There are security risks and compliance mandates that affect organizations in all industries, regardless of their size. Irrespective of what industry you are in, IoT (Internet of Things) is becoming increasingly prevalent and there is a growing push to establish more data governance protocols to ensure better control over data. By implementing an effective Governance, Risk Management, and Compliance (GRC) strategy, organizations will be able to function cohesively, safely, and efficiently. We will examine some of the common misconceptions about GRC programs and the benefits associated with implementing GRC software.
Common Misconceptions About GRC
An organization’s Governance, Risk Management, and Compliance (GRC) strategy is the process of taking steps to manage each area of its business in accordance with every industry regulation and government standard. As a result, an organization can manage IT and security risks, reduce costs, and meet compliance requirements by aligning IT and business objectives. Using compliance technology resulted in an average savings of $1.02 million for organizations. Globally, the increase in the amount of digital information that organizations produce calls for a push toward the implementation of a GRC program within those organizations. A GRC program is designed to reduce the security risks associated with digital information, as well as keep an organization secure, compliant, and productive.
The following are four common misconceptions about GRC programs that have prevented organizations from implementing them:
- GRC programs are only for regulated industries and for large corporations: Contrary to popular belief, this is not the case. All organizations are affected by IT threats regardless of the industry they are in or their size. A GRC management strategy/tool will facilitate the timely mitigation of gaps in the risk of exposure.
- A manual GRC management initiative is sufficient, and each department should oversee its own GRC program: It’s fine to have this process for a short period of time, but as time progresses this process may result in duplicate or inaccurate data being collected since each department operates according to its own interests and not the general interests of the entire organization.
- GRC initiatives do not need to be maintained: An effective governance, risk management, and compliance program is much more than a one-time project, but is one that needs to be continuously updated, monitored, and enforced. It is essential to keep in mind that business objectives as well as industry regulations are subject to change, and your GRC program should be adjusted accordingly. That’s why it’s critical to have a flexible GRC framework in place
- All GRC software systems are the same: With the help of GRC technologies, organizations can easily manage their operations as well as ensure that compliance and risk standards are being met. It should be noted, however, that they aren’t all the same. In the case of any software platform, there are pros and cons to what it can accomplish for the organization. There is no one-size-fits-all solution for each platform. In the right hands, a GRC program is an investment in achieving a competitive advantage through an information business strategy that contributes to growth, productivity improvements, and risk reduction while remaining compliant and contributing to business growth.
Meeting Organizational Needs
The use of GRC management tools improves transparency, efficiency, and accountability in the organization. It is imperative for organizations to have a clear business objective before implementing any tool to ensure success. Organizations often seek out technology solutions with the sole purpose of improving their processes. However, they are disappointed when they realize they do not align with their business information needs, compliance, and risk management. The implications of non-compliance could affect business performance, and result in costly mistakes, fines, penalties, and lawsuits. For this reason, selecting the right GRC management software tool is of the utmost importance, as it enables an organization to make well-informed decisions regarding risk management, as well as mitigate the exposure to incidents that can cause loss or risk. It also considers compliance using a comprehensive GRC management framework. Having a flexible GRC framework ensures that it is adaptable as it integrates all departmental goals and needs, as well as the organization’s overall goals, providing insight into data, prioritizing critical tasks, collaborating with other departments, and conducting high-impact audit activities. All while meeting ever-changing industry regulations. By investing in a GRC program and management tool, you will:
- Streamline management processes to save time and money
- Reduce losses and allocate resources more efficiently
- Enhance the quality of data and make it easier for auditors to review information- thus saving your organization money
- Reduce gaps in risk and compliance – ensuring peace of mind
- Identify opportunities for your organization
- Meets the insurance and contractual requirements of clients
- Enhance performance and ROI through collaboration and efficiency
Governance commences at the highest level of the organization and trickles down to all employees. Organizations must train and obtain buy-in from all employees and stakeholders for changes to be implemented at all levels thereby driving accountability, security, efficiency, and visibility. In smaller organizations, there may not be risk and compliance departments available to address ongoing regulatory demands from government and regulatory groups to ensure that they are met within the organization. If one or two department(s) fail to comply with the required standards it affects the entire organization. Reducing risk in line with values within an organization requires people, processes, and technology. The entire process may seem daunting but professionals like Ivionics can help get your organization up and running. Contact us today to learn more about our consultation and implementation services of GRC solutions.
You can learn more from our experts about GRC and the benefits of a powerful management software tool here.