Highly confident is how one third of CEOs running financial services companies feel about the effectiveness with which their companies manage governance, risk and compliance (GRC), according to PricewaterhouseCoopers' 8th Annual Global CEO Survey.
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At the same time, a majority agree that both they and their peers have some distance to go in fully developing the elements of effective GRC, in reaping its benefits and in addressing stakeholder concerns.
What sets these "GRC-confident" executives apart from their peers in financial services companies and what common traits do they share? The global survey suggests that GRC confidence comes from a distinctive mindset and thorough follow-on.
1. Conviction that effective GRC yields specific positive business impacts
GRC-confident executives are 65% more likely, on average, to believe in the positive power of better governance, risk and compliance. They see it as having a major impact on everything from legal liabilities to operational excellence.
2. Discipline and thoroughness in development of GRC capabilities
It takes discipline and thoroughness to fully develop GRC capabilities. GRC-confident executives are twice as likely, on average, to rate themselves as having fully developed elements of GRC across their organization.
3. Access to the right information at the right time to improve decision-making
Reliable information increases confidence and improves decision-making. GRC-confident executives are decidedly more assured about the accuracy, timeliness, completeness and consistency of GRC information they receive.
4. Active board oversight
Active board oversight, now mandated, is built on reliable information. Two-thirds of GRC-confident executives say their boards want to be informed in detail on GRC matters.
5. Responsive stakeholder management
Transparency is increasingly the hallmark of effective response to stakeholder concerns. GRC-confident executives are 85% more likely, on average, to achieve a level of transparency that translates to greater responsiveness to stakeholders across the board.
How effectively do you feel that you address the following stakeholders' concerns?
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