Governance, risk, and compliance as a strategic advantage

IN BRIEF: * Governance, risk, and compliance (GRO) is shifting from back-office control to a strategic function that anticipates risks, protects value, and guides executive decisions ina volatile world.

- JOSEPH IAN M. CANLAS AND CHRISTIANE JOYMIEL C. SAY-MENDOZA

• Mature GRC programs feature strong leadership, fast and reliable information, clear ownership by the first line, and GRC leaders who challenge board and management decisions.

• While AI and new technologies improve risk detection, the real advantage comes from integrating risk insights across the organization to enable timely, practical governance for boards and management.

In November, board members, senior executives, chief audit executives, compliance officers, chief risk officers, and other professionals gathered at the SGV Knowledge Institute and SGV Consulting forum, “Navigating Enterprise Resilience through the Synergy of Governance, Risk, and Compliance.” It examined how governance, risk, and compliance (GRC) is being reshaped by business realities that are faster, more volatile and less forgiving than ever.

The first panel session, “GRC Integration: Aligning Governance, Risk, and Compliance with Business Strategy,” centered on how GRC can evolve froma defensive control function into a source of strategic clarity.

REDEFINING RISK

One theme dominated the discussion: the traditional definition of risk has become inadequate. Compliance risk, once the focal point of GRC programs, is now only one part of a broader risk universe that includes liquidity, market and operational exposures. Above these sit strategic and reputational risks, which panelists describe as one of the most consequential threats to long-term value.

Risk today, they argued, is best described as NAVI: nonlinear, accelerated, volatile and interconnected. A single

If you have a mature GRC, information flow is faster, reaching stakeholders on time to make smarter choices.