In today’s fast-paced business world, Governance, Risk, and Compliance (GRC) is becoming more about the people behind the processes. Traditionally, GRC was seen as a policy-driven practice, focusing on rules, regulations, and procedures. However, companies are now shifting towards a human centric GRC approach, where organizational culture plays a key role in driving compliance, ethical behavior, and risk management.

What is Human Centric GRC?

Human Centric GRC integrates governance, risk management, and compliance into the daily culture of an organization. Instead of just focusing on policies and checks, this approach encourages employees at all levels to be actively involved in decision-making. It empowers them to take responsibility for managing risks and ensuring compliance, making these practices a part of the organization’s values.

Why Shift to a Human Centric GRC?

Evolving Risks

Traditional policies can’t keep up with today’s complex and ever-changing risks, such as cyber threats and regulatory changes. A culture of awareness allows employees to respond quickly and effectively.

Stronger Employee Engagement

A policy-heavy approach often leads to disengagement. In contrast, involving employees in the GRC process fosters accountability and encourages them to think ethically, which leads to better risk management.

Increased Regulatory Demands

With stricter regulations like GDPR, compliance must be ingrained in company culture. Organizations that prioritize a human-centric approach ensure all employees are aware of their role in maintaining compliance.

Key Principles of Human Centric GRC

Employee Empowerment

A human-centric GRC framework involves employees in risk and compliance activities. This ensures they understand the importance of these functions and empowers them to take action when needed.

Ethical Leadership

Leaders set the tone for a company’s culture. Ethical leadership ensures that GRC practices are embedded within the organization, creating an environment of transparency and integrity.

Continuous Learning

Training employees on new risks, regulations, and company policies is essential. With ongoing education, employees stay updated and prepared to handle emerging challenges.

Behavioral Alignment

GRC should align with employees’ behavior. This means creating an environment where employees actively make decisions that support the company’s values and risk management goals.

Strategic Decision-Making

In a human-centric GRC model, risk and compliance are factored into all strategic decisions, from product development to customer service. This ensures that every business decision aligns with compliance standards.

Benefits of Human Centric GRC

Improved Compliance

When employees are engaged in the GRC process, they are more likely to recognize and mitigate risks, ensuring better compliance.

Stronger Organizational Culture

A focus on ethics and compliance enhances trust within the organization, making employees feel responsible for the company’s success.

Better Decision-Making

A transparent culture where GRC is prioritized leads to more informed and ethical decision-making, reducing the chances of compliance violations.

Faster Risk Response

Employees who are empowered with GRC knowledge can respond to new risks faster, ensuring the organization can stay ahead of potential issues.

How to Implement Human Centric GRC

• Assess Company Culture: Evaluate the current state of your company’s GRC culture. Identify gaps and areas for improvement.
• Clear Vision: Define what a human-centric GRC looks like for your organization and align it with your company values.
• Ongoing Training: Regularly educate employees on GRC practices, new regulations, and ethical decision-making.
• Measure Success: Track the effectiveness of your human-centric GRC practices through feedback, audits, and performance reviews.

Conclusion

Human Centric GRC is a shift that focuses on people rather than just policies. By embedding GRC into the organizational culture, companies can ensure better risk management, stronger compliance, and improved decision-making. This approach not only enhances the company’s ability to manage risks but also creates a more engaged and responsible workforce. In an increasingly complex business environment, adopting a human centric approach to GRC is key to sustainable success. is an integrated GRC application powered by AI that can be a great help for all your GRC approaches.