In many ways, the core of the business can be found in its governance and compliance strategies. Both elements address the day-to-day operations of a company, but what does this focus mean to a company’s larger objectives? In order to understand how these processes connect with the larger objectives of the company, it helps to look at how these various disciplines work together. While every aspect of the company will have different roles and functions, all of them will be focused on one objective – to provide a quality product and/or service that effectively meets customer demand.
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Governance, risk management, and legal compliance are the key words covering the three disciplines: governance, risk control, and legal compliance. All three disciplines are intertwined, because each focuses on the organization as a whole. For example, when a company is governed by governance, it focuses on internal decision making as well as external implementation and regulation. When it comes to risk control, the focus is internal as well as external, as the company must ensure that it is meeting regulatory requirements. Finally, when it comes to legal compliance, this focus focuses on both internal and external controls at the highest levels – both on the supply chain as well as on the product or service that is produced.
Creating a truly comprehensive picture of how all of these disciplines work together, and how they interact to ensure the long-term success of the organization, is the goal of any executive v. consultant relationship management practice. In general, the better the management practices and the stronger the governance, the more smoothly the company will operate, and the fewer risks it will face. A good governance practice also creates a culture within the organization that focuses on the principles and goals of the organization, promotes open communication between staff and management, and ensures that all parties are held accountable for their actions. This type of proactive governance will not only help to improve management function, but will also help to maintain a high level of productivity while simultaneously lowering costs and avoiding risks.