Governance, risk management, and compliance

Governance, risk management, and compliance are big fancy words that grownups use to talk about making sure things are done the right way in a company or organization. Let's break it down into simpler words so you can understand it better.

Governance is like rules that grownups make to keep everything in order. In a company, there are people who make sure that everyone follows these rules. These rule-makers are usually called the board of directors or the management team.

Risk management means they look for things that might cause trouble and try to prevent them before they happen. They check to see if there are any problems or dangers that might make the company lose money, get into trouble, or make people unhappy.

Compliance means following the rules and laws that the grownups make. It's like doing what mom and dad tell you to do - you don't always like it, but you have to do it anyway.

So, in summary, governance is all about the rules and the people who make sure that everyone follows them, risk management is about finding problems before they cause trouble, and compliance is about following rules and laws that have been made so that everything runs smoothly.