The interconnected global economy has created unprecedented opportunities for organizations to expand their reach, increase profitability, and access new markets. However, the resulting interconnectedness of risk has also escalated several issues relating to Governance, Risk, and Compliance (GRC). In the OCEG GRC Readiness for Rapid Change Survey 2022, 85% of respondents reported significant changes in their GRC universe in the last two years, and only 7% said they had "excellent" GRC capabilities.
At a recently held MetricStream-hosted webinar, GRC Pundit Michael Rasmussen, GRC 20/20, Pat McParland, AVP, Product Marketing, MetricStream, and Loren Johnson, Senior Director, Product Marketing, MetricStream, got together to discuss the evolving GRC environment and how organizations can thrive in this interconnected risk landscape.
Watch the Webinar: 2023 GRC Strategies to Accelerate Risk, Compliance, and Audit Programs
Here are some key highlights from the discussion.
- Organizations Need New Strategies to Manage Interconnected Risks
As risks evolve rapidly, organizations must move beyond traditional siloed thinking. Only an integrated and connected approach to risk management can help organizations understand the linkages and interdependencies of various risks, including financial, geopolitical, cyber, and physical security. Since interconnected risks can have a domino effect, understanding the relationships between risks is crucial.
- Importance of a Compliance Control Function
A compliance control function is a crucial component of risk management, as it helps identify and address gaps in the organization's risk management strategies. It provides an independent review of the risk management process and ensures the organization acts with integrity to fulfil its regulatory, contractual, and self-imposed obligations, values, and controls. A mature compliance control function should be continuous and autonomous, monitoring controls and ensuring risk remains acceptable.
- Increased Focus on Risk Agility and Resilience
Agility and resilience are integral to an effective risk management strategy. While resilience is the ability to bounce back from a setback, agility is the ability to adapt quickly to change. Until now, GRC professionals have prioritized resilience, but agility is equally essential. In 2023, agile risk technology will be more critical than ever to reduce costs, increase flexibility, and stay ahead of the competition.
With agile risk technology, organizations can be more adaptable, configurable, and scalable, making it easier to manage risks and respond to new challenges. In addition, leveraging technologies like robotic process automation and artificial intelligence can help organizations automate risk management processes and improve decision-making.
- Smart Systems, AI, and Automation is Integral to GRC
By leveraging advanced technologies like Artificial Intelligence (AI) and Machine Learning (ML), smart systems can transform GRC efforts and help companies build processes that minimize risks and drive business success. They can communicate and share data, reveal insights, and provide clarity so organizations can make better-informed decisions and stay ahead of competitors. These systems allow companies to get a comprehensive and real-time view of their GRC activities, streamline workflows, and reduce costs. Smart autonomous systems can identify potential compliance gaps and provide real-time recommendations by analyzing historical data, monitor and manage risks across GRC categories, stay ahead of regulatory requirements, and provide early detection and alerts on potential issues.
- People Skills and Expertise Cannot be Compromised
Equally important to autonomous and smart systems, are people who can demonstrate the expertise and skill to operate these systems. Moreover, as GRC becomes more of a strategic function, expertise will move from the bottom of the organization to the top.
Employees, especially the frontline, should be equipped to evaluate risk elements, interpret their meaning, and take the right actions to resolve them. In the short term, there will be more pressure within the environment and among GRC professionals to build up that expertise. This means that GRC will no longer be the responsibility of a select few. Instead, it will need to be built into the organization's fabric.
Don’t miss out on all the other important strategies that were discussed. Watch the webinar to learn more.