GRC is an important part of any business because it helps you mitigate risks and stay compliant with the law. A solid foundation gives you the stability and guidelines that enable you to progress your GRC strategy. This means your departments are working together towards the same goal and meeting organizational objectives as well.
GRC frameworks can be a good investment, but they come with significant time and monetary commitments. There are many variables in terms of the cost of different GRC frameworks and how long it will take to set them up.
This article talks about some best practices that you can use to create a successful GRC framework and make sure it’s compatible with all departments in your company.
What is Governance, Risk, and Compliance (GRC)?
Governance, Risk and Compliance is typically a strategy that applies to an entire organization. Governance deals with how the organization is operated, Risk and Compliance manages risks in the system and maintains compliance.
Knowledge and expertise is essential for any organization. Strategy, policy and performance need to be monitored for success. It is tough but programs that are successful can be identified with some persistence.
The components of governance are:
- Corporate Management Experts
- Business management strategy
- Policy Management
The identification and classification of risk are critical when considering organizational activities. Identify what the organization is exposing itself to and act to either remove or disarm the hazard
When people think about risk, there are really 3 main components:
- Identifying risks
- Assessment risks
- Management Risk
Compliance is very important to organizations. Without it, they could face a range of different legal and regulatory complications.
Compliance can be split into two major categories:
- Internal and external audits are an essential part of an organization’s compliance strategy.
- One might want to consider doing research
- Ensuring security
- Reporting has never been easier.
To ensure good governance, company departments and teams should work together in coordination during difficulties.
- Risk and compliance
- Internal audit
- Senior management team
- Board members
How to Implement a GRC Framework
There are a lot of potential ways to improve your GRC program and these are just some of them. In this article, you’ll find 8 tips that will help you set up a successful GRC framework for any company.
1. Find out the benefits of implementing a GRC platform
When starting a GRC implementation, you need to realize the importance of understanding the current GRC strategies and then, identify which ones are working. This way – you will be able to build on these successes when establishing your company’s unified system.
Similarly, using an AI helper to consolidate your data and assets can reduce or even eliminate the need for duplicates. You can also remove unnecessary technologies.
From here, you can prioritize the most profitable assets of your organization and focus on enhancing these in your GRC strategy
2. Create a GRC Project Roadmap
To decide what should be included in your GRC framework, you need to think about the main goals it should have. The outcomes of a good compliance framework should be the result of collaboration between all stakeholders. The potential benefits that can come from this should help guide the desired outcome.
Here are the benefits of a good GRC strategy:
- Better alignment between different departments and department goals
- We provide risk management solutions to companies who take on a multitude of risks. These include financial, legal, strategic and more. We also offer cybersecurity for businesses.
- Artificial intelligence is already being used to help expedite decision-making and make things easier in terms of the process.
3. Perform a Gap Analysis
You need to make a list of your existing GRC process and determine what is:
- Your business process maturity
- Data has always been a key element of street design.
- There are some major operational gaps
Important factors to consider include:
- Identifying any missing or duplicate data
- Identifying any duplicate or redundant processes
- Ensuring all possible processes to automate and reviewing them for any potential
4. Determine and Align Stakeholder Expectations
While it might seem like an overlooked part of a GRC project, getting the entire organization on the same page with implementing your GRC strategy is crucial. A well-planned GRC project involves all departments, and key stakeholders should have enough opportunity to voice their opinions.
There are two main ways to achieve organizational alignment:
- Aligning executive team members with vital factors, The first step to gaining organizational approval is understanding the organization’s budget & timelines. Finding out what they want and making changes accordingly lets them know that you are serious about your plan.
- Adopting a top-down approach. Once you have executive approval, you will need to implement a change management process for all other business units that is realistic and communicated clearly. For example, you may have expected there to be some resistance to the changes you propose. There is a deep-seated tradition with old processes and procedures that need a new approach over some time in order not to upset employees.
To help your transition, you should announce these changes to teams regularly and make an effort to understand their needs. You can also provide a space for team members to share their thoughts on the changes.
5. Establish a Robust GRC Strategy Foundation
One important underpinning of a compliant GRC system is having an adaptable, practical framework. These make IT compliance more necessary than ever these days – with cyber-threats always evolving and data breaches never going away.
Financial institutes and health organizations need to ensure proper GRC strategies are in effect due to the frequency of regulatory change.
6. Partner with a GRC Solution Provider
Implementing a GRC program from scratch can be tough, with many challenging moving parts. You need to consolidate your data to avoid information silos, update it on a regular basis and make sure any processes that involve humans are kept up-to-date using manual work such as spreadsheets. A GRC platform can streamline many of the issues, saving you time and effort. You can then focus on more important tasks in your implementation strategy.
With any third-party vendor, you must carry out due diligence and make sure they meet compliance requirements to avoid putting your organization at risk.
Investing in GRC technology can be worthwhile if you’re looking to save costs on cost or cut down on time.
The following questions should be taken into account:
- Is it easy to use/user-friendly?
- Does it use fully-automated workflows?
- Does it allow for customization? E.g., custom reporting
- Is it scalable?
- How detailed is its task performance?
- Can it integrate with other third-party software?
- Is it priced within your allocated budget?
7. Standardize Your GRC Strategy
One of the main features of a GRC strategy, like any other tool, is that it needs to be equipped for the specific requirements of each department. At the same time though there should be a baseline that can inform all aspects of your work. In order to make it easy to regulate what could go wrong, you should look into industry standards for how you control your information. For example, NIST 800-53 or ISO 27001 might work for your company.
8. Manage and Revise Your GRC Strategy
Launching your new GRC program is not a set-and-forget endeavor and should be monitored closely to ensure it can grow with the changing needs of your organization
All teams should have documented GRC requirements and have each one dated, noting any key changes that happen such as when new technologies are introduced. Each team should sign off on these requirements annually and in turn keep them updated.
Thanks to this reporting, you can use the information from your audits to stay aligned with strategy during your stakeholder meetings. The audit should be done at least once a year and will help make sure you’re maintaining compliance management guidelines.