Governance, Risk, and Compliance: Analysis, Solutions, and Strategies

This report provides a comprehensive analysis of governance, risk, and compliance (GRC) within a company, addressing issues related to advertising approval procedures, deficiencies in the GRC framework, and challenges posed by regulatory demands. The report explores the importance of e...Read More

Governance,
Risk and
Compliance

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
TASK 1............................................................................................................................................3
TASK 2............................................................................................................................................5
TASK 3............................................................................................................................................7
GB’s operating base is inefficient.........................................................................................7
Importance of Investment in IT..............................................................................................8
Resources allocated to charitable activities too much however CSR – corporate social
responsibility is still essential.................................................................................................9
CONCLUSION .............................................................................................................................10
REFERNCES:................................................................................................................................12
Books and Journals:..............................................................................................................12

INTRODUCTION
Governance, Risk and Compliance is the unified combination or collection of abilities
which enable the company to accomplish their goals and objectives that address risk factors,
uncertainty, and act with unity (Al-Ruithe, Benkhelifa and Hameed, 2016). The capabilities of
the GRC include several things like, the work which is complete by the risk, legal, finance, IT,
HR and internal sources. This report is going to cover the problems which are face by the senior
member of the regulatory compliance which measure or monitor the procedure and activities of
the company. Also, this report going to analyse the issues that provide concern from the
perspective of risk and compliance. Also, This report going to caters the solution which help
them to resolve a problems in a very effective and amended manner and also going to explain the
needs and requirements of regulatory risk.
MAIN BODY
TASK 1
Governance, risk and compliance is the term which covering an companies formulation
these kinds of activities and practices. In other term governance, risk management and
compliance is the unified accumulation of the ability which change or alter the company
reliability in order to accomplish the goals and objectives.
Issues
As a senior member of the regulatory compliance, they analyse and monitor routine
activities of advertising approval procedure. After analysing and monitoring they identified
several issues and problems which is associated with advertising material. They identifies
problems in packaging of the material, colour which is choosing the by them as a template. The
another issue which is identified is deficiency in a comprehensive governance, risk and
compliance framework or structure (Al‐Hadi, Hasan and Habib, 2016). As when the organisation
is operating so rapidly and successfully then they become much capable to develop and improve
the flexible and comprehensive GRC structure. The other problems or challenge which are
facing by them is addressing the needs and demands from the political authority and regulatory
companies. These issue that are linked with advertising the product create impact on the
company towards their growth and efficiency to do the work very effectively. Under the
organisation all internal strategies or procedures and each modification in advertising material

create major effect because as they are not monitored by the regulatory compliance monitoring
department.
Deficiency in the GRC manual
There are few challenges which leads to deficiency in the GRC manual and which are
mentioned below:
A integrated vision is misleading to an company culture of non compliance (Allini,
Manes Rossi and Hussainey, 2016). As the companies and their each department has their own
or private data, stakeholders, technologies and their personal compliance in order to meet with
the requirements and needs of the company. There are several companies in which their lack of
integration and compliance is very ineffective so these procedures create impact on the company
and not caters integrated transparency.
The deficiency is lack of comprehensive GRC structure or framework. When the
organisation does not make any strategies and does not provide any appropriate formulation then
become much complicated for the organisation and for the team to develop a well crafted and
effective governance, risk and compliance structure. Every business or each department of the
company has their own goals and objectives in order to meet with the requirements of the clients.
Due to these kinds of issues it create negative impacts on the stakeholders, employees,
organisation and on the consumers. These deficiencies and issues affects the productivity and
profitability of the company and also their working capabilities. These problems are also
generate by the lack of talented employees among the organisation. Due to lack of training and
proper session will leads to several problems and issues in the company. Poor and adequate
training of the staff will give huge impact on the company towards their productivity and
profitability. There are few practises that help the company to improve these issues which are
facing by them in context of GRC.
Resolve training issues
There are several problems and issues which are evident with this scenario. Its is very
required by the GRC to monitor these issues and try to overcome these issues (Arlen and Kahan,
2017). They are required to provide effective and amended training so that they can improve the
skills and capabilities of the employees, so they can work and operate more effectively and
provide much positive outcomes for the company. There are several issues that help them to
resolve the issues which are facing by the company. Effective and skilled staff will help the

