By Milcah Tanimu
The Financial Reporting Council (FRC) is urging companies to bolster their integrated Governance, Risk, and Compliance (GRC) activities in their day-to-day operations. Mr. Titus Osawe, the Director of the Governance Directorate at FRC, delivered this call during a press briefing in Lagos, held alongside a two-day Corporate Governance training on GRC, organized in collaboration with Planet Governance Advisory Limited.
Mr. Osawe explained that GRC is a comprehensive course designed to equip organizations with the knowledge and tools needed to enhance integrated GRC activities across their operations. This course empowers companies with the necessary skills to comprehend their obligations, manage risks effectively, and establish a robust framework for addressing issues when they arise.
He emphasized that the adoption of GRC is vital in minimizing business failures and is also instrumental in attracting foreign investments to the country.
Mr. Osawe stated, “The Nigerian Code of Corporate Governance 2018 is an initiative of the Financial Reporting Council, and the core essence of corporate governance is to ensure that every entity operates efficiently, outliving its original owners.”
He further elaborated on the critical aspects of the code that require emphasis, especially in light of recent business failures, both on a global and local scale. Effective governance, risk management, and compliance are essential elements to prevent these issues.
Regarding risk, Mr. Osawe noted, “High risk often brings high returns, but this should be approached intentionally with careful consideration.”
In the context of compliance, he stressed that it is closely related to governmental regulations and rules. Ensuring an entity’s sustainability and success involves adhering to these laws and regulations.
In conclusion, Mr. Osawe underlined that Governance, Risk, and Compliance are key components of corporate governance and are crucial to the longevity and stability of any entity. This comprehensive approach aims to address the root causes of business failures and enhance corporate sustainability.