BULETIN TEKSTIL.COM/Jakarta – Before discussing about GRC in corporations, let’s first get to know the various Types of Corporate Culture – Corporations:
- Clan Culture: Bonds of togetherness like a family, positive relationships in the work environment, open communication, shared commitment and collaboration;
- Adhocracy Culture: The most creative cultures in each organization are Risk Takers and Innovators. There is a strong commitment to creating new standards, maintaining continuous improvement, constantly looking for creative solutions, innovation. Visionary, entrepreneurial spirit, individual with initiative, and independent.
- Market Culture: The end result always comes first, aggressive competition, assertive leader and high work demands; Outstanding employees are highly valued and receive proper recognition; “Result Oriented Organization”
- Hierarchical Culture: The main one is ‘Structure and Control’. The company has a clear and formal definition with a strict set of Protocols, Rules, Regulations and Policies to ensure regularity. Strengths: Stability of control and work processes and certainty (predictability).
Governance, Risk and Compliance (GRC) is a structured way to align IT with business objectives while managing risk and meeting all industry and government regulations.
The GRC includes tools and processes to integrate organizational governance and risk management with innovation and technology adoption. Companies use GRC to achieve reliable organizational goals, eliminate uncertainty, and meet compliance requirements.
Current State of Corporate Culture
- FACT OR REALITY:
- There are still many corporations that implement GRC – separately or in silos, or in stages.
- The information obtained is partially incomplete and comprehensive. Fragmented IT -Digital 1
- Limited Organizational Understanding of a Principled Performance, especially the Highest Leaders in the Organization – Corporations – TONE AT THE TOP
- Ethical Behavior – Integrity is not yet an inherent part. In the organization
- The GRC is not yet integrated into the corporate culture.
Why is GRC so Important?
CURRENT FACT OR REALITY
- There are still many corporations that implement GRC – separately or in stages, for example starting from Risk Management – Risk Management, Compliance – Compliance and Governance – Governance. There is an overlap or duplication in its application so that it has an impact on increasing costs and the lack of harmony in the activities of organizations – corporations.
- The partially obtained information is incomplete and comprehensive, officials or people in the ranks of the organization, including the leadership, receive information that is inaccurate and overdue and even absolute is no longer useful; IT Utilization – Digital is Partial – Not fully integrated.
- Limitations of Organizational Understanding of a Principled Performance, especially the highest leadership in the Organization – Corporations, so that the message conveyed to the lower ranks about the importance of working in an integrated manner is not strong enough – lack of “Tone at the Top” in the form of leadership commitments: directions, orders, instructions and examples. In most corporations, the responsibility for implementing GRC in an integrated manner is left to the ranks under the Board of Directors, for example to the Corporate Secretary or Division Head.
- The Ethical Foundation and Behavior of Integrity have not yet fully become an inherent and integral part of the individual and the Staff – Organizational Unit – Corporate. = Fraud and Corruption are still common.
- The GRC has not yet been entrenched in the Corporation, therefore a planned and systematic effort is needed through “Training”. The purpose of the training is to make the Integrated GRC important, understood and implemented in an orderly, sustainable manner and become a joint commitment of all levels of the organization. They feel bound and obligated to do it.
Building a GRC Culture
To build a GRC culture, the main thing is to change the mindset.
The OLD Way of Thinking:
- Heavy Assets (Land, Buildings, Machinery)
- Resource Control
- Tangibility (Land, Building, etc.)
- Value Chain
- Internal Efficiency
- Internal Governance (Control)
- Industry Analysis
- Industry Analysis (with clear boundaries)
NEW Way of Thinking
- Asset Light (Technology)
- Resource Orchestration
- Intangibility (Network Effect)
- External Efficiency (Interaction)
- External Governance (Rating, Review)
- Arena Analysis (Borderless Sector)
- Arena Analysis (Borderless)
After changing the mindset, set the goal, namely Building a Culture to Be More Harmonious. Responsive. Agile, Tough, Efficient Principled performance
What must be done is GOOD GOVERNANCE PRINCIPLES, COMPLIANCE and MANAGED RISK.
The principles of good governance include Transparency Accountability, Responsibility, and Independence Fairness. Compliance includes Tone at the Top beyond Rule and regulations; Mandatory and Voluntary; Ethical Driven Vs, Regulated Driven.
Meanwhile, Mapped Risks are risks that are well mapped and comprehensive, including: Operations (Process, Social, and Environmental), Finance, Policy, Politics and others and periodic reviews.
How to build a culture to be more harmonious. Responsive. Agile, Tough, Efficient?
TRAINING AND GUIDANCE
In House or Collaborative, for a complete understanding of Integrated Governance, Risk Management and Compliance Must be measured regularly
CERTIFICATIONS Knowledge Management Competency Utilization of IT – Digital – New Era “ Information Quality “
The BENEFITS of implementing GRC is that the corporation becomes agile and able to adapt quickly and accurately to anticipate changes in the business environment as well as the achievement of Objectives, Short-term and Long-term targets and continue to grow and create Shared Value.
Provide assurance that the Company is run ethically, and with integrity to achieve the best set goals. Growing in a healthy manner and providing assurance for Share Holders and other Stakeholders that the implementation of the Duties of the Board of Directors and Commissioners is solely for the best interest of the Corporation.
Resilient and Responsive Organization and grow healthy and sustainable. Ethical behavior is the basis of all structures, systems, organizational structures, and human resources.
Companies that have practiced the GRC Culture are Blue Bird: Collaboration with Go-Jek for application-based transportation – the digital platform is the goal; to anticipate the Risk – Business Revenue decline, because Passengers switch to transportation types that are easy in service availability: Go-Jek and Go-Car and to capitalize on the “Trust” that has been built as a reliable transportation; Employee Empowerment Program that retires as a form of ethical action.
(Red B-Teks/ Ben Da Haan)