1.INTRODUCTION
Since commencement of self-administration, government agencies have continuously proved to be inefficient in regards to service delivery and proper performance of its duties. The quintessence for which they exist is to bring some form of unity and cohesion within a given societal setup, seeminglyincreases difficultiesduring its operations. An overarching explanation to this might be due to the bureaucracy involved in handling issues. In order to improve the efficiency in governance, two important aspects are considered; compliance and risk management. These two aspects of an organisation determines its real worth.
Governance, risk management and compliance (GRC) is the umbrella term covering organizations approaches across these three areas. The three normally work cohesively, in conjunction within an organization, to achieve the important purpose of meeting its objectives. Integrated GRC is a reversal of normal traditional approaches, without centralising GRC functions but seeking to integrate all relevant policies, processes, procedures and controls. Precisely, it is designed to identify and standardise common processes, procedures and controls ensuring that they are consistently applied throughout the organisation.
This dissertation will outline the main GRC corporate principles and how customs and risk professionals can apply these principles of GRC across various organisational aspects.
2.Description of Proposed Project
Customsenforcement plays a vital role in preventing illegal movements of people and goods across borders while enhancing trade. Omani Customs, as a Directorate General under Royal Oman Police, faces added responsibilities and loopholes than usual custom procedures. Thepolice force is a moral entity with legal authority. In order to move towards democraticservices, customs enforcement have the obligation to regulate and check their authority through practices of accountability and transparency.
Driven by current economical situations, the GRC approach is rapidly emerging and could benefit the economical position of Oman. This enterprise-wide and holistic approach integrates the three areasbecause of several changes; technological advancement, increases in data storage, market globalization and increased regulation. Using the same traditional ‘silo’ management approachhas proven inefficientfrom increasing GRC related requirements that most organizations must sustain. Soft introduction to GRC in the Omani customs systemand the potential benefits will be an advantage towards transparent and harmonized procedures.
Traditional organisational GRC functions foster separate operations and focus, such functions often located in different departments with differing reporting lines. Reference to GRC integration in this research for movements towards modern customs will be contrasted to the current silo approaches.
3.Aim
The primary purpose of this dissertation is to analyse legal and operational Omani Customs current processesand address how to improve working environments using coordinated approaches to GRC methodologies.This dissertation will also give GRC methodology critical analysis and answer how GRC, as a corporate concept, may benefit government agencies.
4.Importance
It is mandatory for Omani Customs to implement GRC methodology particularlyafter recent events that occurred through the Arabian Spring in 2011. Thisstudy could play a significant role in Sultanate protection from proliferation of illegal goods while enhancing its economic wellbeing. Such transformations encourage interventions between official entities and the community.
This dissertation will be the first to apply the theoretical model described in the recognized literature field of GRC theory, customs environment in general and to customs in a Gulf State. The significance of the research findings will therefore establish if GRC is an appropriate, operational and strategic approach to managing customs work elements.
5.Research Questions:
The research will be guided by the following questions:
1. What is GRC?
2. What are the main factors that help leading to GRC?
3. What are the risks involved in compliance with the obligations?
4. How can risks be managed to obtain maximum compliance?
5. What are the current working processes in Omani Customs?
6. What are the obligations of the Customs (strategic)?
7. What is the extent of adoption of GRC practice among customs in terms of:
Operating strategies, Oversight mechanisms
Organizational silos, Wasted resources and information
Unnecessary complexity, Data integrity
6.Literature review
A risk can be defined as the possibility of loss of value such as physical health, social status or wealth as a result of activities either foreseen or unforeseen. In other words, it is the interaction with uncertainties. Moreover, compliance means conforming to a given rule, it may be a policy, law or standard.
Compliance is defined in Australian Standard Compliance programs, AS3806-2006, as: “Adhering to the requirements of laws, industry and organizational standards and codes, principles of good governance and accepted community and ethical standards.” Compliance is the principle of ensuring that an organization operates according to predetermined rules; which guides everyday organisational operations. However, to conform to the set guardrails, risks have to be undertaken.
Further more, governance may be defined similar toRebecca MacKinnon’s position, co-founder of Global Voices Online:“Governance is a way of organizing, amplifying, and constraining power”;which is the view this thesisespecially takes. As one can see the important of GRC disciplines, each one of them consists of four basic components: strategy, processes, technology and people. Also, this research will analyse and heavily rely on variousliterature to determine the path in preparation of the proposed project, mainly worksrelating to the public sector such as ‘The Maturity of GRC in the Public Sector’ by AGA.
These disciplines andregulatory components are now to be merged in an integrated, holistic and organisation-wide manner – aligned with operations that are managed and supported through GRC. In applying this approach, organisations long to achieve the objectives: ethically correct behaviour, and improved efficiency and effectiveness of any elements involved.
7.Research Methodology
The dissertation will besecondary research.First, the research will involve defining and reviewing GRC literature globally and its application to Omani lawsand Customs working processes.
Next, other sources of information will include in-depth analysesofOmani Customs and trade relationships with important stakeholders. Secondary sources will be obtained from relevant international operational guideline practices, legislation, policy documents, academic literature and recorded reports from police administrations and international organizations. Books, articles, academic research and court rulings will be usedas secondary sources.
Theoretically, it will analyse and review current laws and regulations along with internal and external documentations cycle. It will also contribute to existing GRC literature in the Omani laws – if any- along with practical customs literature. Practically, it will discuss the working conditions in Omani Customs and try finding systematic approaches using GRC principles for enhanced governance and working environments.
By using the aforementioned methods, the researcher will identify approaches in the legal system, describe current complex work environments, explore strengths and weakness in the system based on international standards and obligations, government visions, advantages and disadvantages. The strategic approach for the research will be guided byKPMG’s holistic GRC model.
The dissertation will also take a top-down implementation approach and will identify where to use key performance indicators,KPI’s, to check effectiveness. Furthermore, the operational part of the research will by guided by COSO enterprise risk managementintegrated approach for GRC.
By doing so, this study will provide the Omani regime with new perspective ideas and possible solutions to overcome difficulties inherent in current (customs) policing legal systems.
8.Research Timetable
Week 3: Submission of the research proposal.
Weeks 4–5: Refining of research parameters in light of feedback from the research proposal.
Weeks 6–7: Conducting further research (answering research questions 1 and 2).
Week 8: Preparation of a research progress report.
Weeks 9–11: Conducting further research and refining the structure and content of the project after considering the feedback from the research progress report. Start research for questions 3, 4 and 5.
Weeks 12–13: Researching questions 6 and 7 and preparing a draft dissertation.
Week 14: Finalising the researchproject after consultation with supervisors and final submission of the dissertation.
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