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Everything You Need to Know About Governance, Risk and Compliance (GRC)

 

 

Introduction

We live in turbulent times with health challenges, war, volatile economic conditions, and an escalating climate crisis disrupting business and life. 41.8% of the people surveyed by the World Economic Forum said that they expected the world to be consistently volatile with multiple surprises over the next three years. For the corporate world, increased global volatility brings increased risks, necessitating constant vigilance, and countermeasures. More so, with the interconnectedness of cyber, geopolitical, third-party, physical, privacy, financial, and ESG risks, to name a few.

Instituting a Governance, Risk, and Compliance (GRC) strategy is the most efficient way when it comes to managing modern-day risks that are complex, interconnected, and constantly evolving. GRC helps align an organization's strategic objectives with its operations, ensuring effective risk management and compliance with regulations.

This article aims to unravel the complexities of GRC offering insights into best practices, emerging trends and the integration of technology in shaping a robust GRC strategy that your organization can use to navigate the complexities of the modern business environment with confidence.

What is GRC?

GRC stands for Governance, Risk, and Compliance (GRC). And encompasses the tools and processes used to align business strategy, evaluate threats, and adhere to regulations. 

GRC is a holistic approach to managing your organization's risks, ensuring compliance with regulations, and aligning operations with strategic goals. By implementing a comprehensive GRC program, you can improve efficiency, reduce costs, and protect your business from potential threats.

According to OCEG, GRC is defined as “the integrated collection of capabilities that enable an organization to reliably achieve objectives, address uncertainty, and act with integrity.” 
 

 


Demystifying the GRC Trifecta:

What is GRC
  • Governance: Think of it as the compass guiding your organization's ethical and transparent operations. It ensures decisions align with your strategic goals and values. 
  • Risk Management: This is your safety net, identifying and mitigating potential threats before they derail your progress and strategically using risks to your advantage. 
  • Compliance: It's playing by the rules, adhering to relevant laws and industry standards to maintain trust and avoid costly penalties.

What is a GRC Model?

A GRC model is a foundational framework that outlines and integrates the key components and processes involved in Governance, Risk, and Compliance (GRC). GRC models often leverage various software solutions and tools to automate tasks, streamline workflows, and improve data analysis.

A comprehensive GRC program includes two elements:

  • An integrated and connected strategy that helps organizations manage governance, risks, and compliance with industry standards
  • The tools and processes used to centralize, manage, and deploy a company-wide GRC solution
Components of a GRC Program

Importance of GRC for Organizations

In today's complex and ever-evolving business landscape, GRC is no longer just a buzzword – it's a fundamental necessity for organizations of all sizes and across all industries. But why is GRC so important, and how exactly does it benefit organizations? By embracing a connected GRC approach, your organization can unlock a treasure trove of benefits, including:

Improved visibility and transparency

With a holistic view of an organization's governance, risk, and compliance practices, your organization can now make better decisions and ensure transparency and accountability.

Enhanced risk management

By being able to identify and assess risks, implement controls to mitigate them, and monitor their effectiveness your organization gains better risk management practices and reduces the likelihood of potential crises.

Increased compliance

GRC ensures that an organization complies with applicable laws, regulations, and standards. This reduces the risk of non-compliance penalties, reputational damage, and legal disputes for your organization.

Better alignment of business objectives

By aligning business objectives with governance, risk management, and compliance practices, you can ensure more effective and efficient business operations and enhanced stakeholder trust.

Improved communication and collaboration

GRC provides a common language and framework for various departments and functions within an organization, facilitating better communication and collaboration. This results in more efficient and effective decision-making.

Good governance

Overall, GRC enables organizations to achieve good governance by promoting transparency, accountability, risk management, compliance, and stakeholder trust.

GRC Use Cases

GRC Use Cases

Although most organizations have initiatives designed to improve internal controls, corporate governance, and risk management, they continue to face challenges. Listed below are a few reasons why organizations are increasingly seeking more effective GRC systems. :

  • The need for effective compliance with laws, regulations, and standards applicable to the organization's operations and industry.
  • An increasing number of new and updated regulations require a robust GRC program to prepare for emerging regulations and to seamlessly adapt and absorb to changing requirements
  • An increasingly interconnected risk landscape, where a cyber risk or ESG risk in your supply chain requires more than a conventional vendor or third-party risk management
  • Managing the rising costs of compliance and risk management when approached in a siloed and disconnected manner
  • The requirement for greater visibility into the organization's activities and communication with stakeholders
  • A need to improve operational efficiency and effectiveness by streamlining processes and eliminating duplication
  • To be able to build business resilience and gain the agility to prepare for and respond to crises or unexpected events that could impact the organization's operations, reputation, or financial performance
  • To effectively build trust and confidence with stakeholders, including customers, shareholders, employees, regulators, and other third parties.

