According to Rangasamy (2009), it is predicted that only two thirds of property and half of the life insurance companies will cease to exist by the year 2015. This is because most companies are ill equipped and prepared to handle the risks facing them. To prevent a large number of business and non -business entities from closing down, it is recommended that all the entities must monitor their processes and adopt measures that comply with best operating standards.
Most companies are facing turbulent times. It is estimated that two thirds of property and half of the insurance companies will die before 2015. Companies in other industries are not insulated from dangers facing them either. Therefore, integrating governance, risks and compliance is becoming a necessity and top priority for entities that wish to withstand the test of time. The high profile scandals that have been reported in the past make the implementation of integrated GRC mandatory.
Governance refers to activities and process necessary for achieving the company’s objectives. According Leech (2010), governance is defined as set of relationships between shareholders and other stakeholders. It provides a framework for setting entities goals, objectives and strategies. legal and regulatory risks refer to risks caused by failure to comply with statutory and other formal regulations that may lead to law suits, bankruptcy and entity closure. Compliance refers to adhering to industry specific regulations set forth by internal and external regulatory bodies and authorities. When, regulations are incorporated as entities policies and procedures, it is expected that it will have direct impact to the financial health of the organization. Regulations are enacted to protect entities’ key stakeholders and the members of the public from accounting errors and practices that are fraudulent. Compliance help the organization to reduce overhead costs, time wastages and protect brand