company to give better and amended efforts so that they can generate more effective and
powerful strategies. The GRC also required to monitor the strategies which made by their staff in
order to measure or evaluate their working capabilities and their effectiveness. Proper training
sessions and other activities which will help them to improve their productivity and motivation
level so that they can know about the which strategies is beneficial for them and which strategies
help them to select the best and appropriate tool in order to overcome the barrier. They are
required to identify the risk in order to assess the factors of uncertainty and risk. To overcome
the training issues, they are also required to develop a plan and identify that where and when
different several kinds of plans are made. If any kind of issues and problems is analysed or
monitored by the GRC then they should alter the application and the decision making strategies
which is very required for them to alter in order to get success and minimise the issues which are
facing by them (Elamer and Benyazid, 2018).
TASK 2
A compliance officer is a worker of the organisation which make them assure and ensure
the company is in the compliance with their legal needs and outside regulatory and also as the
internal policies and rules. There are several skills and roles which are required by the different
people in order to direct and operate the activities very smoothly and to get several opportunities
and success in the company.
A senior member of the compliance training team
Senior member officer has major responsibilities and to full fill and complete the
responsibilities, they required several skills and roles and which are mentioned below:
They should have accountability skills and knowledge in order to develop the compliance
of training in order to implement the best strategies (Geeraert, 2019). They are required to
manage or handle the responsibilities for the staff and for the individuals in order to assure
impelling roll-out of training and development. Compliance department supports the company to
identify and analyse the risk factors which are facing by the company. They should drive the
projects plans and strategies on order to assure transportation or production which are on track
and develop effective and appropriate plans and strategies which are required for the company.
They are required to should have 5-8 years experience in compliance in order to direct the

strategies and develop the plans. They should have excellent interpersonal and written skills with
extreme attention to detail so that they influence the other and get effective outcomes.
A junior member of the compliance staff
A junior member of the compliance staff has several roles and responsibilities which are
mentioned below:
They help and assist the internal risk management procedure and consent with internal
laws and regulations (Hamilton and Sauders, 2018). They also assist or support KPMG in
context of risk procedure and strategies and quality of the planning and procedures. They has
responsibilities to generate or develop variety of the knowledge and expertness for the clients
and for the markets in order to make them aware about their services and facilities which are
provided or offering by them. They help the compliance to get several opportunities for the
professional in order to enhance and develop the self confidence, learning skills from the more
experienced colleagues. They have duty or responsibilities to work or operate with management
and staff in order to analyse and handle the risk factors and uncertainty. They help or support the
company to make new effective policies and laws in order to develop and regulate the strategies.
The designated compliance officer
A designated officer assure that the main or chief compliance officers of the principle
management or princor financial services acquire reports of each herb of access person. In other
terms the designated compliance officer is any kind of individual which is appointed by the laws
and principles in order to acquire or carry daily or routine direction of the code of ethics. They
required an effective knowledge of the companies culture and goals in order to make the
business laws and strategies. There are several roles and responsibilities of the designated
compliance officer that is developing organisation abidance communication. Coordinating and
supporting the needed compliance which are needed for the workers. They develop and manage
the organisation compliance programmes. Compliance officers are much accountable or
prudent for the company in order to assure government modulate domestically as well as
globally.
So from the above mentioned roles and responsibilities it has been analysed that they
support the organisation in order to develop and made the laws and rules which help or support
the company to grow and develop in the industry (McShane, 2018). They also assessing and
make them company capable to manage the financial risk and developing the plan in order to

manage or handle the issues and barriers which are facing by the company. They also give
recommendation or advise to the leaders of the company to make modification in the actions that
will be more beneficial for the company. They provide or caters daily basis reports on the basis
of effectiveness of the organisation that measure or evaluate the business compliance.
Recommendation
 They are advised to identify the risk factors and identify the factor and way to avoid and
address the problems and uncertainty factors (O’Rourke, 2019).
 They are also recommended to caters effective and better training programmes so that
they can trained their staff in order to solve the barriers and issues which are facing by
the company.
 They are advised to monitor each and every activities in order to measure or evaluate the
strategies and functions. They should hire or recruit the talented and effective compliance member in order to
overcome the issues and obstacles and make the strategies more effective and powerful.
TASK 3
GB’s operating base is inefficient.
In order to operate any business it is required that a company should have efficient funds
in an organisation. Funds are important part of each and every business as all the operations
needs a proper funding. Good Business company is a family owned company operating as a
medium sized organisation in United Kingdom (Simanainen, 2019). The company has a goodwill
in the market for providing good services and better relations in the market. The company works
with a motive in which their customers comes first always. Financial crises all over the world
unfortunately has negative impact on Good business. It impacts on number of areas in the
organisation. All this faced by company force them to rethink about the business model and
strategic plan which is used in the organisation. This financial crises which has its impact on
whole world affects the profitability of GB and the company needs to struggle to maintain its
profitability and profit margin. This creates an inefficient base of operating funds in the
organisation. The company wants to maintain its honour which they get from their charitable
initiatives in the market which help the organisation earlier to put a positive impact on their

