In the IACM view, management actions and controls run day-to-day operations, but governance exists to ensure the organization is properly directed and constrained—setting boundaries, delegations, policies, risk tolerances, and oversight mechanisms. Additional governance actions and controls become necessary when management controls alone do not provide sufficient information, clarity, or guidance to keep behavior aligned with objectives, values, and risk appetite—captured well by option D (“constrain and conscribe” the organization). This can occur due to complexity, emerging risks, incidents, control failures, rapid change, new strategic initiatives, or shifts in regulatory/stakeholder expectations; however, the deciding factor is not merely growth (A) or external mandate (B), and it is never true that governance controls are “never necessary” (C). Effective GRC continuously evaluates whether the current governance layer is adequate to drive consistent decision-making, enforce accountability, and enable timely escalation—strengthening governance controls when gaps in oversight or direction are identified.
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