How Does GRC Work?

To understand how GRC works, imagine your organization as a high-stakes symphony, where every function plays a crucial role. Governance sets the tempo, ensuring ethical harmony. Risk management anticipates potential dissonances, identifying and mitigating threats before they disrupt the rhythm. And compliance acts as the conductor, keeping everyone aligned with industry standards and regulations. A GRC framework works in an organization to seamlessly integrates these three critical elements.

GRC works by bringing the components of governance, risk management, and compliance together to help organizations effectively manage their overall business activities. This involves implementing a structured approach to governance, risk management, and compliance that includes policies, procedures, and technologies that help to ensure compliance, identify and mitigate risks, and ensure effective decision-making.

To explain further, GRC works in three key movements:

  • Setting the Score: Clear governance policies and procedures establish the foundation, guiding ethical decision-making and aligning operations with strategic goals. Think of it as defining the musical piece the organization will perform.
  • Anticipating Discord: Proactive risk assessments identify potential threats like cyberattacks or data breaches, allowing for mitigation strategies to be implemented before they disrupt the performance. This is like the conductor identifying potential off-key notes and adjusting accordingly. 
  • Playing by the Rules: By adhering to relevant laws and industry standards, GRC ensures the organization stays compliant and avoids costly penalties. It's like following the sheet music to ensure the performance stays within the boundaries of regulations.
     

    GRC Capabilities

    GRC capabilities are the building blocks that enable organizations to implement a successful GRC program. These capabilities encompass a wide range of tools, processes, and practices that work together to achieve principled performance. This means reliably achieving objectives, addressing uncertainty, and acting with integrity. 

    Here's a breakdown of some key GRC capabilities

    GovernanceRisk ManagementCompliance
    Corporate management, which includes how relationships within the organization are structured and the organization’s hierarchy.The identification of existing and potential risks that an organization faces.Alignment and best practices around applicable regulations, conduct rules, and expectations
    Mapping the organization’s goals with individual responsibility and accountability.Risk assessment, wherein all assets and risks are inventoried and assessed for potential gaps.A means for an organization to pursue demonstrable integrity, trust, and legal compliance
    Policy management for everyday activities. As organizations grow, standardizing everyday processes is one way to ensure smooth operations.Managing risks by classifying them based on their likelihood of occurrence and potential business impact. As an extension, risks that are more likely and have a larger business impact can be prioritized for faster mitigation.Internal and external auditing and controls to comply with set standards
      Implementing security measures and protocols
      Reporting tools, metrics, and formats that ensure clean records for both internal and external compliance.

     

What is GRC Maturity?

GRC maturity refers to an organization's level of maturity in implementing and managing its governance, risk management, and compliance programs. The maturity of an organization's GRC program can be assessed through various criteria, such as:

  • the effectiveness of its policies
  • the level of automation of its GRC processes
  • the alignment of its GRC program with its business objectives
  • the awareness and training of its employees
  • the organization's ability to monitor and adapt to changes in its GRC environment

An organization with a high level of GRC maturity typically has a well-defined GRC program that is integrated into its overall business strategy and operations. It also has a proactive and agile approach to risk management, compliance, and governance that enables it to identify, assess, and respond to risks and compliance issues effectively. In contrast, an organization with a low level of GRC maturity may have an ad-hoc and reactive approach to GRC, which can lead to inefficient processes, inadequate risk management, and compliance failures.

Assessing an organization's GRC maturity can help it identify areas of improvement and develop a roadmap for enhancing its GRC program over time.

How to Access GRC Maturity?

How to Assess GRC Program Maturity

GRC maturity can be assessed through various methods, including maturity models, benchmarking against industry standards, and conducting internal assessments.

