Integrated GRC systems provide an enterprise-wide view of risk without the inflexibility or siloed data of legacy technology. This second blog that forms part of our Breaking the GRC Mold series looks at how to achieve an integrated approach to risk management.
- Legacy systems hamper enterprise-wide GRC because they are inflexible, have siloed data and don’t offer a 360-degree view of risk.
- Risk strategies need to evolve and adapt in a way that focuses on the threats associated with changing regulatory and competitive environments.
- Integrated GRC creates efficiencies and saves money, as well as reveals a holistic view of enterprise risk.
To pursue an integrated risk management philosophy that is data-centric in nature, it is paramount to know where your data is stored, how to retrieve it, and most critically how to link all of your relevant data. These components ensure a more complete view of your risk profile, and deliver a better understanding of the potential impact of risks across a business.
Many firms are without a 360-degree view of risk, primarily because of limitations in legacy technology. Previous generation solutions lack flexibility and are being implemented to only address a specific regulation or risk process. Instead of providing the agility to define and automate reporting needs, users often end up producing static information of limited relevance. This approach has led to decreased engagement, work arounds outside of the system and overall frustration.
Watch video – Connected Risk, the ultimate Enterprise Risk Management platform
Understanding your risk profile in near-real time is rarely possible with outdated technology, but in today’s regulatory environment many organizations still deal with siloed data that doesn’t easily integrate with business processes.
Furthermore, organizations have difficulty seeing their full control landscape mapped against the risks they face; at both a firm-wide level or through lines-of-business. It all boils down to agility.
These systems don’t provide a comprehensive view of the risk landscape and can’t pull together disparate data to give the end user the clear insight they need.
Meeting regulatory demands
While regulations aren’t explicitly demanding firms switch to an integrated GRC approach, maintaining compliance costs effectively necessitates a robust use of technology.
As Gartner noted in its 2017 Hype Cycle For Risk Management report: “To understand the full scope of risk, organizations require a comprehensive view across all business units and risk and compliance functions, as well as key business partners, suppliers and outsourced entities. As a result, new technology solutions are emerging to increase the collaborative nature of risk management, both within and external to an organization.”
An integrated GRC platform that supports near and real-time monitoring of data and risk models offers firms a way to keep pace with the changing regulatory landscape and gain an edge on competitors who still rely on antiquated systems.
Why is integrated GRC a priority?
Many firms can neither see nor act on the risks they face — the key indicators are there, but scattered across a lake of unstructured data.
Managing risk from an enterprise level requires investing in a modern, open system, that draws upon all relevant data, reporting on what’s critical and alerting those empowered to take action.
It’s a two-way street though — risk professionals must mine this information for risks on the horizon, rather than merely relying on alerts, but again, an open system is what’s needed for this approach to be effective.
Accurate risk insight
Enter Connected Risk — more than just another GRC technology for managing risk and control taxonomies. It’s a platform that draws upon the many sources of risk information a firm may already have but, until today, had no way of bringing them together.
Connected Risk provides solutions for both the risk professional and the business leader; solutions that can be adapted by users to remain in step with ever-changing business needs and regulatory obligations.
With the speed data moves at and which it is created today, it is imperative to work with a technology partner that can help you distill important and relevant information in order to gain the most accurate risk insights.
- Part three of this series will examine what next generation GRC will look like.