Both governance, risk and compliance and enterprise risk management (ERM) are aimed at ensuring all risks?

To illustrate the difference between governance, risk management and compliance the terms have been broken down into their core purposes.

Governance

1. The overall management approach through which senior executives ethically direct and control an organisation.
2. Integrates management information reporting with management control structures.
3. Governance ensures that important information reaches the proper organisational level and it is complete, correct and timely thus allowing for management decision-making.
4. Instills control mechanisms to make sure that strategies, directions and instructions from management are carried out systematically and effectively.

Risk management

1. Processes through which management identifies, analyses and where necessary responds to risks that may derail the organisation’s business goals.
2. Response to risks depends on their perceived gravity and involves controlling, avoiding, accepting or transferring the risk to a third-party.
3. Organisations manage their exposure to a range of risks (e.g. technology risk, financial risk, information security risk etc.).
4. Currently it is arguable that legal and regulatory compliance risks are the most important for organisations.

Compliance

1. Conforming to stated requirements.
2. Compliance is achieved through processes that identify certain requirements in laws, regulations, contracts, strategies and policies.
3. Assessments determine the extent of compliance and take account of the potential costs of non-compliance verses the projected cost incurred to achieve compliance.
4. Prioritize, fund and start any corrective actions deemed necessary.

Governance is about the legal structure of the company, who is in charge and how they are held accountable.

Risk and ERM are about the risks facing the business, which includes things like the warehouse burning down or the servers being hacked.

 

Compliance is about ensuring that the business as a whole and the individual employees comply with relevant laws and regulations. 

■ GRC is tactical or operational (lower level); whereas ERM is strategic (higher level).

■ GRC also promotes positives such as ethical behavior as opposed to only managing risk.

■ [The difference is the] parties responsible for execution and oversight.

■ GRC is more encompassing as it includes governance and compliance

 

■ ERM is periodic; GRC is continuous.

 

■ GRC creates the control environment and its activities, while ERM complements GRC with respect to best performance.

■ ERM is detailed; GRC is overarching and less detailed. GRC can happen unintentionally while ERM is deliberate.

■ You can cover ERM through a fully functional GRC, but you couldn’t cover GRC with a fully functional ERM.

I fully agree with the answers been added by EXPERTS..................Thanks.

ERM provides a methodology for managing the entire range of risks, and is the measurement and qualification of risk, as well as the establishment of individual risk ownership.

GRC provides a larger, over arching framework and philosophy for communicating around governance and compliance risks by leveraging technology for reporting mechanisms such as dashboards. This technology centralizes and organizes things such as policies, procedures, documentation requirements, and risk assessments. In essence, GRC encompasses ERM.

Yes particularly the difference between Safety and Security. Risk can be best mitigated when you knew the principles of the two field. Sometimes the procedure created is safe for the employees but not secured for the lives and properties of the company and vis-a-vis. Example is a closed van being allowed to travel outside the company with open doors. It is secured as the security personnel can openly see inside the truck and easily cehck it. But the process was unsafe.

Risk management is the way in which business risks are reduced and reduced and potential causes and control methods are identified. It plays an important role in the inspection process. Injuries occurring within an institution lead to the development of a new policy so that the institution can know the reasons that led to the injuries. Hence, risk assessment has a fundamental role.