Legal advice in Governance, Risk Management and Compliance
‘Governance’, ‘Risk Management’, and ‘Compliance’ (GRC) have become increasingly important concepts for internationally operating companies, especially in light of recent political developments and unlawful activities such as money laundering and sanctions violations. Management—including shareholders, investors, and policymakers—bears the responsibility to ensure adherence to these principles.
GRC initiatives are critical for ensuring compliance with legal standards and regulations, protecting your company from unsafe and unethical practices. Lexsu Consultancy can assist you in strengthening these areas.
Prof. Geoffrey Parsons Miller of New York University Law School clearly defines these concepts in the Aspen Casebook Series: The Law of Governance, Risk Management, and Compliance.
Governance
“Governance refers to the processes through which decisions regarding risk management and compliance are made within an organization” (Miller, 2017, p. 31).
The concept of governance refers to the approach and manner of management, the code of conduct, and oversight thereof. It is often complex, involving multiple layers of responsibility, various departments or offices, and relationships. The formal structure, as shown in an organizational chart, does not always correspond to the informal structure and the distribution of power or influence.
The ultimate goal of governance is to establish and make policies transparent that enable efficient and cohesive functioning within the organization. In other words, it ensures the relationships among different roles such as executives, shareholders, and other stakeholders.
Risk Management
“Risk management refers to the processes through which risks are identified, analyzed, incorporated into strategic planning, and either mitigated through risk control and reduction tactics or accepted as inherent to the activities the organization intends to undertake” (Miller, 2017, p. 32).
With risk management, you can map out risks in advance and respond quickly with your organization. This prevents financial or legal consequences and also provides opportunities to capitalize on potential profitable future prospects. The goal of risk management is not to eliminate risks but to raise awareness that current business activities carry various consequences affecting the success and mission of the organization.
Compliance
“Compliance refers to the processes by which an organization monitors its own behavior to ensure it adheres to applicable rules” (Miller, 2017, p. 32).
Within the GRC context, compliance has a specific meaning. It refers to the processes by which an organization ensures that its employees and other stakeholders comply with applicable norms and regulations. This can include legal requirements as well as adherence to internal codes of conduct, as explained by Prof. Geoffrey Parsons Miller.
GRC Services by Lexsu Consultancy
Lexsu Consultancy is pleased to assist you with the following GRC tasks:
- Evaluating, planning, and improving Governance, Risk Management, and Compliance
- Assessing the compliance program and processes as an independent party
- Providing management support
- Preparation and advice for regulatory inspections
- Internal audit functions
- Communication and process management with national and international authorities
- Providing compliance training regarding international sanctions for investments, collaborations, and activities
- Organizing education and seminars on compliance and risks
- International sanctions training (awareness of risks related to international sanctions)
- Organizing seminars related to compliance and international sanctions
- Providing appropriate software solutions with an IT specialist present for internal control regarding sanctions and regulations
- Establishing, installing, and managing governance, risk, and compliance software
- Preparing and conducting internal audits
- Open Source Intelligence (OSINT)
- Drafting and evaluating international contracts related to sanctions
- Creating process flow practices in the field of GRC
- Evaluating compliance functions, risk management, internal control, and internal audit; developing and improving new functions if necessary
- Detection, risk assessment, and evaluation regarding sanctions in international investments and collaborations
It is important to understand that governance, risk management, and compliance overlap and are interrelated, each containing legal elements. Consider new regulations in the international market, court rulings, or board decisions. Engaging a lawyer and/or legal consultancy is a valuable addition for GRC.
Lexsu Consultancy has a partnership with RegulusCORE in the field of GRC. We are an international team of experts, bankers, engineers, and lawyers in senior management positions, each specializing in different legal fields by country.
Sources:
Miller, G. P. (2017). Introduction. In The Law of Governance, Risk Management and Compliance (pp. 30-39). Wolters Kluwer, New York.
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