customers. It is very essential for the organisation to create a good operating base for the
organisation. For the purpose of the same the organisation needs to make significant savings
from various sources. There are several steps which a company can apply in order to have
savings in the organisation. The company is not paying any bonuses to their employees and even
pay low contractual bonuses when they complete their targets. It demotivated the employees of
the organisation which is shown in the sales and response of customers to the products of an
organisation. It can outsource several services like sales activities and many more at cheap prices
which helps them to save some labour cost. The company also have the opportunity to outsource
several non core activities of the organisation in order to save labour cost. The labours of the
organisation are demotivated and are not performing their duties in well and efficient manner.
They can lay off those employees who are not working in the organisation and save some funds
in the organisation (Viscelli, Hermanson and Beasley, 2017). The outsource of work also led to
provide them quality services with professional guidance. In the present scenario, the company
can save lots of operational funds from this strategy. The operational inefficiency is also caused
in the company because of employees which are not giving good performance in the organisation
which needs a proper training and development programmes to increase their efficiency and
motivation in the organisation. In order to have operational efficiency in the organisation, Good
Business(GB) needs to follow above given strategies which help them to survive in the market.
Importance of Investment in IT
IT refers to the information technology which is connected with the use of computers. IT
is very essential for any organisation in order to clearly manage their business organisation. With
the increase demand of digitalisation in the world, the organisations needs to keep themselves
updated regarding the same (Wilkin, Couchman, Sohal and Zutshi, 2016). Information
technology helps a business organisation to manage their business operations. It helps to manage
inventory, human resource, financial records and many more. It is essential for each and every
organisation to invest in the information technology. It is one time investment for any
organisation and further give a lots of data to the organisation. Once a company invest in
information technology it reduces the burden from the management which helps them in better
decision making for the profits of organisation. The main importance of the Information
technology in any business is further explained below:

Business communication: Information technology helps business organisation in establishing
communication between various stakeholders of the company. It increase efficiency in the
business communication by making it fast as well as effective. It helps to establish an effective
communication between various employees which are employed in an organisation. In GB, the
business organisation helps to establish a effective communication with the help of information
technology. This effective communication in an organisation helps them to establish a good as
well as effective communication between various employees which are working in an
organisation. This effective communication helps an organisation in development of business
operation and efficiency in productivity. It also helps to get various information which are
related to the competitors very frequently which further help to grow business of an organisation.
Optimize management: Optimization refers to the process of implementing new techniques in
order to make a business effective as well as efficient in several manners. Technology provides
various sources of resource management in an organisation. It also helps in optimize
management in order to modify the process of working in an organisation. In GB, in order to
maximise their efficiency, information technology helps them to introduce new and innovative
services to their customers in several ways. All this is need to be managed in an organisation. It
is called optimized managed which is managed with the help of information technology (Wilkin,
Couchman, Sohal and Zutshi, 2016).
Efficient Operations: As technology reduces the overburden of work from an individual in this
way it helps them to improve their efficiency in the organisation. Information technology became
an important part of everyday life which helps to detect the variations which are liable to the
negative results in the organisation. It can be observed by implementing this technology that
there is a great result in the organisation by having efficiency in the operations. It is required to
have good investment on the information technology which helps to bring efficiency in
operations of the organisation. It helps to reduce duplication of work, errors and omission and
helps to have a proper record of various operations in an organisation which results in efficient
operations.
Improved security: With the help of information technology, the organisations are able to keep
their important data safe and secure in their computer systems. There are several software which
are designed only to secure the data of an organisation. Technologies like encryption and
tokenisation are very important tool which helps in data loss prevention. It also helps in further

