Increasingly, companies of all sizes and in all industries are actively addressing issues of governance, risk management, and compliance (GRC). With a company’s reputation in the balance and potentially-hefty fines and penalties at stake, it should come as no surprise that business leaders are paying greater attention to these important issues.
GRC can impact virtually every aspect of a company’s operations. Subsequently, these concepts are now widely viewed as a vital component of a robust business strategy. But governance, risk management, and compliance factors bring many complexities, from understanding the actual concepts and how they impact a business, to GRC strategy development, selection of a GRC software platform and tools, along with actively implementing changes that will promote compliance.
The complex nature of governance, risk management, and compliance, with its comprehensive impact on a company, leads many business leaders to wonder, “When should I start looking for GRC companies?” There are a few signs that will signal that it’s time to seek help from the experts such as GRC consultants and companies dealing in GRC software solutions.
Look for a GRC Compan8 When You Realize You’re Vulnerable
If you are especially vulnerable to fines and penalties arising from non-compliance, GRC really ought to be actively addressed. For a business that is subject to regulatory oversight in any form, now is the perfect time to connect with a GRC company. The same is true for businesses that are subject to lots of legalities.
Putting this point to work with an example, a company may begin doing business in a nation that is part of the European Union (EU). As a result, this organization would need to consider new vulnerabilities associated with General Data Protection Regulation (GDPR). GDPR applies to any organization that does business with an EU citizen and the potential fines and penalties are tremendous: $20 million or 4% of the company’s worldwide turnover for the prior fiscal year — whichever happens to be higher. This new vulnerability could certainly justify the development of a GRC strategy, along with the implementation of GRC software.
What’s more, the measures required to achieve GDPR compliance may be easily expanded or augmented to achieve compliance in other areas. A GRC consultant can guide a company as it considers all of its compliance requirements as a whole under the umbrella of GRC.
Seeking a GRC Company to Aid in the Strategy Development Process
A well-considered GRC strategy is essential, yet devising a good approach can be extremely difficult because GRC affects virtually every aspect of a business and its operations. This becomes clear when you break down the three components.
- Governance refers to the management and oversight of business operations, with an eye toward compliance.
- Risk management refers to the act of monitoring and addressing situations or activities that threaten a company, its operations, its reputation, its profitability, and its compliance with laws and regulations.
- Compliance refers to the creation of strategies that can be used to mitigate risk and achieve compliance with all laws and regulations.
With such a potentially-broad impact on an organization, these three GRC components must be considered as you periodically revisit your business strategies. This allows a company to integrate GRC-friendly policies and procedures that support compliance at every level.
It is also prudent to develop a stand-alone GRC strategy that provides an opportunity to implement additional measures to minimize risk and promote compliance. A GRC company will have the tools and the consulting resources required to guide the strategy creation and implementation process.
Hiring a GRC Company to Help With GRC Software Implementation
If you realize that you lack the technology to maintain — or prove — GRC compliance, it’s time to seek help. A GRC company can guide an organization through the process of choosing the best GRC software platform for their needs, right through implementation and deployment.
Each company is subject to different forms of regulatory oversight. And there is no shortage of rules and regulations. Annually, the world’s 900-plus legal and regulatory bodies issue over 55,000 alerts to announce regulatory changes or the creation of new laws and regulations. It’s an understatement to say that the GRC landscape is complex and there comes a time when GRC software is really essential for achieving and maintaining compliance. Not only does GRC software centralize your data in a manner that promotes compliance, but you’ll also gain access to valuable tools such as analytics and alerts. Perhaps the most useful GRC software feature involves data auditing and reporting — two functionalities that are essential for proving compliance.
There is no shortage of options in the realm of GRC software and an experienced consultant can help guide a business down a path toward the best platform for their needs. But beyond this, it is common to encounter obstacles during the implementation and deployment process. A GRC software platform typically integrates with many other enterprise software systems and data sources. This makes for a complex configuration and implementation process that can benefit from a seasoned guide.
Hire a GRC Company When You Realize You Need a Custom GRC Solution
There are literally hundreds of GRC software solutions and tools available, but there are some cases where an organization finds that they have needs that just aren’t addressed by the available options. This is what prompts many companies to seek a custom GRC software solution. A GRC company can provide more than just development services; they can also provide consulting solutions to evaluate the organization’s needs in a thorough, holistic manner. This will ensure that your custom solution is architected in a way that addresses all of your needs — needs that you may not have fully appreciated before you consulted with an expert on the matter.
A top GRC company can deliver the resources and software that a company needs to minimize their risk and maintain compliance. At iTech, our GRC experts provide clients with the right governance, risk management, and compliance solutions for their enterprise needs. Contact iTech today to discuss your company and its compliance landscape.