Introduction

In today’s complex business environment, organizations face numerous challenges in managing governance, risk, and compliance (GRC). Effective GRC programs are essential to ensure that companies operate within the bounds of regulatory requirements, manage risk, and maintain stakeholder trust. A critical component of a successful GRC program is the team responsible for its implementation and oversight. In this blog post, we will explore the importance of team composition in building effective GRC programs.

Understanding the Importance of Team Composition in GRC Programs

A well-structured team is vital to the success of any GRC program. According to a survey by the Society of Corporate Compliance and Ethics, 71% of organizations consider their compliance team to be effective or very effective, while 21% consider their team to be somewhat effective (1). However, the effectiveness of a GRC team depends on various factors, including the skills, expertise, and personality of its members.

In a GRC program, team members with diverse skills and expertise work together to identify, assess, and mitigate risks, ensure compliance with regulations, and maintain governance standards. A GRC team typically consists of professionals from various departments, including audit, compliance, risk management, and internal control. Each member brings their unique perspective and expertise to the table, enabling the team to make informed decisions and take effective actions.

Key Roles and Responsibilities in a GRC Team

A well-structured GRC team should include the following key roles and responsibilities:

1. GRC Program Manager

The GRC program manager is responsible for overseeing the entire GRC program, ensuring that it is aligned with the organization’s overall strategy and objectives. This role involves developing and implementing GRC policies, procedures, and standards, as well as coordinating the activities of the GRC team.

2. Risk Manager

The risk manager is responsible for identifying, assessing, and mitigating risks across the organization. This role involves developing and implementing risk management frameworks, conducting risk assessments, and providing risk-related advice to the GRC team and other stakeholders.

3. Compliance Officer

The compliance officer is responsible for ensuring that the organization complies with relevant laws, regulations, and industry standards. This role involves developing and implementing compliance policies and procedures, conducting compliance training, and monitoring compliance with regulatory requirements.

4. Internal Auditor

The internal auditor is responsible for conducting audits to ensure that the organization’s internal controls are operating effectively. This role involves identifying control gaps, evaluating the effectiveness of internal controls, and providing recommendations for improvement.

Skills and Expertise Required for a GRC Team

A GRC team requires a diverse set of skills and expertise to effectively manage governance, risk, and compliance. Some of the key skills and expertise required include:

  • Risk management and internal control expertise
  • Compliance knowledge and regulatory expertise
  • Auditing and assurance skills
  • Project management and coordination skills
  • Communication and stakeholder engagement skills
  • Analytical and problem-solving skills
  • IT and technical expertise

According to a survey by the Institute of Internal Auditors, the top skills required for GRC professionals are analytical and problem-solving skills (81%), followed by communication and stakeholder engagement skills (74%) (2).

Best Practices for Building an Effective GRC Team

Building an effective GRC team requires careful planning, consideration of the key roles and responsibilities, and a focus on the skills and expertise required. Some best practices for building an effective GRC team include:

  • Clearly define the GRC team’s objectives and scope
  • Identify the key roles and responsibilities
  • Recruit members with diverse skills and expertise
  • Provide ongoing training and development opportunities
  • Foster a culture of collaboration and open communication
  • Establish clear workflows and processes

By following these best practices, organizations can build a strong and effective GRC team that is well-equipped to manage governance, risk, and compliance.

Conclusion

In conclusion, a well-structured team is critical to the success of any GRC program. Effective GRC teams require a diverse set of skills and expertise, including risk management and internal control expertise, compliance knowledge and regulatory expertise, auditing and assurance skills, and communication and stakeholder engagement skills. By following best practices for building an effective GRC team, organizations can ensure that their GRC programs are effective in managing governance, risk, and compliance.

We would love to hear from you! What are your experiences in building an effective GRC team? What skills and expertise do you consider essential for a GRC team? Share your thoughts in the comments below.

References:

(1) Society of Corporate Compliance and Ethics. (2020). 2020 Compliance and Ethics Survey.

(2) Institute of Internal Auditors. (2019). The Evolving Role of Internal Audit: A Study of the Skills and Competencies Needed to Address Emerging Risks.