Nowadays the concept of Governance, Risk, and Compliance (GRC) is of a great importance for many companies. With growing regulations and added organizational threats (both internal and external), GRC continues to become more valuable, as it allows organizations to achieve objectives, address uncertainties and operate with integrity. Integrated GRC demands that several roles work in harmony. Audit, risk management and compliance teams must come together to share information, data, assessments, metrics, risks and losses.
GRC as a discipline is aimed at collaboration and synchronization of information and activities. If implemented effectively, it enables stakeholders to predict risks with higher accuracy, and capitalize on the opportunities that truly matter. By adopting a federated GRC program, process owners at the business unit level can independently assess and manage their own risks and compliance requirements; at the same time, key risk and compliance metrics can be rolled up to the top of the organization for reporting and analysis.
- Why should we integrate Governance, Risk, and Compliance (GRC)?
Risk and compliance information in the right format, at the right time and in the right hands is crucial for the organisational success. It supports quick and informed decision-making, which can save an organisation from financial and reputational loss, data breaches, compliance violations and more. Stakeholders need to always be mindful of issues such as ineffective controls, unmitigated risks and policy conflicts. The path to achieving this objective lies in integrating GRC. Now that we know that integrated GRC solution is important, let us understand why it is essential.
- Secures Assets
Assets in an organization can be anything, such as physical infrastructure, stored data, intellectual properties, data centers, human capital, e-assets, etc. Companies require their assets to be protected from all kinds of threats, such as natural calamity and cyber threats. There is a close competition between the data protectors and the data thieves. The point to be noted here is that as we develop more mechanisms to reduce cyber threats, cyber-crimes have evolved technologically as well. Government regulations and compliance standards help determine and implement controls to secure these assets. However, a centralized system and process that can monitor the smooth functioning of business in real time and raise a flag in case of any issue are essential to reduce the various risk exposures of the organization
- Regulatory Changes and Control Implementation
Regulations are not simple and common anymore. Each country has different regulations in place and enforcement level of these regulations varies up to a large extent. For example, companies operating with North American health data needs to comply with HIPAA, whereas, companies dealing with European personal data needs to comply with GDPR. Since multinational corporations generally operate in different regions, implementing controls requires identifying commonality between different regulations and standards in order to ease the process of compliance. Hence, it becomes efficient to handle controls and control failures when the integration of GRC is done.
- Cost Saving and Revenue Generation
Couple of years back, risk management and compliance were considered to be a part of the cost centre. Earlier, companies used to spend on GRC without understanding the financial benefits. Complying with standards was like a mere advantage and not a need. But the scenario has changed drastically today. GRC acts as a cost saver for the customers by ensuring automation of common processes and implementation of common controls to mitigate risks. From a service provider’s perspective, it acts as a revenue generator because GRC has become a necessity for all the customers and expert services are in huge demand.
- Streamlined Management
Tracking down important information across multiple documents, computers, and/or storage methods is time-consuming and makes data and task management a bigger challenge than it has to be. Automating manual activities and developing repeatable processes and workflows, on the other hand, simplifies day-to-day GRC management tasks, reducing time and resource requirements and minimizing human error.
- Greater Agility
Many organizations struggle with a lack of visibility into their business processes, vendor relationships, risk exposure, and other critical considerations for integrated risk management. Uniting analytics and reporting for these and other areas under one platform enables organizations to quickly analyze risks and opportunities and develop data-driven action plans. As a result, launching a new product or service, contracting with a new vendor, or responding to market changes becomes faster and more efficient.
Even though organizations may have different teams or managers handling ERM, vendor management, compliance, or business continuity, their management processes and data don’t have to be siloed. However, the benefits of GRC integration are only possible with a two-pronged approach of – strong policies and procedures for governance, risk, and compliance management, and a flexible technology architecture that supports and enhances your GRC initiatives.
If your organization is looking for ways to tie those two pieces together, PATECCO is able to support you. We help businesses quickly implement a holistic, integrated GRC program using built-in best practices.