Here are some ways to help you access your organization's GRC maturity:

Identify your organization's GRC framework and processes

Determine the processes and frameworks your organization has in place to manage governance, risk, and compliance activities. This will help you assess the current state of your organization's GRC maturity.

Assess the effectiveness of your organization's GRC processes

Conduct an evaluation of your organization's GRC processes to determine their effectiveness. You can use various methods, including surveys, interviews, and audits.

Use a GRC maturity model

A GRC maturity model can help you assess your organization's GRC maturity level. You can use a standard model or develop one specific to your organization's needs.

Benchmark against industry standards

Compare your organization's GRC maturity level against industry standards and best practices. This will help you determine how your organization stacks up against its peers.

Develop a roadmap

Based on your assessment, create a roadmap for improving your organization's GRC maturity level. This should include specific actions and timelines for implementation.

Monitor and evaluate progress

Regularly monitor and evaluate your organization's progress towards improving its GRC maturity level. This will help you determine if you are on track to achieving your goals and identify areas where further improvements are needed.

What Questions to Ask Before you Choose a GRC Software Solution?

Asking the right questions before making a decision can ensure you select a GRC tool that best aligns with your unique requirements and goals. Here are some key questions to consider:

  • Does it do what it’s supposed to do?
  • Am I able to effectively identify, prioritize, mitigate, and reduce my risk with this GRC solution?
  • Is the GRC software built to scale
  • Are there integrations available? Can it work in conjunction with SharePoint, can it deliver reporting through a BI tool, can it integrate with an existing component of another GRC solution, delivering a more holistic experience?
  • Are others in my industry using this software solution successfully?
  • Can I assess my risks and mitigation plans and activities easily and comprehensively, and can I easily share reporting and analytics with my bosses and the board?
  • With that kind of visibility into my GRC program and its performance, can I refocus my energies away from worry about GRC / risks and on to more strategic and performance-oriented tasks and tactics?
  • Does it allow me to be more strategic, productive, and confident in my job?
  • Does the GRC software scale. and is it flexible enough to handle unforeseen changes in the business?
  • What happens if the business opens new operations or adds third-party engagements in different areas of the world?
  • What new challenges would there be if the business gets acquired or merges with another business?
  • Is it comprehensive enough to not need to be removed and replaced in the next five years, no matter what changes happen to the business or the risk and compliance environment?
  • Does it offer me assurances that I am not buying something I will grow out of in a short time?
  • Does it fit and is it customizable to my organization’s distinct needs, regulatory and risk environments?
  • I live in a world where I depend on multiple software solutions and have an IT team investing in more. I can’t have a solution that requires constant IT configuration and reconfiguration to fit my needs. Does it allow for do-it-yourself adaptation?
  • What is the vendor’s reputation? Is a vendor a conscientious partner, a good corporate citizen, and believes in fostering a culture of compassion, inclusion, and diversity?

Common GRC Tools

GRC tools are software applications designed to help organizations manage their compliance with regulations, policies, and standards, as well as identify and mitigate risks that could impact their operations. Some of the most common GRC tools include:

GRC Software for Compliance, Risk, Audit, and Vendor Management

These tools help organizations

  • track and manage compliance requirements across multiple regulatory bodies and industry standards
  • assist in identifying, assessing, and prioritizing risks to an organization and its assets
  • manage audit process, including planning, scheduling, executing, and reporting on audits
  • assist in managing incidents, including data breaches, security breaches, and compliance failures
  • manage and track policies and procedures, including policy creation, revision, and distribution
  • manage and monitor third-party vendors' compliance with regulatory requirements and contractual obligations
  • assist in developing, implementing, and managing business continuity plans and strategies to ensure business operations can continue in the event of a disruption or disaster

GRC Software for IT Governance, Risk, and Compliance (IT GRC) and Cyber GRC

These tools help organizations:

  • manage IT-related risks and compliance requirements, including data privacy and security regulations, and compliance with frameworks such as NIST, COSO, PCI-DSS, etc.
  • streamline the creation and management of IT policies
  • identify, assess, mitigate, and monitor IT vendor risks and manage vendor compliance
  • simplify the identification, collation, prioritization, tracking, and remediation of cyber and information security threats and vulnerabilities

GRC Software for ESG

These tools help organizations:

  • streamline all organizational requirements relating to Environmental, Social, Governance, Risk and Compliance (ESGRC), including managing ESG standards, frameworks, and disclosure requirements

Challenges of GRC Implementation

Challenges of GRC Implementation

While implementing a GRC framework, it is common for organizations to face certain challenges. Common challenges include:

Embracing change

To gain the full value of their GRC program and gain the benefit of accurate decision-making in a fast-changing business environment, businesses need to invest in a robust change management program.

