In an evolving business landscape, companies increasingly focus on strengthening internal control and corporate governance.
As a result, organizations require effective mechanisms which help achieve regulatory compliance and manage stakeholder demand. With a unified enterprise governance, risk and compliance (GRC) framework, firms can integrate and orchestrate key processes to increase reliability and reputation, while capturing opportunities and mitigating uncertainty.
GRC should be looked at as a strategic discipline, rooted in organizational culture.
Moving away from silos
Traditionally, businesses have responded to governance and regulatory requirements by assigning a dedicated compliance team to each new directive. These teams operate in silos where efforts are segregated.
This fragmented compliance blueprint leads to a lack of GRC visibility as well as investment replication in technology, staffing and training. To break down these silos, an internal GRC competency center is necessary, offering a pan-enterprise view of control and risk. Of course, senior executive endorsement, smart process management and a clearly outlined roadmap is integral to its implementation.
The route to an integrated and forward-thinking approach
Effective cost intervention is the primary force behind GRC convergence initiatives. When functional groups work in tandem with a combination of tools and practices, common languages and software for assessment and reporting across the firm, GRC integration can be actioned.
The approach reduces operational costs, increases customer confidence and enhances business performance. At the onset, organizations should develop a training plan and aim at building awareness of the GRC culture.
The initiation phase should be followed by a common naming convention and a common language which improves reporting and ensures comprehensive GRC coverage across the enterprise. With a standardized naming convention, assurance professionals across disciplines can now share relevant information.
Putting processes in place for robust implementation
For a unified GRC, it is important to attribute a single definition to the process context which is designed to address stakeholders’ and GRC group needs. Tangible outcomes would require a uniform process structure across planning, reporting and allocating resources. Consequently, organizations can now deploy a single system of record for assurance information. This singular model will ensure harmony in issue resolution and risk management across GRC groups.
Thresholds will be defined beyond which risks will require immediate attention and redressal.
Four enablers must be kept in mind to achieve successful execution of the unified GRC model:
- Revisiting and redefining values and objectives: For an effective GRC program, a holistic approach is required which regards GRC activities as a continuum, seamlessly intertwined with the organizational fabric. Companies can now glean a complete understanding of corporate objectives and establish an effective governance structure. Meanwhile, one must identify the key factors that lie at the core of GRC program and determine major perils to the firm’s strategic vision.
- Understanding maturity level of the existing GRC program: An organization can bolster its GRC discipline by ascertaining the maturity level of the prevailing GRC program. There can be four states of maturity which include: fragmented, implemented, embedded and enhanced.
- Bridging the gap between the “as is” model and the model “to be”: Adopting the “fit gap analysis methodology” through HCL’s BRiCSTM (Business Risk Intelligence and Compliance Solution) provides a 360 degree view of GRC convergence. It addresses the challenges which emerge with risk and compliance while translating them into opportunities enhancing governance and performance. Gap analysis facilitates better compliance levels, risk containment at lower costs, higher accuracy standards and bolstered efficiency – above and beyond the traditional siloed approach.
- Automating the effective unified GRC program: The final enabler is automation. Automation is at the fulcrum of the integrated approach. It standardizes key terms, allows real-time control, and stores control policies in a central repository. Real-time dashboards make management reports accessible, while robotics reduces human intervention for data collection and analysis. Automation platforms not only improve the quality of results but also ensure process consistency and an overall program maturity.
HCL’s future-proof approach
HCL’s GRC services have been designed to help organizations identify, decipher, and manage the relationship between compliance and risk and enable a streamlined governance structure.
We conduct an up-front analysis and adopt a holistic approach. Goal or target assessment is followed by a strategy roadmap aligned to the company’s vision. We also consider the company’s priorities, action selected GRC applications, and make recommendations for significant improvements.
Our GRC framework is crafted to embed future progression, propelling businesses forward.
As mentioned earlier, HCL’s BRiCSTM solution helps drive the GRC operating model. By addressing challenges or gaps, if any, firms can now navigate the complex and inter-linked territory of risk and compliance. This organization-specific framework, incorporates discipline in business activities.
Modern organizations can now leverage BRiCSTM to action stringent regulatory mechanisms, while also achieving customer trust and enhanced business value. Today BRiCSTM can be deployed to bolster decision-making and governance, realize efficiency and precision - hitherto unattainable with a traditional siloed approach.
As companies head rapidly towards a whole new world of digitalization and enlightened enterprise values, solutions such as these can ensure competitive vitality and a sustainable future.
HCL will be demonstrating how we enable Dynamic GRC Framework for our customers at the Gartner Security & Risk Management Summit in London, from the 18th to the 19th of September. If you are visiting, be sure to stop by at our booth #PL 5, to find out in person, what Dynamic CyberSecurity can do for you.