Companies today face a complex landscape of governance, risk and compliance (GRC) challenges driven by evolving regulations, technological advancements and increasing stakeholder expectations. Governance risks often stem from unclear leadership structures, inadequate oversight and poor decision-making processes, which can lead to ethical lapses and strategic missteps. Risk management challenges arise from both internal and external threats, such as cyberattacks, supply chain disruptions and market volatility, all of which can impact business continuity and reputation. Compliance risks are heightened by the frequent changes in local and global regulations, making it difficult for organizations to keep pace and ensure adherence to laws such as data privacy, anti-corruption and industry-specific standards.

Addressing these risks requires a proactive and integrated approach. Companies should establish robust governance frameworks that clearly define roles, responsibilities and accountability at every level of the organization. Effective risk management involves identifying, assessing and prioritizing potential threats, followed by the implementation of controls and mitigation strategies tailored to the organization's unique risk profile. Compliance efforts must be ongoing, with regular monitoring of regulatory changes, employee training, and the adoption of technologies that automate compliance processes to minimize human error and ensure timely reporting.

Ultimately, fostering a culture of transparency, ethical conduct and continuous improvement is key to overcoming GRC challenges. Leadership must set the tone from the top, encouraging open communication and the reporting of potential issues without fear of reprisal. By integrating governance, risk and compliance into the company’s strategic objectives and daily operations, organizations can not only reduce exposure to costly risks but also build trust with stakeholders and position themselves for sustainable growth in an increasingly complex business environment.

1. IT Governance Capability Maturity Model (CMM)

This capability maturity model can be used to measure the maturity of an organization’s IT governance and to assist its progress from the initial/ad-hoc state toward the optimized state. The capability maturity model describes a maturity curve on these capability levels: initial, repeatable, defined, managed and optimized. In this sample, an optimized organization’s IT proactively presents solutions to the business.

2. Corporate Governance Compliance Questionnaire

The attached Corporate Governance Compliance Questionnaire was designed to help organizations evaluate and enhance corporate governance practices. The two samples included in this questionnaire are structured to address critical areas of corporate governance, including compliance with Sarbanes-Oxley Act requirements, strategies for balancing operational demands with governance obligations, and assessment of board performance. They also include provisions for understanding unique compliance risks inherent in the organization's business model. These samples aid in assessing both board members' and management's understanding and effective execution of their roles. By using this tool, organizations can anticipate a more streamlined auditing process and a deeper insight into the company's commitment to ethical behavior and quality reporting.

3. IT Governance Audit Work Program

Organizations looking to conduct an IT governance audit can use the best-practice steps in this work program sample. Sample steps include determining if an IT steering committee or similar governing body is in place to support the IT strategy committee’s higher-level deliberations; evaluating the methods used to establish cost transparency for IT projects and IT services; determining if allocation formulae are used to ensure that the costs associated with common IT systems and common IT infrastructure are fairly shared amongst the departments throughout the organization; and determining if comprehensive business cases are defined for proposed IT investments that include clearly articulated business benefits to enable the expected return to be calculated.

4. Auditing Corporate Governance Guide

‘‘Governance’’ is defined as a set of policies, procedures, processes, systems, people and relationships that govern the enterprise to direct and control the actions of issuers. This includes the relationships between an issuer’s shareholders, board of directors, senior management, internal audit and external audit, and the mechanisms for holding issuers and the board and executive officers accountable. Corporate governance has traditionally been viewed as what the board of directors does when providing oversight on strategy, policy, performance and transparency matters. This guide can be used by auditors to assess and understand the four pillars of an organization’s governance framework.

5. Ethics and Compliance Hotline Leading Practices

Assuring compliance within policies, procedures, and legal and regulatory requirements is an important activity that supports the function and reputation of successful organizations. Due to various governance regimes, including the U.S. Federal Sentencing Guidelines, a compliance and ethics program has become commonplace when supporting the improvement of governance practices within an organization. This tool features a number of leading practices for managing an ethics and compliance hotline, including the hotline provides a web-based reporting capability as well as a toll-free telephone-based service.

6. Global Compliance Questionnaire

This questionnaire can serve as the starting point for assessing an organization's compliance in a variety of areas, including corporate governance, quality systems, anti-fraud programs and business ethics. Sample questions include: Are your company’s governance compliance efforts organized to move ahead of the reform process, or are you constantly concerned with keeping up? Is the relationship with the CEO and with management working effectively in an environment of openness and trust? Do the quality personnel have the authority to stop production if quality requirements are not being met? Is the anti-fraud program reinforced regularly by the tone from the top?

7. Compliance Overview Questionnaire

This Compliance Overview Questionnaire is a critical tool designed for organizations to carry out a meticulous self-assessment of their adherence to various legal standards and best practices in the workplace. The 27 samples included in the attached document cover an extensive range of compliance areas, including federal laws, employee benefits, health and safety regulations, and anti-discrimination acts. This questionnaire is structured to help auditors systematically review company policies and procedures, ensuring they align with regulations like FMLA, ADA, ADEA, the Civil Rights Act of 1991, COBRA, HIPAA, and many others.

8. Risk Oversight and Risk Management Questionnaire

The purpose of this questionnaire is to help boards and management think about how they can develop a deeper knowledge of the risk oversight and risk management processes, understanding both the current state and desired future state. Sample questions include: Is the board satisfied with the risk reports it receives from management and has it considered how those reports can be improved to meet its needs? Does the board periodically evaluate the effectiveness of its risk oversight process to ascertain whether any enhancements are needed? Does the board understand, and appropriately challenge, the organization’s strategy and its underlying assumptions and inherent risks?

9. Risk Management Policy

Our sample Risk Management Policy outlines a structured framework for managing risks across an organization aiming to enhance risk awareness, manage risks effectively, and maintain transparent risk profiles within business units. It details the processes and methodologies for identifying, assessing, responding to, and monitoring risks, ensuring that they align with the company's strategic objectives and regulatory requirements. This policy is applicable at all levels of the organization, including group, divisional, and business unit levels, and covers various risk categories such as strategic, reputation, credit and compliance risks. Does the board periodically evaluate the effectiveness of its risk oversight process to ascertain whether any enhancements are needed? Does the board understand, and appropriately challenge, the organization’s strategy and its underlying assumptions and inherent risks?

10. Risk Management Concepts Guide

In this tool, we’ve compiled guidelines that auditors can use to better understand and improve the organization’s risk management processes. This guide underscores the importance of an integrated risk management (ERM) approach that encompasses all strategic, operational, compliance and reporting risks. It also outlines key components such as developing a risk management policy, integrating risk management into existing processes, clearly defining roles and responsibilities, and maintaining focused executive and board reporting. It also emphasizes building and driving a risk-aware culture, assigning clear accountability, and using consistent risk language and evaluation scales. The document details various risk management techniques such as avoiding, accepting, reducing and transferring risks, along with specific actions like divesting, prohibiting, self-insuring and outsourcing.