Siloed Information

Traditionally, companies keep departmental functions separated, resulting in data duplication and challenges in information management. A GRC strategy will have to ensure the integration of all relevant data while prioritizing high-impact audit activities and critical tasks.

Lack of an effective GRC framework

For effective GRC implementation, a comprehensive framework should be in place to integrate GRC components with business activities to adapt to changing business environments and new regulations. Otherwise, the implementation will be fragmented and ineffective.

Organizational Integrity

GRC strategy requires everyone from the frontline workers to the management team and board of directors to foster an ethically compliant culture. Senior executives will need to lead the transformation and ensure information dissemination throughout the organization.

Communication Barriers

A truly connected GRC strategy that ensures seamless communication of information among GRC compliance teams, stakeholders, and employees is crucial for the success of GRC implementation.

How to Implement an Effective GRC Strategy?

Implementing an effective GRC strategy requires a multi-faceted approach.

Start your GRC journey with this five-step approach.

1. Establish Goals

The first step is to evaluate your organization's capabilities and determine where you stand in relation to your overall objectives. If these objectives have not yet been set, it would be wise to establish them. If you are already engaging in GRC-related activities, assess your strengths and weaknesses and identify any gaps. Once you have established the long-term vision for your GRC strategy, it becomes easier to create a roadmap for guiding the organization toward this goal.

2. Build the Right Team

With the right GRC team, organizations can strengthen their GRC approach. They can identify and evaluate potential risks, establish policies and procedures to ensure compliance with relevant laws and regulations, implement controls and processes to monitor and manage risks, and develop concrete strategies that align with business objectives.

3. Leverage GRC Technology

The appropriate technology can help you continuously monitor and manage risks with minimal oversight. A connected GRC solution can provide several benefits, such as reducing time and effort through automation, integrating systems to provide a comprehensive view of risks, offering insights through data analytics, and enabling better collaboration among team members.

4. Continuously Improve

Like training for a marathon, we must systematically put systems and processes in place and progressively scale objectives. It is also beneficial to quantify the value achieved at each stage before proceeding to the next step. These achievable and digestible stages help ensure the process is well-planned, effectively implemented, and continuously improved.

5. Anticipate Change

The world is constantly changing, and the threat landscape is always evolving. Organizations today must be prepared to face pandemics, wars, inflation, economic stress, strain, and recession. Understanding the ever-evolving nature of risks is critical because only then can organizations reach the aspirational stage of achieving agile and cognitive GRC.

Five-Step Approach for an Effective GRC Strategy

What are the Essential Tips in Implementing GRC?

Here are some essential tips for implementing an effective GRC program:

  • Define your program objectives, timelines, and success measures. 
  • Implement the most critical elements first and build on successes. Communicate broadly across the organization (as well as to partners and third parties), and extend your GRC practices and expectations across locations, teams, subsidiaries, partners, and third parties. 
  • Identify key early adopters in the business (by team/division/location/role) that can champion the solution, celebrate accomplishments and wins, and drive employee awareness and engagement. 
  • Keep detailed records, maintain due diligence, and adapt the program as reporting, analytics, and analysis dictate. It is sure to change over time as the business grows or changes. And accessible records on GRC program structure, activities, and efforts are essential for audits, investigations, and potential enforcement activity. 
  • Recognize that a GRC program is dynamic – a living program – that must be nurtured, adapted, delivered, and adjusted consistently and constantly.

How Can MetricStream Help with GRC?

MetricStream’s ConnectedGRC products help you strategically manage risk in the interconnected risk landscape with an integrated and holistic approach to GRC. Designed with advanced analytics and AI capabilities at the core, it enables businesses to proactively identify, assess, manage, and mitigate various risks.

