C o p y r i g h t : T h a i p r o Curtain raiser Manufacturing Tod ayMarch 2011 46 ThGRC Smmit 2011 ims to hlp I di corports impl mtstrctrd pproch for i stittiolisi g fr mwork of govr- c, risk mg- mt d compli c. Mf ct ri g T ody prsts prvi w GRC Summit 2011 What was the biggest les- son that came out othe recent nancial crisis? The answer is known to us all since most corporates have learnt it the hard way. ‘Do not ignore governance and compliance in the euphoria oa boom and cross check your risk taking abili- ties beore taking the plunge in the sea ogrowth.’ But have organisations taken this learning seriously? And ithey have then what are they doing about it? Recent news headlines related to corporate raud and ne slaps by regulators show that in spite osignicant investment in compliance, risk management and selassessment, a Real-time risk management has direct impact on your organization’s reputation, valua tion and proftabilitysignicant gap exists between. This indi- cates that the unctions ointernal audit, risk management and compliance in most cases do not have a common assur- ance methodology or do not work on cre- ating and sharing inormation. “I expect transparency, clear communi- cation on actual acts and gures – ground realties and not something that you eel I need to hear. What I need is a true pic- ture to evaluate risks and prepare or anynegative impacts to the organisations.” The statement refects commonly reso- nating thoughts rom Boards Members, Independent Directors, CEOs to Manag- ing Directors to their employees and core team members, emphasising need or a true picture on emerging risk rom gover- nance, operations, sales, compliances. In short, organisations today need the right acts to evaluate any incident – present or potential which could impact the com- pany’s reputation, valuation and prot- ability. The discipline orisk convergence and the marketplace ogovernance, riskand compliance (GRC) have been in the news or quite some time to ll in this gap ointegrating governance risk and compliance. However adoption has not been easy. Audits, Finance, Compliance, Risk and Legal have their own unctioningstyles and process. Business line managers “Integrating GRC is no longer an option but an imperative today.” - Sunil K Kohli, IDAS, Joint Secretaryand Financial Adviser, NDMA and NDRF, Government oIndia, Ministry oHome Aairs
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