The Nordic region is consistently ranked high on multiple indicators – economic growth, transparency, and social justice. It is no wonder then that this inspires great confidence in their social and public institutions, making the region ideal for global businesses.
However, as these nations have become more globalized, their risk and compliance requirements have also become more stringent. In fact, their ever-growing reliance on a distributed network of vendors, partners, and customers has further elevated their risk profile exponentially.
The Need for Revitalizing Nordic GRC Goals
In past few years, the reputation of numerous Nordic firms has been harmed due to compliance issues, external threats, cyber-attacks, and regulatory supervisions. Subsequent investigations have revealed multiple oversights and gaps in their compliance processes. The result has been the highly negative press coverage of the concerned institutions and the irreparable losses to not only their businesses, but also their reputations.
Apart from these lapses in GRC implementations, the region has also been targeted by external digital threats. The region has already faced numerous large scale cyber-attacks with a company like Norsk Hydro losing USD 40 million in just one attack. We’ve also seen how other non-business incidents, such as terrorism and natural catastrophes, can plunge an unprepared organization into disarray.
Challenges in Advancing GRC Transformations
While Nordic organizations have always been dutifully attentive to changing regulations, they’ve faced a number of challenges in the effective implementation of their GRC measures. These organizations still lack a 360-degree view of their customer, struggle with accurate fault detection, lose efficiency due to manual efforts in compliance functions, and can’t access high quality customer data. As a result, the quality of their GRC initiatives continues to be lag modern enterprise standards.
Enterprises in these regions understand that they need to pay more attention to risk and compliance management. It’s clear that issues arising from corruption, compliance failures, human and labor rights, and geopolitical and environmental disasters can cause just as much damage to a company’s value as cyber threats, fraud, and business negligence.
In this regard, the terrorist attack on Norwegian energy company Statoil’s Algerian facility in 2013 comes to mind. The company lost dozens of employees and millions in infrastructure in this unexpected tragedy. In response, they took the right steps to revitalize their systems by developing and maintaining a security risk management plan that improved their emergency response.
In the wake of these issues and incidents, Nordic businesses and governments seriously re-evaluated their approach to GRC tools and made one thing amply clear: Nordic enterprises needed advanced IT skills, process frameworks, and methodologies to effectively manage growing risks. Unfortunately, despite their advance economies, these nations don’t possess the necessary skilled talent that is needed for implementing advanced GRC technology solutions.
In fact, the Danish Government predicts that by 2030 they will be short of 19,000 IT specialists while the Finnish Information Processing Association estimates a shortfall of 15,000 IT engineers by 2020. This will require firms to work with global partners to address these skill issues. Seeking a trustworthy vendor or partner is now a top priority for these enterprises.
The Nordic Approach
Since 2017, Nordic enterprises have also adopted an integrated approach to their process transformation by standardizing taxonomies across the Three Lines of Defense Model to develop a holistic risk management framework. They are also supporting their workforce by leveraging intelligent automation across the Three Lines to drive enhanced outcomes and transform processes across the compliance system.
By following these best practices, they have been able to clarify the roles and responsibilities of their people and empower them to manage risks more effectively. Moreover, these automated and structured processes have allowed them to ensure optimum levels of controls and risk monitoring. For global firms, embedding automation-control activities within business processes and functions have proven to be instrumental in driving risk management process transformation.
As the very nature of risk grows in the digital world, compliance and regulatory requirements evolve as well. Staying updated and compliant then become a complex task, which includes numerous critical dimensions such as audit and internal control. With an integrated approach to GRC tools, organizations have not only improved efficiency and enabled their workforce to execute compliance requirements with ease, but also allowed them to stay competitive and relevant.
By learning its lessons and acclimatizing quickly to a new risk landscape, the Nordic region is rapidly becoming the hub for GRC transformation knowledge. As Nordic enterprises turn to collaborate with global players to seek out new solutions, it is imperative that they choose partners who not only possess unmatched domain expertise and requisite solutions capabilities, but also deeply understand the challenges unique to the Nordic region.
Driving Value with HCL
HCL has delivered and implemented advanced GRC solutions for some of the world’s largest firms, thanks to our superlative experience and expertise in the GRC domain. Powered by our industry-leading GRC frameworks and accelerators, we have helped our customers adopt global best practices while achieving faster implementation times, and an enviable ROI on their GRC investments. Our efforts have helped global organizations identify and mitigate risk and safeguard their reputations as they face mounting compliance challenges.
HCL is already the partner of choice for multiple Nordic enterprises for their eGRC programs. We have developed an industry-specific GRC solutions portfolio that offers customers the right combination of methodologies, technical tools, and advisory services to address their regulatory and business needs. We bring the power of automation to GRC systems, thereby driving their effectiveness for enterprises and transforming challenges into new opportunities.
Today’s business environment calls for a greater and improved focus on corporate governance. HCL’s unified eGRC program can help organizations identify, understand, and remediate the challenges of enterprise risk management and achieve effective corporate compliance. In the values-driven Nordic region, the combination of Nordic innovation and HCL’s “Relationship Beyond the Contract” attitude creates a mutually rewarding scenario for all.