  • BusinessGRC connects across risk, audit, and compliance to bring insights that can be used to build resilience and as a strategic competitive advantage.
  • CyberGRC ensures active cyber risk and compliance management through improved visibility and a comprehensive IT and cyber risk and compliance framework aligned with recognized security standards.
  • ESGRC streamlines and automates ESG risk assessment, management, and monitoring across the enterprise and third-party ecosystem, while also simplifying ESG compliance and disclosures.

We live in turbulent times with health challenges, war, volatile economic conditions, and an escalating climate crisis disrupting business and life. 41.8% of the people surveyed by the World Economic Forum said that they expected the world to be consistently volatile with multiple surprises over the next three years. For the corporate world, increased global volatility brings increased risks, necessitating constant vigilance, and countermeasures. More so, with the interconnectedness of cyber, geopolitical, third-party, physical, privacy, financial, and ESG risks, to name a few.

Instituting a Governance, Risk, and Compliance (GRC) strategy is the most efficient way when it comes to managing modern-day risks that are complex, interconnected, and constantly evolving. GRC helps align an organization's strategic objectives with its operations, ensuring effective risk management and compliance with regulations.

This article aims to unravel the complexities of GRC offering insights into best practices, emerging trends and the integration of technology in shaping a robust GRC strategy that your organization can use to navigate the complexities of the modern business environment with confidence.

GRC stands for Governance, Risk, and Compliance (GRC). And encompasses the tools and processes used to align business strategy, evaluate threats, and adhere to regulations. 

GRC is a holistic approach to managing your organization's risks, ensuring compliance with regulations, and aligning operations with strategic goals. By implementing a comprehensive GRC program, you can improve efficiency, reduce costs, and protect your business from potential threats.

According to OCEG, GRC is defined as “the integrated collection of capabilities that enable an organization to reliably achieve objectives, address uncertainty, and act with integrity.” 
 

 


Demystifying the GRC Trifecta:

What is GRC
  • Governance: Think of it as the compass guiding your organization's ethical and transparent operations. It ensures decisions align with your strategic goals and values. 
  • Risk Management: This is your safety net, identifying and mitigating potential threats before they derail your progress and strategically using risks to your advantage. 
  • Compliance: It's playing by the rules, adhering to relevant laws and industry standards to maintain trust and avoid costly penalties.

What is a GRC Model?

A GRC model is a foundational framework that outlines and integrates the key components and processes involved in Governance, Risk, and Compliance (GRC). GRC models often leverage various software solutions and tools to automate tasks, streamline workflows, and improve data analysis.

A comprehensive GRC program includes two elements:

  • An integrated and connected strategy that helps organizations manage governance, risks, and compliance with industry standards
  • The tools and processes used to centralize, manage, and deploy a company-wide GRC solution
Components of a GRC Program

In today's complex and ever-evolving business landscape, GRC is no longer just a buzzword – it's a fundamental necessity for organizations of all sizes and across all industries. But why is GRC so important, and how exactly does it benefit organizations? By embracing a connected GRC approach, your organization can unlock a treasure trove of benefits, including:

Improved visibility and transparency

With a holistic view of an organization's governance, risk, and compliance practices, your organization can now make better decisions and ensure transparency and accountability.

Enhanced risk management

By being able to identify and assess risks, implement controls to mitigate them, and monitor their effectiveness your organization gains better risk management practices and reduces the likelihood of potential crises.

Increased compliance

GRC ensures that an organization complies with applicable laws, regulations, and standards. This reduces the risk of non-compliance penalties, reputational damage, and legal disputes for your organization.

Better alignment of business objectives

By aligning business objectives with governance, risk management, and compliance practices, you can ensure more effective and efficient business operations and enhanced stakeholder trust.

Improved communication and collaboration

GRC provides a common language and framework for various departments and functions within an organization, facilitating better communication and collaboration. This results in more efficient and effective decision-making.

Good governance

Overall, GRC enables organizations to achieve good governance by promoting transparency, accountability, risk management, compliance, and stakeholder trust.

