Time for convergence of governance, risk, and compliance activities.

In September 2009, the Economist Intelligence Unit carried out a global survey on behalf of KPMG International, assessing the convergence of governance, risk, and compliance (GRC) activities. The research looked at the driving forces behind convergence, its costs and perceived benefits, and the barriers to achieving this goal.

The Economist Intelligence Unit surveyed 542 executives from a wide range of industries and regions, with roughly one-third each from the Asia Pacific; Americas; and Europe, Middle East, and Africa regions. Approximately 50% of respondents represent businesses with annual revenue of more than $500 million. All respondents have influence over, or responsibility for, strategic decisions on risk management, and more than one-half of respondents are C-level or board-level executives.

KPMG International summarized the survey's findings in a press release issued February 15, 2010. According to survey findings, businesses around the world are expressing a growing appetite to bring together the many and disparate governance, risk, and compliance bodies that exist in today's typical corporation. This conclusion is based on the findings in The Convergence Challenge, the survey undertaken by the Economist Intelligence Unit. Of the businesses surveyed, 64% see GRC convergence as a key priority for their business.

This newfound intent is driven by overall business complexity and a desire to reduce risk exposure. Respondent businesses also claim that the cost of GRC activities is significant and is set to rise further.

Against this backdrop, companies appear keen to rationalize the various strands of GRC activity that have sprung up in response to the regulatory burden of recent years. However, the survey shows that only 11% have so far managed this task.

Although many respondents agree that GRC convergence is a priority, the task itself is clearly seen as a challenging one, with 45% of respondents finding it difficult to build a business case for greater convergence. Only 26% of respondents believe that convergence will help to bring associated costs down, only one-third see GRC expenditure as an investment rather than a cost.

Oliver Engels, European head of GRC at KPMG and a partner in the U.K. firm, commented, "Scratch beneath the headline numbers and some of these supplementary figures seem to represent a less-than-wholehearted endorsement for the full convergence of GRC activities. After several years in which the typical...