Governance, risk management, and compliance (GRC) is a necessity in every organization. Some parts of GRC management are mandated by the government and regulatory bodies, while other parts are recommendatory. However, all of them are crucial for maintaining the cybersecurity posture of the organization.
Without a robust GRC program, the organization might fall victim to cyber-attacks, incur fines and penalties due to non-compliance, and struggle to keep up with new rules and regulations. More and more organizations are now relying on GRC platforms to automate and simplify the GRC process.
A GRC management software solves many issues for the organization. It simplifies the governance process, makes risk management more transparent, and the compliance process manageable. After considering the return on investment (ROI) of the GRC platform, if the management team thinks it’s a good investment, the organization should invest in the platform.
In this article, we will discuss how investing in GRC management software can be beneficial for the business of an organization.
Making the business case for GRC
To make the business case for GRC, we can consider the following benefits GRC brings to the business organization.
A. Improved Compliance
For a business organization, compliance includes adhering to the applicable laws, rules and regulations, and industry standards. GRC software can improve the organization’s compliance in the following ways:
1. Conduct regular assessments
Regular assessments include internal audits, risk assessments, and gap analyses. The organization can conduct regular assessments, find loopholes, and take corrective actions. These tasks are much easier, faster, and foolproof when carried out using GRC software.
2. Establish clear policies and procedures
Policies like information policy, data privacy, and others should be defined and communicated to all stakeholders. They must be trained in the new policies and procedures if there is any need. Proper communication of the policies can help the employees understand their role in the organization and its relevance. A GRC program should include a detailed version of all the policies.
3. Monitor compliance
A comprehensive GRC program must incorporate a monitoring system to ensure adherence to the organization’s applicable rules and regulations. Typically, the monitoring system works on key performance indicators (KPIs), exception reports, and regular reviews of compliance-related activities.
A well-designed GRC program can improve the visibility of the process. So the management can review the process in real time and remove any deficiencies in the program. Risk management is much better when a strong GRC program is implemented, leading to fewer cyber threats.
A well-designed GRC program can improve accountability among employees. It ensures that every employee is certain of their roles and responsibilities as well as the consequences of non-compliance. Secondly, it makes sure that the employees of the organization are all working in the same direction, all the while being conscious of the rules and regulations that govern the organization.
Examples of organizations that have benefited from GRC investments in Scrut
B. Reduced Risk
Risk management is the process of identifying, assessing, mitigating, and responding to the risks that can impact the organization negatively. These risks include risks associated with regulatory compliance as well as broader operational and strategic risks that may impact the organization.
A strong GRC program can reduce the organization’s risks in the following ways:
1. Centralized risk management
A GRC system offers a unified platform for managing organizational risks, minimizing the chances of overlooking them. Automating the GRC process enhances the efficiency and consistency of risk assessment.
2. Real-time monitoring
A GRC management platform can detect risks faster through real-time monitoring of the organization’s processes. This helps the organization respond quickly to emerging risks. Before the risk can take a serious turn, the organization can take measures to prevent them.
3. Data analytics
Automatically analyzing data to identify trends and patterns is one of the benefits of a GRC management software. This further helps the organization to identify and detect emerging risks. The organization can consider these risks and adapt their risk management strategies accordingly.
A strong GRC risk management software includes automated risk assessment processes that help identify potential risks. It also includes risk management processes that allow organizations to effectively manage identified risks. The management of the organization can know about the identified risks and make informed decisions with the full picture in mind.
Using the software can promote a risk-aware culture within the organization. This helps employees identify and detect risks and report them before they turn into bigger issues. It also helps the organization become better at risk management through a continuous cycle of monitoring and improvement.
Examples of organizations that have successfully mitigated risks through GRC investments in Scrut
C. Streamlined governance
Governance is one of the most important parts of the GRC program. A strong governance policy has guidelines for every difficult situation in the organization. This helps the organization to move in a single direction with all hands on deck. It also prevents unwanted situations like data breaches and cyber-attacks.
A robust GRC platform can provide templates of governance guidelines to the organization. The organization can work on these templates and select the policies and procedures applicable to it. The governance guidelines also mention the penalties faced by any employee if the guidelines are not followed. A clear hierarchy of roles and responsibilities encourages the employees to follow the rules.
The governance policies should be communicated to the employees in simple language. If there is any requirement for training, the employees should get it to follow the guidelines.
Examples of organizations that have successfully cracked governance through GRC investments in Scrut
D. Enhanced Decision-Making
Timely and accurate information is critical in the organization, as it allows decision-makers to base their decisions on updated and reliable information. GRC management software provide visibility and access to information to decision-makers. Decisions based on real-time information tend to be accurate and timely. They reduce risks and improve the efficiency of the whole process.
GRC management software can provide leaders with valuable insights about the organization by churning out data and turning it into meaningful information. It provides them with trend analysis and exception reports, allowing the management better transparency.
E. Increased Efficiency
Investing in a GRC management platform can increase the efficiency of the organization multifold. GRC can streamline all three processes of governance, risk management, and compliance. As a result, the organization can save money and time in different ways. The organization can avoid overlaps of processes, saving employee time. Due to the improved visibility, the management can make quick, informed decisions again, saving their time and effort.
As the organization follows all the rules in becoming compliant with the applicable standards and regulations, the organization will face fewer fines and penalties for non-compliance. It will also face fewer cyber threats, saving millions of dollars in data breaches – all thanks to the GRC management platform.
A compliant organization can display its audit certification on its websites to let the stakeholders know that they are complying with the relevant standards. This will also increase trust among stakeholders and increase transparency. Customers, today, are becoming more cautious about their data. They trust the companies that can prove with confidence that their data is protected. This will increase the turnover for a compliant organization.
Organizations should invest in products that provide benefits to their business in the short as well as long run. While talking about GRC management software, we saw that it improves compliance, reduces risks, streamlines governance, enhances the decision-making process, and increases efficiency.
Although the ROI of the GRC management platform is different for every business, the benefits are more or less the same. So, if you are thinking about investing in a GRC platform, you should compare the ROIs of the platforms available in the market and determine how they benefit your organization.
To know more about one of the best GRC management software in the market today, contact our experts at Scrut.
Investing in GRC can lead to several benefits, including improved risk management, better compliance, enhanced governance, enhanced decision-making, and increased efficiency.
GRC helps organizations manage risks by providing a comprehensive view of risks across the organization, enabling organizations to identify, assess, and prioritize risks and develop risk management strategies to mitigate or avoid risks.
The ROI of investing in GRC can be significant, including improved risk management, better compliance, enhanced governance, increased operational efficiency, and reduced costs. The ROI of investing in GRC can vary depending on the size and complexity of the organization, as well as the specific GRC solution implemented.