GRC Use Cases

Although most organizations have initiatives designed to improve internal controls, corporate governance, and risk management, they continue to face challenges. Listed below are a few reasons why organizations are increasingly seeking more effective GRC systems. :

  • The need for effective compliance with laws, regulations, and standards applicable to the organization's operations and industry.
  • An increasing number of new and updated regulations require a robust GRC program to prepare for emerging regulations and to seamlessly adapt and absorb to changing requirements
  • An increasingly interconnected risk landscape, where a cyber risk or ESG risk in your supply chain requires more than a conventional vendor or third-party risk management
  • Managing the rising costs of compliance and risk management when approached in a siloed and disconnected manner
  • The requirement for greater visibility into the organization's activities and communication with stakeholders
  • A need to improve operational efficiency and effectiveness by streamlining processes and eliminating duplication
  • To be able to build business resilience and gain the agility to prepare for and respond to crises or unexpected events that could impact the organization's operations, reputation, or financial performance
  • To effectively build trust and confidence with stakeholders, including customers, shareholders, employees, regulators, and other third parties.

To understand how GRC works, imagine your organization as a high-stakes symphony, where every function plays a crucial role. Governance sets the tempo, ensuring ethical harmony. Risk management anticipates potential dissonances, identifying and mitigating threats before they disrupt the rhythm. And compliance acts as the conductor, keeping everyone aligned with industry standards and regulations. A GRC framework works in an organization to seamlessly integrates these three critical elements.

GRC works by bringing the components of governance, risk management, and compliance together to help organizations effectively manage their overall business activities. This involves implementing a structured approach to governance, risk management, and compliance that includes policies, procedures, and technologies that help to ensure compliance, identify and mitigate risks, and ensure effective decision-making.

To explain further, GRC works in three key movements:

  • Setting the Score: Clear governance policies and procedures establish the foundation, guiding ethical decision-making and aligning operations with strategic goals. Think of it as defining the musical piece the organization will perform.
  • Anticipating Discord: Proactive risk assessments identify potential threats like cyberattacks or data breaches, allowing for mitigation strategies to be implemented before they disrupt the performance. This is like the conductor identifying potential off-key notes and adjusting accordingly. 
  • Playing by the Rules: By adhering to relevant laws and industry standards, GRC ensures the organization stays compliant and avoids costly penalties. It's like following the sheet music to ensure the performance stays within the boundaries of regulations.
     

    GRC Capabilities

    GRC capabilities are the building blocks that enable organizations to implement a successful GRC program. These capabilities encompass a wide range of tools, processes, and practices that work together to achieve principled performance. This means reliably achieving objectives, addressing uncertainty, and acting with integrity. 

    Here's a breakdown of some key GRC capabilities

    GovernanceRisk ManagementCompliance
    Corporate management, which includes how relationships within the organization are structured and the organization’s hierarchy.The identification of existing and potential risks that an organization faces.Alignment and best practices around applicable regulations, conduct rules, and expectations
    Mapping the organization’s goals with individual responsibility and accountability.Risk assessment, wherein all assets and risks are inventoried and assessed for potential gaps.A means for an organization to pursue demonstrable integrity, trust, and legal compliance
    Policy management for everyday activities. As organizations grow, standardizing everyday processes is one way to ensure smooth operations.Managing risks by classifying them based on their likelihood of occurrence and potential business impact. As an extension, risks that are more likely and have a larger business impact can be prioritized for faster mitigation.Internal and external auditing and controls to comply with set standards
      Implementing security measures and protocols
      Reporting tools, metrics, and formats that ensure clean records for both internal and external compliance.

     

GRC maturity refers to an organization's level of maturity in implementing and managing its governance, risk management, and compliance programs. The maturity of an organization's GRC program can be assessed through various criteria, such as:

  • the effectiveness of its policies
  • the level of automation of its GRC processes
  • the alignment of its GRC program with its business objectives
  • the awareness and training of its employees
  • the organization's ability to monitor and adapt to changes in its GRC environment

An organization with a high level of GRC maturity typically has a well-defined GRC program that is integrated into its overall business strategy and operations. It also has a proactive and agile approach to risk management, compliance, and governance that enables it to identify, assess, and respond to risks and compliance issues effectively. In contrast, an organization with a low level of GRC maturity may have an ad-hoc and reactive approach to GRC, which can lead to inefficient processes, inadequate risk management, and compliance failures.

Assessing an organization's GRC maturity can help it identify areas of improvement and develop a roadmap for enhancing its GRC program over time.

How to Access GRC Maturity?

How to Assess GRC Program Maturity

GRC maturity can be assessed through various methods, including maturity models, benchmarking against industry standards, and conducting internal assessments.

