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Is ERM GRC? Or Vice Versa?

If you lump them together, there's a chance that compliance will overshadow other risks

By Russ Banham | Updated on June 01, 2007

Christina Kite has spent the last three years crafting an enterprise risk management (ERM) program at Cisco Systems Inc.–one that her peers will quickly tell you they envy. Kite’s ERM strategy–and Cisco’s– is not so much about eliminating or reducing risk. Instead, it is predicated on the goal of quantifying risks, so that Cisco can take on more and better risks. “Risk for us is just as much about growth and optimization as it is about protection,” observes the vice president of workplace resources and enterprise risk management at the San Jose, Calif.-based Cisco. “It’s about knowing your risks and your risk tolerance.”

With this philosophy, it’s not surprising that Kite objects to recent efforts to substitute best-practices GRC–governance, risk and compliance–for ERM, or even to treat them as interchangeable. “We see GRC really as a tool, a technology module, and not ERM per se,” says Kite. “We’re very conservative in governance and compliance, but risk-takers in the business model area. ERM is not about being compliance-driven or regulatory-driven. [ERM and GRC] are two different things.”

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