What is the essence or the central meaning of GRC?

What is the essence or the central meaning of GRC?
A . A connected and integrated approach that provides a pathway to Principled Performance by overcoming VUCA and disconnection
B . A system for monitoring and evaluating the performance of employees and teams
C . A set of guidelines and regulations for corporate governance and ethical conduct
D . A framework for managing financial risks and ensuring fiscal responsibility

View Answer

Answer: A

Explanation:

The essence of GRC (Governance, Risk, and Compliance) lies in creating a connected and integrated approach that enables organizations to achieve their goals through Principled Performance while managing uncertainty and fostering ethical operations.

Pathway to Principled Performance: GRC focuses on achieving a balance between objectives, risks, and compliance in a manner that aligns with ethical practices and organizational values.

Overcoming VUCA:

VUCA stands for Volatility, Uncertainty, Complexity, and Ambiguity, which are common challenges in modern organizational environments.

GRC integrates processes, communication, and systems to navigate these challenges effectively.

Avoiding Disconnection: Disconnection in governance, risk management, and compliance activities can lead to inefficiency, misaligned objectives, and increased vulnerability. GRC ensures seamless integration and collaboration across departments.

Reference: OCEG’s GRC Capability Model: Highlights how GRC helps achieve Principled Performance by harmonizing governance, risk, and compliance with organizational goals.

COSO and ISO 31000 Frameworks: Stress the importance of connected approaches for better risk management and performance outcomes.