development of various gadgets which are required to be used in order to control the business
organisation remotely. In GB, if the organisation will also spend some of their funds in the
information technology, it will help them to have a proper security in the organisation.
Resources allocated to charitable activities too much however CSR – corporate social
responsibility is still essential
The GB organisation has committed to donate 2%of the annual turnover in the charity. When the
company is enjoying the profitable phase it is very beneficial for the organisation. The company
creates a good reputation of business organisation in the market which depicts its value in the
profitability of the organisation during that phase (Wilkin, Couchman, Sohal and Zutshi, 2016).
At this time of financial crises of the organisation in which the organisation has inefficient
operational base the company needs to reduce this contribution which has been provided in the
charity. The company needs fund in order to manage its operations. Already the company has not
enough funds to manage the operations in this case the company can either reduce the amount of
this charity initiative or can cancel this. The company also has chance to fix the turnover above
which the company will offer charity to them. Corporate Social Responsibility refers to the
responsibility of an organisation towards the society in which that organisation is operating. It is
a business model which is regulated by a company itself. It helps the company to make
themselves accountable towards the public and their stakeholders. There are several ways in
which a company can engage in Corporate social responsibility. The step of charity by GB is
also a good step towards Corporate social responsibility. In order to stable its condition and run a
business in future the company needs to have funds in the organisation. In order to manage the
operations and save funds from the business it it essential for GB to understand that the funds
which are invested in the charity needs to be revised by them. For a small company like GB it is
very difficult to donate 2% of their profits which are not even stable to the charity. It has been
recommended that the company the company has three or four choices for this perspective.
Either the company can quit their commitment of providing these funds or the company can
revise the amount either they can provide a fix amount or less percentage for the same. The
company wants to preserve their honour they get from providing charity as earlier. In order to
maintain this the company can opt an option to set a limit up to which the company will
contribute to the charity (Wilkin, Couchman, Sohal and Zutshi, 2016). Taking an example in
this case the company can set a limit of 200 million of annual turnover up to which it will not

offer any charity and beyond this turnover company will offer 1 million in the charity. It will not
only helps the company in saving funds for operations but also helps them in marketing of their
products and services.
CONCLUSION
From all above discussion it has been concluded that an organisation can put themselves
in a risk if they do not follow compliances which are applicable on them. In this report it is
explained with help of a case study that how a company attracts risk in the management of
business if they do not follow several compliances. Being the senior member of Regulatory
Compliance Monitoring department, it is required to make all the changes in the advertising
material. In order to follow compliance of GRC in the organisation all the amendments which are
required to be made in that material. In the next part it has been concluded that in order to
manage business of GB the organisation needs to improve various operations in the organisation.

REFERNCES:
Books and Journals:
Al-Ruithe, M., Benkhelifa, E. and Hameed, K., 2016. A conceptual framework for designing
data governance for cloud computing. Procedia Computer Science, 94, pp.160-167.
Al‐Hadi, A., Hasan, M.M. and Habib, A., 2016. Risk committee, firm life cycle, and market risk
disclosures. Corporate Governance: An International Review, 24(2), pp.145-170.
Allini, A., Manes Rossi, F. and Hussainey, K., 2016. The board's role in risk disclosure: an
exploratory study of Italian listed state-owned enterprises. Public Money &
Management, 36(2), pp.113-120.
Arlen, J. and Kahan, M., 2017. Corporate governance regulation through nonprosecution. The
University of Chicago Law Review, pp.323-387.
Bindley, P., 2019. Joining the dots: how to approach compliance and data governance. Network
Security, 2019(2), pp.14-16.
Elamer, A.A. and Benyazid, I., 2018. The impact of risk committee on financial performance of
UK financial institutions. International Journal of Accounting and Finance, 8(2),
pp.161-180.
Geeraert, A., 2019. The limits and opportunities of self-regulation: Achieving international sport
federations’ compliance with good governance standards. European Sport Management
Quarterly, 19(4), pp.520-538.
Hamilton, J. and Sauders, K.J., 2018. How Systematic Compliance Practices Can Address
Regulatory and Risk Issues in Healthcare. Frontiers of health services
management, 34(4), pp.26-31.
McShane, M., 2018. Enterprise risk management: history and a design science proposal. The
Journal of Risk Finance.
O’Rourke, M., 2019. Artificial intelligence and other advanced tools may help modernize
compliance departments. CIRCULATION, 212, pp.655-6033.
Simanainen, M., 2019. Sustainable investing–Moving from compliance and risk management to
creating societal impact.
Viscelli, T.R., Hermanson, D.R. and Beasley, M.S., 2017. The integration of ERM and strategy:
Implications for corporate governance. Accounting Horizons, 31(2), pp.69-82.
Wilkin, C.L., Couchman, P.K., Sohal, A. and Zutshi, A., 2016. Exploring differences between
smaller and large organizations' corporate governance of information
technology. International Journal of Accounting Information Systems, 22, pp.6-25.