@Risk

Nearly two-thirds of business executives say converging their companies’ Governance, Risk and Compliance (GRC) initiatives is now a priority, driven by business complexity, the desire to improve risk management and a need to reduce costs, according to a recent global survey by KPMG International.

The survey results are available in KPMG’s new 44-page report, “The convergence challenge: Global survey into the integration of governance, risk and compliance,” where I learned that:

• Even though most (64 percent) of the 525 executives polled say that GRC convergence is a priority, only 11 percent report full convergence across geographies. Slightly more say they have integration across business units, oversight functions and strategies.

• Management is pushing for a change because they recognize the need to reduce risk exposure and cut costs. When asked to list why they implemented their GRC programs, survey respondents said the top reasons were to: simplify overall business complexity (44 percent), reduce organizational risk exposure (37 percent) and improve corporate performance (32 percent).

• In addition, respondents said other benefits of a GRC program included an ability to identify and manage risks more quickly (59 percent) and improved corporate performance (39 percent). One-quarter (26 percent) of the respondents said GRC convergence will reduce duplication and identify synergies, helping to achieve lower costs.

• Interestingly, the executives who participated in the poll said the single biggest obstacle to convergence is: resistance to change.

If you’re feeling that kind of resistance, I hope you’ll spend a few minutes with this report, which gives a comprehensive overview of the challenges faced –and the benefits gained –by companies designing and implementing coordinated GRC policies. (Several case studies are included.)

From the report:

GRC convergence is an idea whose time has come. It is not simply a technology tool; it is a way to rationalize risk management and controls, giving management the information they need to improve business performance and achieve compliance.
—Oliver Engels KPMG in the UK European Head of Governance, Risk & Compliance