Governance, risk management and compliance: the benefits outweigh the costs.

Building robust corporate governance systems and processes, managing risk on a global scale, and complying with an increasingly vast web of regulatory requirements is difficult, costly and time consuming work; however, according to PricewaterhouseCoopers' Eighth Annual Global CEO Survey, CEOs, worldwide, think it is well worth the effort.

Of more than 1,300 CEOs, 43% consider governance, risk management and compliance (GRC) a value driver and a source of competitive advantage, and 56% believe that it has a positive effect on reputation and brand. In Canada, 25% of CEOs believe that governance, risk management and compliance are value drivers and a source of competitive advantage, and 51% believe that it has a positive effect on reputation and brand. However, survey responses indicate that effective governance, risk management and compliance are not easily achieved and that CEOs are struggling with their implementation.

While 60% of Canadian CEOs feel that codes of conduct are fully developed in their companies, far fewer believe that their compliance and ethics training programs meet the same standards (36%). Twenty-four per cent of Canadian CEOs said that their measurement of performance in these areas is not well developed, if at all.

"Critics of increased regulation such as Sarbanes Oxley and Bill 198 and resulting GRC policy and procedures argue that integrity is what matters most, but you can't legislate integrity," said Mike Harris, national leader of PwC's Canadian Corporate Governance Practice. "However, without effective controls over GRC matters, accurate information, reporting to management and the Board and appropriate monitoring mechanisms, even companies of impeccable integrity and the best of intentions, are at risk."

For more information visit www.pwc.com.

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