Thursday, January 18, 2018

Real Time Search

Looking to Recovery, Executives See GRC as Key Priority, KPMG International Study Finds

Events & Trends - What's Hot

NEW YORK – Nearly two-thirds of executives globally say they are focused on converging their company's many disparate governance, risk, and compliance (GRC) initiatives, to improve risk management and reduce costs, according to a global survey by KPMG International.

Some 64 percent of 542 executives called the convergence of GRC projects a priority, driven in part by the complexity of business.

"Companies need to rationalize the many monitoring activities that have emerged in response to rising government regulations. It's too expensive to continue to manage those functions in silos," said Michael J. Nolan, global leader for risk and compliance at KPMG International, the global network of professional firms providing audit, tax, and advisory services.

"Typical responses to new regulations have been to add layer after layer of compliance processes, resulting in bloated corporate bureaucracy that can make an organization sluggish," said John M. Farrell, the GRC service network leader for KPMG LLP, the U.S. member firm of KPMG International. "The answer for some leading companies is implementation of a converged GRC program as a strategic and practical approach that promotes flexibility in a risk-aware culture."

The KPMG survey respondents, asked to list why they implemented their GRC program, 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.

"Many executives embarking on a GRC program are encountering obstacles, due primarily to the potential cultural change within the organization. However, they still believe it is necessary to improve management and oversight of the organization, identify new risks, comply with new government regulations, and provide a broad dashboard of operational information," said Farrell. "With proper implementation, GRC can reduce corporate complexity and give management the information it needs to make rapid decisions in a fast-paced marketplace.

"Initially, leaders may need to step back from their day-to-day efforts and take a fresh look at their GRC realities and needs," Farrell said. "They should aim to improve overall GRC effectiveness – considering their unique needs, like compliance, for instance while working to converge GRC components with reason and efficiency in mind, and all in tandem."

GRC White Paper

In addition to the KPMG global survey, KPMG LLP, the U.S. firm, has released a white paper: Survival of the Most Informed: GRC Comes of Age How to Envision, Strategize, and Lead to Achieve Enterprise Resilience, to provide guidance for organizations considering a GRC program. The white paper explores how a GRC program can support board and management needs, such as providing them with key converged risk information to better understand the impact of opportunities on strategic decisions or proposed changes in the organization.

"With an effective GRC plan, organizations can become more nimble because their leaders are able to react faster to marketplace conditions and strategic opportunities, armed with more timely business intelligence and insights. A good GRC program, therefore, fosters survival of the most informed," Farrell said.

To create an effective GRC program, Farrell said organizations need a simple, yet disciplined approach a foundation of guiding principles based on leadership's GRC tenets accountability, responsibility, discipline, transparency, independence, integrity, and communication.

About KPMG International

KPMG is a global network of professional firms providing audit, tax, and advisory services. We operate in 146 countries and have 140,000 people working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. Each KPMG firm is a legally distinct and separate entity and describes itself as such.

About KPMG LLP

KPMG LLP, the audit, tax and advisory firm (www.us.kpmg.com), is the U.S. member firm of KPMG International Cooperative ("KPMG International.") KPMG International's member firms have 140,000 professionals, including more than 7,900 partners, in 146 countries.

Eds: For a copy of the KPMG International survey, which was conducted in late 2009 by the Economist Intelligence Unit, click here (www.kpmg.com/Global/en/IssuesAndInsights/ArticlesPublications/Pages/The-convergence-challenge-Global-survey.aspx); for a copy of the KPMG LLP white paper, click here (www.us.kpmg.com/services/content.asp?l1id=10&l2id=0&cid=3372).

Contact: Bob Wade/Dan Ginsburg
(201) 307-7482/8270
This e-mail address is being protected from spambots. You need JavaScript enabled to view it /
This e-mail address is being protected from spambots. You need JavaScript enabled to view it

Source: KPMG LLP

CONTACT: Bob Wade, (201) 307-7482, This e-mail address is being protected from spambots. You need JavaScript enabled to view it ; or Dan
Ginsburg, (201) 307-8270,
This e-mail address is being protected from spambots. You need JavaScript enabled to view it

Web site: www.us.kpmg.com/


Market Watch


Ads on: Special HTML

Login Form