Companies that neglect to implement GRC practices may face numerous challenges and negative consequences, such as the following:
Operational inefficiencies due to lack of clarity in roles and responsibilities
Vulnerability to risks, including operational disruptions, financial losses, and reputational damage
Legal and financial penalties brought about by violations, inadvertent or not, of laws and regulations
Missed opportunities for growth and innovation resulting from too-conservative approaches
Loss of stakeholder confidence because of the lack of commitment to sound governance and compliance practices