Here are some ways to help you access your organization's GRC maturity:

Identify your organization's GRC framework and processes

Determine the processes and frameworks your organization has in place to manage governance, risk, and compliance activities. This will help you assess the current state of your organization's GRC maturity.

Assess the effectiveness of your organization's GRC processes

Conduct an evaluation of your organization's GRC processes to determine their effectiveness. You can use various methods, including surveys, interviews, and audits.

Use a GRC maturity model

A GRC maturity model can help you assess your organization's GRC maturity level. You can use a standard model or develop one specific to your organization's needs.

Benchmark against industry standards

Compare your organization's GRC maturity level against industry standards and best practices. This will help you determine how your organization stacks up against its peers.

Develop a roadmap

Based on your assessment, create a roadmap for improving your organization's GRC maturity level. This should include specific actions and timelines for implementation.

Monitor and evaluate progress

Regularly monitor and evaluate your organization's progress towards improving its GRC maturity level. This will help you determine if you are on track to achieving your goals and identify areas where further improvements are needed.

Asking the right questions before making a decision can ensure you select a GRC tool that best aligns with your unique requirements and goals. Here are some key questions to consider:

  • Does it do what it’s supposed to do?
  • Am I able to effectively identify, prioritize, mitigate, and reduce my risk with this GRC solution?
  • Is the GRC software built to scale
  • Are there integrations available? Can it work in conjunction with SharePoint, can it deliver reporting through a BI tool, can it integrate with an existing component of another GRC solution, delivering a more holistic experience?
  • Are others in my industry using this software solution successfully?
  • Can I assess my risks and mitigation plans and activities easily and comprehensively, and can I easily share reporting and analytics with my bosses and the board?
  • With that kind of visibility into my GRC program and its performance, can I refocus my energies away from worry about GRC / risks and on to more strategic and performance-oriented tasks and tactics?
  • Does it allow me to be more strategic, productive, and confident in my job?
  • Does the GRC software scale. and is it flexible enough to handle unforeseen changes in the business?
  • What happens if the business opens new operations or adds third-party engagements in different areas of the world?
  • What new challenges would there be if the business gets acquired or merges with another business?
  • Is it comprehensive enough to not need to be removed and replaced in the next five years, no matter what changes happen to the business or the risk and compliance environment?
  • Does it offer me assurances that I am not buying something I will grow out of in a short time?
  • Does it fit and is it customizable to my organization’s distinct needs, regulatory and risk environments?
  • I live in a world where I depend on multiple software solutions and have an IT team investing in more. I can’t have a solution that requires constant IT configuration and reconfiguration to fit my needs. Does it allow for do-it-yourself adaptation?
  • What is the vendor’s reputation? Is a vendor a conscientious partner, a good corporate citizen, and believes in fostering a culture of compassion, inclusion, and diversity?

GRC tools are software applications designed to help organizations manage their compliance with regulations, policies, and standards, as well as identify and mitigate risks that could impact their operations. Some of the most common GRC tools include:

GRC Software for Compliance, Risk, Audit, and Vendor Management

These tools help organizations

  • track and manage compliance requirements across multiple regulatory bodies and industry standards
  • assist in identifying, assessing, and prioritizing risks to an organization and its assets
  • manage audit process, including planning, scheduling, executing, and reporting on audits
  • assist in managing incidents, including data breaches, security breaches, and compliance failures
  • manage and track policies and procedures, including policy creation, revision, and distribution
  • manage and monitor third-party vendors' compliance with regulatory requirements and contractual obligations
  • assist in developing, implementing, and managing business continuity plans and strategies to ensure business operations can continue in the event of a disruption or disaster

GRC Software for IT Governance, Risk, and Compliance (IT GRC) and Cyber GRC

These tools help organizations:

  • manage IT-related risks and compliance requirements, including data privacy and security regulations, and compliance with frameworks such as NIST, COSO, PCI-DSS, etc.
  • streamline the creation and management of IT policies
  • identify, assess, mitigate, and monitor IT vendor risks and manage vendor compliance
  • simplify the identification, collation, prioritization, tracking, and remediation of cyber and information security threats and vulnerabilities

GRC Software for ESG

These tools help organizations:

  • streamline all organizational requirements relating to Environmental, Social, Governance, Risk and Compliance (ESGRC), including managing ESG standards, frameworks, and disclosure requirements
Challenges of GRC Implementation

While implementing a GRC framework, it is common for organizations to face certain challenges. Common challenges include:

Embracing change

To gain the full value of their GRC program and gain the benefit of accurate decision-making in a fast-changing business environment, businesses need to invest in a robust change management program.

