................11
Conclusion:................................................................................................................................................11
References:................................................................................................................................................11

Governance and Risk Compliance 4
Introduction:
Governance, Risk, and Compliance (GRC) is considered as the coordinated policy of the
company which mainly manage the large number of issues related to the corporate governance,
enterprise risk management (ERM) and corporate compliance in context of the regulatory
requirements. GRC is the combined groups of the capabilities which mainly ensure that company
achieve all the objectives, able to address the uncertainty, and also conduct all its actions with the
integrity (OCEG, n.d.).
GRC is not the concept which is covered under the three words that are Governance, Risk, and
Compliance, which means it is more than these three words. GRC is the concept which focuses
on the critical capabilities of the organization that must work together for the purpose of
achieving the principled performance. These capabilities of the organization include governance,
management, performance, risk, and compliance activities. This concept highlights the working
of different areas such as internal audit, compliance, risk, legal, finance, IT, HR, and also the
lines of business, executive suite and the board itself (Narasimhan, 2017).
This report mainly addresses the present risk management process in context of the compliance
management which also includes the formation of the money laundering/financial crime
prevention teams. This report is prepared in context of the Banking Sector in context of Banks of
International Settlements (BIS) in the jurisdiction of the United Kingdom.
Structure of this report includes the description related to the each stage of the risk management
process, and also the explanation related to the requirement of this process. This report also
includes the recommendations for the improvement of the existing process. Further, it includes
the discussion in context of the effectiveness of the management of risk by the function of
compliance.
Discussion:
GRC & Its Scope:
Governance, Risk, and Compliance is the concept which helps the organization in achieving its
objectives, which is accompanied with the responsibility to run the organization. It includes
number of processes and practices related to the different functions and departments of the
organization.
GRC might be implemented with the help of dedicated platform and other tools, but this is not
the necessary requirement. It is not important for the organization set-up a separate department
for the GRC, as there are number of organizations which establish teams for the purpose of
performing the functions related to the GRC (Lindros, 2017).
As stated in the definition, meaning of the GRC does not end with the three words that are
governance, risk, and compliance management, but it also includes the assurance and