Governance, risk, and compliance is a hot topic amongst organizations of all sizes. GRC principles are essential in developing sustainable operations in the uncertainty of the future. Each of these is a separate pillar of an organizational structure, but each relies on the other to maintain the integrity of the organization. Governance seeks to maintain strong, responsible, and diligent leadership. Risk management is the identification, preparedness, and mitigation of threatening uncertainties. And compliance ensures that the organization upholds the law and operates with integrity. Each of these helps build the foundation for the organization to move forward in a responsible and sustainable manner.
In today’s modern world, it is becoming increasingly necessary for even non-profit organizations to stay on top of constant change and the ever-growing list of demanding regulations. Our current modern environment has grown into an increasingly complex and interconnected web of third-party relationships, distributed operations, global supply chains, compliance requirements etc. This puts a unique and intense pressure on compliance professionals within non-profit organizations world-wide as they must take responsibility to build controls and procedures that establish an authentically ethical organization that acts with integrity in such a dynamic environment. As non-profit organizations are exempt from federal and state taxes and have unique access to certain types of public funding, they consequently hold themselves accountable to the highest standards of ethical and compliance practices.
Having a board-level compliance committee is now a standard in most organizations. Based on the regulation framework, processes, and internal structure, the role of these entities differs.