Siloed Information

Traditionally, companies keep departmental functions separated, resulting in data duplication and challenges in information management. A GRC strategy will have to ensure the integration of all relevant data while prioritizing high-impact audit activities and critical tasks.

Lack of an effective GRC framework

For effective GRC implementation, a comprehensive framework should be in place to integrate GRC components with business activities to adapt to changing business environments and new regulations. Otherwise, the implementation will be fragmented and ineffective.

Organizational Integrity

GRC strategy requires everyone from the frontline workers to the management team and board of directors to foster an ethically compliant culture. Senior executives will need to lead the transformation and ensure information dissemination throughout the organization.

Communication Barriers

A truly connected GRC strategy that ensures seamless communication of information among GRC compliance teams, stakeholders, and employees is crucial for the success of GRC implementation.

Implementing an effective GRC strategy requires a multi-faceted approach.

Start your GRC journey with this five-step approach.

1. Establish Goals

The first step is to evaluate your organization's capabilities and determine where you stand in relation to your overall objectives. If these objectives have not yet been set, it would be wise to establish them. If you are already engaging in GRC-related activities, assess your strengths and weaknesses and identify any gaps. Once you have established the long-term vision for your GRC strategy, it becomes easier to create a roadmap for guiding the organization toward this goal.

2. Build the Right Team

With the right GRC team, organizations can strengthen their GRC approach. They can identify and evaluate potential risks, establish policies and procedures to ensure compliance with relevant laws and regulations, implement controls and processes to monitor and manage risks, and develop concrete strategies that align with business objectives.

3. Leverage GRC Technology

The appropriate technology can help you continuously monitor and manage risks with minimal oversight. A connected GRC solution can provide several benefits, such as reducing time and effort through automation, integrating systems to provide a comprehensive view of risks, offering insights through data analytics, and enabling better collaboration among team members.

4. Continuously Improve

Like training for a marathon, we must systematically put systems and processes in place and progressively scale objectives. It is also beneficial to quantify the value achieved at each stage before proceeding to the next step. These achievable and digestible stages help ensure the process is well-planned, effectively implemented, and continuously improved.

5. Anticipate Change

The world is constantly changing, and the threat landscape is always evolving. Organizations today must be prepared to face pandemics, wars, inflation, economic stress, strain, and recession. Understanding the ever-evolving nature of risks is critical because only then can organizations reach the aspirational stage of achieving agile and cognitive GRC.

Five-Step Approach for an Effective GRC Strategy

Here are some essential tips for implementing an effective GRC program:

  • Define your program objectives, timelines, and success measures. 
  • Implement the most critical elements first and build on successes. Communicate broadly across the organization (as well as to partners and third parties), and extend your GRC practices and expectations across locations, teams, subsidiaries, partners, and third parties. 
  • Identify key early adopters in the business (by team/division/location/role) that can champion the solution, celebrate accomplishments and wins, and drive employee awareness and engagement. 
  • Keep detailed records, maintain due diligence, and adapt the program as reporting, analytics, and analysis dictate. It is sure to change over time as the business grows or changes. And accessible records on GRC program structure, activities, and efforts are essential for audits, investigations, and potential enforcement activity. 
  • Recognize that a GRC program is dynamic – a living program – that must be nurtured, adapted, delivered, and adjusted consistently and constantly.

MetricStream’s ConnectedGRC products help you strategically manage risk in the interconnected risk landscape with an integrated and holistic approach to GRC. Designed with advanced analytics and AI capabilities at the core, it enables businesses to proactively identify, assess, manage, and mitigate various risks.

  • BusinessGRC connects across risk, audit, and compliance to bring insights that can be used to build resilience and as a strategic competitive advantage.
  • CyberGRC ensures active cyber risk and compliance management through improved visibility and a comprehensive IT and cyber risk and compliance framework aligned with recognized security standards.
  • ESGRC streamlines and automates ESG risk assessment, management, and monitoring across the enterprise and third-party ecosystem, while also simplifying ESG compliance and disclosures.
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