In the realm of business management, GPRC has emerged as a functional acronym, representing Governance, Performance, Risk, and Compliance. Owe Lie-Bjelland, the Director of GPRC Program Management at Corporater, coined and introduced this concept in a company blog, and this has since been emphasized in his writings on the Performance – GRC equilibrium. The broader management community has also recognized the importance of GPRC, as evident in events like the G[P]RC Summit 2023.
In today’s rapidly evolving business landscape, organizations need to effectively manage their governance, performance, risk, and compliance (GPRC) to operate efficiently as a connected enterprise – that is interconnected and aligned across all its business channels and functions. Industry experts, at the first edition of the G[P]RC Summit, highlighted that GPRC is not just another buzzword but a comprehensive framework that plays a critical role in ensuring the success and longevity of a company. In this blog, we will delve deeper into the significance of GPRC and explore how it has evolved over time, based on the keynotes at the G[P]RC Summit.
Unleashing GPRC: A Holistic Framework for Business Governance and Performance
“GPRC is a framework for governing, managing, and assuring your company’s performance, risk, and compliance.” – Tor Inge Vasshus
Tor Inge Vasshus defines GPRC as a powerful framework encompassing various facets of business operations. It provides organizations with a structured approach to improve their performance, address risks, and ensure compliance with regulatory requirements. GPRC is built on a common business management platform where all the management disciplines share the same information, shared goals, vision, processes, and terminology, enabling the right people to get the right information at the right time. By implementing GPRC, companies can enhance their decision-making processes, streamline operations, and foster a culture of accountability and transparency.
A Paradigm Shift: GPRC and Digital Maturity
“The world is an evolving world of increased maturity, and I believe the bottom is where we have been. This is putting in the basic infrastructures also for the GPRC oriented environments. It’s the basic infrastructure of ERP systems.” – Peter Sondergaard
Peter Sondergaard highlights an important phase in the evolution of GPRC – the integration of GPRC principles into ERP systems. In the older generations of digitalization, organizations focused primarily on establishing the basic infrastructures for GPRC-oriented environments. This involved integrating GPRC functionalities into enterprise resource planning (ERP) systems. The current model is of organizations that do surveying, benchmarking, and assessing their digital maturity. However, this generation primarily focuses on internal operations and fails to fully embrace external factors and new product offerings. We are growing from digital products, and digital processes, to a period of creating a digital twin of an organizational structure that allows modelling everything, including external factors that affect the business, and beyond to a future of using AI (Artificial Intelligence), supported with human intelligence.
Escaping the Inevitability of Failure
“Now trying to manage governance, risk and compliance or today what we’re calling GPRC, governance, performance, risk and compliance, with documents, spreadsheets, and emails is a recipe for disaster. It’s what I call the inevitability of failure.” – Michael Rasmussen
Michael Rasmussen warns against relying on outdated and inefficient methods, such as documents, spreadsheets, and emails, for managing GPRC. It is crucial for organizations to invest in modern GPRC technologies that can provide real-time insights and enable proactive risk management. By leveraging dedicated GPRC software solutions, companies can move away from the “inevitability of failure” and transform their GPRC efforts into a strategic advantage.
The Cart Before the Horse: Understanding When to Use Technology
“One of the things that frustrates me in this space is when organizations like an insurance company called me in. They said, we just bought GRC. Now come and tell us how to do GRC. There’s technology for GRC or GPRC, like our host today, Corporater.” – Michael Rasmussen
Michael Rasmussen draws attention to a common misconception regarding GPRC implementation. Organizations often make the mistake of investing in GPRC technology without fully understanding its purpose and value. GPRC technology, such as the offerings provided by Corporater, can enable, streamline and enhance a GPRC program. However, it is crucial to first establish a solid foundation in GPRC practices and processes before adopting such technologies to ensure optimal results.
Embracing the GPRC Framework
As the business landscape evolves, embracing the GPRC framework becomes a necessity rather than an option. Organizations must understand that GPRC is not just a standalone technology or a checklist to tick off; it is a comprehensive approach towards effective governance, management, and assurance of an organization’s performance, risk, and compliance. By incorporating GPRC principles into their strategic planning and decision-making processes, companies can navigate the complexities of the modern business world and achieve long-term success.
Looking Ahead
The journey of GPRC has been transformative, transitioning from rudimentary infrastructures to embracing innovative technology. As Tor Inge Vasshus, Peter Sondergaard, and Michael Rasmussen assert, GPRC is more than just a framework; it is a mindset that fosters excellence, control, and resilience in today’s business landscape.
The interconnectedness and digitalization fostered by GPRC cultivate an environment where all aspects of the organization work together toward the same goal. It streamlines decision-making processes, promotes collaboration between departments, and enhances operational effectiveness. By adopting the GPRC model, businesses can transform into connected enterprises that drive value, sustain growth, and stand resilient in a dynamic business landscape.
This is a précis of the keynotes at the G[P]RC Summit 2023. To know more, visit gprcsummit.com. To watch all the keynote recordings, visit the G[P]RC Summit playlist.
