Michael Rasmussen

In a recent discussion with a trusted colleague, Stefan, the Head of Risk and Governance at a major UK retail company, I was reminded of an essential lesson in governance, risk management, and compliance (GRC). This conversation, held one evening in Mayfair, focused not just on the tools and platforms available today, but on the true value of GRC, and why too many organizations miss the point. If you're looking for a deeper dive into the ROI-focused conversation that sparked this reflection, I recommend reading my article GRC Value: It’s More Than Just ROI, which explores the need to look beyond mere efficiency and towards strategic objectives.

In my previous article, The Integrity Imperative: Rethinking Compliance in an Era of Relentless Change, I explored the shifting nature of compliance in today’s fast-evolving regulatory environment. As we face a global landscape where laws change by the minute, organizations must rethink how they manage compliance—not just as a set of rules to follow, but as a core function rooted in the organization’s values and integrity. This article continues that conversation, diving deeper into how compliance must evolve from a static function to a dynamic, values-driven imperative.

In an era where risk is increasingly interconnected, multifaceted, and shifting in real time, organizations can no longer rely on static frameworks to manage governance, risk, and compliance (GRC). Traditional tools such as policies, controls, and spreadsheets, while valuable, no longer offer the adaptability required to navigate the complexities of today’s business landscape. Risk no longer exists in isolated silos; it cascades through supply chains, reverberates across organizational structures, and evolves in response to forces like regulatory change, geopolitical events, environmental disruptions, and rapid technological advancements. To thrive in this turbulent environment, organizations need GRC tools that are as dynamic and fluid as the risks they aim to mitigate.

As organizations continue to evolve in an increasingly interconnected world, it has become abundantly clear that the way we manage third-party relationships is at the heart of effective governance, risk management, and compliance (GRC). What was once seen as a linear process of managing external partnerships has now transformed into an intricate web of interconnected relationships that extend across global suppliers, contractors, service providers, and more. These third-party connections form what is known as the extended enterprise, and within this ecosystem lies some of the most pressing challenges organizations face today.

In my previous article, Rethinking ESG: Rediscovering the Meaning of Stewardship, I explored the idea that ESG, at its core, is not a political tool or a passing trend but rather a commitment to stewardship—taking responsibility for the resources we use, the communities we affect, and the systems that govern our organizations. As we continue to see ESG become a focal point for both praise and criticism, it's essential that we reframe the conversation around its true meaning. In this follow-up, I’ll dig deeper into the layers of stewardship embedded within ESG, examining its practical application across the three pillars—environmental, social, and governance—and the critical role GRC (Governance, Risk, and Compliance) plays in making this vision a reality.

Over the years, the term Integrated Risk Management (IRM) has increasingly become a focal point in discussions around governance, risk management, and compliance (GRC). While IRM gained limited traction in some circles, it’s important to remember that the concept of GRC is deeply rooted in a decades-long evolution, beginning with early work in risk management, compliance, and IT security. To understand where IRM fits, it's crucial to first understand how GRC came to be and why it continues to play a central role in managing risk and uncertainty to organizational objectives while ensuring integrity in organizations today.

In the increasingly interconnected world of modern business, organizations rely more than ever on third-party relationships. While these partnerships offer significant opportunities for growth and innovation, they also expose businesses to a range of risks that can threaten resilience and success. As geopolitical tensions and economic uncertainties continue to rise, it is essential for companies to reassess and strengthen their third-party governance, risk management, and compliance strategies. This article expands on the insights from my previous piece, Navigating the Storm: Strengthening Third-Party Governance and Risk Management in Your Extended Enterprise, offering a deeper look into how businesses can build robust, proactive frameworks to navigate these challenges and ensure sustained success across their extended enterprise.