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    HomeBusiness InsightsTips to Consider Before Investing in a GRC Solution

    Tips to Consider Before Investing in a GRC Solution

    Since businesses are constantly growing and evolving, their approach to governance, risk, and compliance (GRC) must also keep up. Relying on spreadsheets, emails, and point solutions might have worked before, but with expanding operations and a changing risk landscape, it is time organizations upgrade. Investing in modern GRC tools and software isn’t just a nice-to-have anymore. In fact, with 50% of Indian businesses emphasizing a ‘safety first’ approach as a core aspect of their organizational culture, picking the right GRC tool is essential for staying ahead and managing risks effectively. 

    Also read: Top ‘Must-have’ Features in Enterprise Risk Management Programs

    Choosing the right GRC software is anything but easy with the ever-expanding number of vendors, each offering distinct benefits. In fact, as per a Gartner survey, the selection process is further complicated by the diverse needs of stakeholders across departments, including enterprise risk management, corporate compliance, IT and cybersecurity, and credit risk management, among others.

    Organizations need a holistic GRC solution that is integrated, scalable, and intelligent while also addressing the needs of diverse stakeholders. 

    So, what specific features should decision-makers look at when selecting a GRC solution? We will explore this and other essential factors to consider when purchasing GRC software with insights from a buyer’s perspective. 

    1. Choosing Systems with Connectivity and Integration

    When evaluating GRC solutions, organizations frequently encounter terms like ‘integrated or connected approach’ and ‘unified system.’ These terms are not just jargon. They represent a practical need for organizations to overcome fragmented governance, risk management, and compliance processes.

    Many struggle with fragmented GRC activities due to varying process maturities and shifting business needs. This fragmentation leads to organizational silos, duplication of efforts, data inconsistencies, and increased compliance costs. This siloed approach hampers the organization’s understanding of risk relationships and making informed decisions in an interconnected world where risks and controls are increasingly shared.

    A truly integrated GRC solution should offer a unified framework that includes a common taxonomy, centralized risk and control libraries, and consistent risk appetite management across the enterprise. This integrated approach not only improves efficiency by automating repetitive tasks but also provides a single source of truth for all stakeholders, improving real-time risk visibility with actionable insights. 

    More importantly, interoperability is a crucial element. While an integrated system centralizes risk management, it must also support easy information exchange with other systems. This means integrating with regulatory content providers, risk rating agencies, and threat intelligence sources via APIs or connectors to effectively capture and aggregate all relevant data.

    1. Investing in Cloud Solutions for Enhanced Agility and Scalability

    A robust GRC solution must be adaptable to changing business needs. It also needs to be capable of scaling up or down as required. This is where cloud-based GRC solutions come into play. These solutions offer the agility and flexibility that organizations need, providing superior security, efficiency, and ease of upgrades compared to traditional on-premise systems. This aligns with the broader digital transformation trend, as a McKinsey report forecasts that companies will allocate around 80% of their IT budgets to cloud computing this year. 

    Additionally, the rise of low-code/no-code platforms transforms GRC solutions, allowing organizations to customize and configure their systems without extensive reliance on vendors. This capability enhances productivity and accelerates outcomes by making quicker adjustments to meet organizational needs.

    1. Leveraging AI for Intelligent GRC Solutions

    Artificial intelligence (AI) is fast becoming integral to GRC processes by significantly transforming how organizations manage governance, risk, and compliance. AI applications like regulatory scanning, managing issues, recommending corrective actions, and optimizing control environments reshape GRC workflows. By delivering actionable insights promptly, AI takes decision-making speed to the next level while increasing team efficiency and giving a competitive advantage.

    Modern GRC solutions must evolve from mere workflow automation tools to advanced cognitive systems that offer a bird’s eye view for reporting. Organizations now seek solutions supporting cross-product reporting, enabling data integration from multiple sources into unified reports. When selecting a GRC solution, assessing the vendor’s technological capabilities and innovation strategy is essential. Continuous innovation is key so the GRC solution remains relevant and adaptable to the changing business and tech landscape.

    1. Embracing Continuous Monitoring for Effective GRC Management

    A periodic approach to managing governance, risk, and compliance (GRC) no longer cuts in a digital landscape that keeps changing. Organizations face a constantly evolving environment where protecting IT infrastructure, data, and assets from cyber threats, staying ahead of vulnerabilities, and adhering to various regulations demand continuous vigilance. Depending solely on manual efforts can lead to delays, missed risks, and compliance issues. Result? Organizations are exposed to potential threats and blind spots.

    An impactful GRC solution should offer an autonomous, always-on approach that operates continuously in the background with minimal human intervention. Organizations should look for solutions that support autonomous capabilities, including continuous testing and monitoring of controls, proactive identification of weaknesses and gaps, and regulatory adherence. Ideally, the solution should automate evidence collection, generate real-time reports, and alert concerned personnel for timely actions.

    Takeaways on GRC solution

    Organizations today need GRC solutions that are more than just traditional tools. The ideal GRC solution should be cloud-based, offering scalability and agility while seamlessly integrating with existing systems. It should support a connected, cohesive governance, risk, and compliance approach. It should also ensure that all organization components are aligned and working together efficiently.

    Incorporating intelligent, AI-powered capabilities can significantly enhance risk and compliance management, providing actionable insights and automating routine tasks. Autonomous features are critical for continuous monitoring and proactive issue identification. They are also essential to reduce reliance on manual efforts and minimize the risk of oversight.

    A forward-looking GRC solution should also prioritize continuous innovation, adapting to emerging trends and needs through feedback mechanisms and strategic enhancements. These advanced features allow organizations to efficiently handle complex risks and build strong, reliable GRC practices.

    Shankar Bhaskaran, Managing Director, India, MetricStream

    The article has been written by Shankar Bhaskaran, Managing Director, MetricStream, India

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