Due to the ever-changing dynamics of the corporate environment, any firm striving to fulfill its business objectives continues to encounter a slew of challenges:
- Individuals (diversity, millennials, skills gap, etc.)
- Regulations (e.g., SOX, HIPAA, GDPR, PCI-DSS)
- Processes involving technology (IoT, AI)
There are plenty of other factors to consider. As a result of this, businesses are increasingly required to implement mechanisms to ensure that they can effectively weather the storm of these complications.
GRC (Governance, Risk, and Compliance) is among the most critical components that any business must implement in order to fulfill its strategic goals and meet the customers’ requirements.
GRC And Business
The abbreviation GRC stands for governance, risk, and compliance. However, the phrase GRC encompasses a lot more. GRC, according to industry experts, is a well-coordinated and integrated collection of all the tools required to enable principled efficiency at all levels of a company.
Principled management is a way of thinking and doing business that enables businesses to achieve their goals reliably while dealing with uncertainty and acting with integrity.
GRC Drivers for a Business
Regulation is, without a doubt, the most critical driver of GRC. While traditional businesses like banking, finance, healthcare, and telecommunications have historically borne the burden of regulation, the digital revolution is fuelling a risk in regulation that affects all organizations, large and small.
The use of data, particularly individually identifiable data, has enormous commercial potential while also posing a significant risk of abuse. As a result, governments and international organizations are paying more attention to how digital enterprises handle data.
GRC Benefits for a Business
Individuals and civil rights groups are becoming more aware of how an organization manages information technologies through policies, people, and the environment due to the surge in cyber-attacks that disclose personal data.
The following are some of the advantages of GRC:
- Better decision-making and more efficient IT investments
- GRC breaks down silos.
- Divisions and departments are less fragmented.
A collaborative strategy is the best option for any business trying to keep up with the ever-changing regulatory environment.
Business GRC Solution
Many firms are turning to technology solutions to satisfy their GRC requirements. These solutions allow executives to keep track of GRC across the organization by ensuring that business processes and information technology remain aligned with the firm’s governance, risk, and compliance standards.
Technology is indeed an excellent enabler for reducing the “compliance” overheard that comes with gathering and storing records.