Next generation GRC systems are producing insight from fragmented data and creating opportunities in a changing regulatory landscape. The final part of our Breaking the GRC Mold series explores the optimal risk management system.
- Gaps in visibility caused by fragmented data, processes, and tools used in risk decision-making are driving demand for next generation Governance, Risk and Compliance (GRC) systems.
- The optimal GRC system should be able to keep pace with rapid change, utilize an open architecture, and have an interface that is intuitive and easy-to-use.
- Connected Risk, our next generation GRC system, makes it possible to absorb ever-increasing volumes of data in a constantly changing regulatory landscape.
In the first two parts of our Breaking the GRC Mold blog series, we discussed the regulatory and market trends driving the need for an integrated risk platform, as well as the limitations to the current approaches of handling governance, risk and compliance.
Now we turn our attention to what an integrated, next generation GRC program looks like.
Monitoring and managing risk in today’s regulatory landscape is becoming increasingly difficult for global organizations. With the rapid speed at which data and information moves in a digital world, and the pace at which new and complex data arises, firms need to have an enterprise-wide view of risk.
However, achieving this 360-degree view of risk is challenging with many of the legacy technology systems currently in use. This is partly due to these systems being outdated, and not originally designed with the evolution of business in mind.
Increased regulatory scrutiny
Organizations with global client and partner relationships will naturally have a more intricate and complex risk profile, and at times may struggle to manage risk on all necessary fronts. This is especially true as more firms expand their global footprint and encounter more jurisdictional regulations, which necessitates shifting business strategies and processes.
Meanwhile, the explosion of data and increased regulatory pressure has exposed gaps in organizations that are reliant on outdated systems to manage large volumes of information.
This information is often trapped in silos, which doesn’t offer a complete view of the risks impacting their business. It also doesn’t provide insight into valuable connections that can be made with unstructured data.
Statutes such as the UK Senior Managers and Certification Regime, as well as increased attention from regulators in the U.S and elsewhere, means regulators around the globe are scrutinizing compliance, risk and audit officers more closely than ever. Compliance breaches and reporting failures can lead to senior executives being held personally liable with large fines and their reputation at risk; in some cases also open to prosecution.
Next generation GRC technology
These, amongst many other factors, are why organizations need a modern GRC technology architecture; one that can handle the demands and speed at which today’s advanced businesses move and that the regulatory landscape necessitates.
According to a recent Celent report, there are still many gaps in risk visibility as organizations rely on fragmented data, processes, and tools to inform risk decision-making.
This is driving the need for new GRC systems that can help financial institutions expedite and better automate complex regulatory reporting requirements, as well as helping to better manage third party risk.
But what are some of the things to consider before making an investment in a new GRC system? The optimal GRC system should have the following components:
- Flexibility. Processes, business relationships and operations are in a constant state of flux. Working with a system that provides flexibility in data models, workflows, dashboards, reporting, and security allows you to keep pace with rapid change in regulatory demands now and in the future.
- Open. Utilizing an open architecture is critical for data interchange, as is integration with reporting tools. Using standalone systems no longer adequately works; firms need to know their risk exposure and how each risk interrelates in the wider risk ecosystem.
- Superior. A next generation user interface (UI) that is intuitive and easy-to-use. Simplicity is crucial with already complex processes, and implementing a system with customizable dashboards that generates reports based on specific business requirements enables teams to get the most value out of their next generation GRC technology.
These factors are at the core of Connected Risk, our best-of-breed governance and compliance software platform. This platform makes it possible for you to absorb ever-increasing volumes of data with standardized, tailorable process automation — all achieved through the deployment of interoperable, connected solutions.
Our Connected Risk platform is built with the modern enterprise GRC needs in mind, while also retaining the flexibility to adapt to any of your current and future business needs. The customizable approach of the platform enables teams to reduce the need for external support during deployment or post go-live if using our out-of-the box offering.
Gaining insight from data
The speed with which data moves today makes it harder than ever to get a reliable, holistic, enterprise-wide view of risk.
Data is being created at an increasing rate, and if organizations don’t have robust technology to properly structure their data it makes it difficult for them to glean insights to make strategic decisions with greater precision. This could leave firms at a competitive disadvantage, and heightens the risk of potentially running afoul with regulators.
With siloed data that doesn’t “talk” and archaic systems that can’t process and analyze information fast enough, firms risk falling behind. But with an integrated GRC platform, you can turn mountains of data into insight and information, creating opportunities, and ensuring compliance with regulators’ increasing demands.
This will set-up your organization to succeed not only today, but also gives you the ability to adapt to future demands in a constantly changing business environment.