Technology

How to Implement a Governance, Risk & Compliance Strategy

Building a balanced Governance, Risk & Compliance Strategy requires experienced IT consultation services. To protect your business, it may be necessary to build a balanced GRC strategy that incorporates elements of information security management. Before we proceed further, it is important to know the basics of GRC strategy. How it works to manage your organization. Let’s clarify some basic definitions first.

What is Governance, Risk & Compliance? 

Governance, Risk & Compliance (GRC) is about the processes, structures, people, and techniques used to manage and control information, assets, and interactions in an organization. GRC strategy is implemented to ensure that the business has the structures, processes, and controls in place to manage risk and achieve compliance with the law and related regulations. Going beyond the traditional concept of security, GRC emphasizes the social and ethical responsibilities of individuals, teams, and business units in creating and achieving organizational objectives. It is complemented by a range of tools and approaches that can be used to fulfill these objectives.

Implementing a GRC strategy ensures that your organization is working to protect its reputation and financial health. You can manage risks proactively before they develop into costly business crises and avoid potentially disastrous – or at least highly embarrassing – incidents, such as those that occurred at the Internal Revenue Service (IRS) in 2015 when internal computer attacks and theft of tax refunds affected more than 300,000 filers. The IRS eventually lost $50 million in unprocessed tax refunds. The CIO.com reports that GRC is a structured way of managing risk, compliance, and alignment with business goals.

Governance

Governance is the way a company manages its resources, responsibilities, and relationships with key stakeholders to coordinate day-to-day activities, achieve business goals, and respond to market and societal events. Governance is enforced by an interdisciplinary team made up of engagement specialists, budget managers, operations managers, compliance managers, risk analysts, and generalists with expertise in methodology, systems analysis, business logic, human resources practices, and technology. For example, the legal team is responsible for making sure that the company remains organized (i.e. maintains a consistent financial position).

Risk Management

Risk means liability. Risk Management is the process of managing a company’s exposure to risk in a way that reduces uncertainty and maximizes return on equity (ROE). More generally, it refers to the management of a company’s cash flows, overall financial profile, and ability to meet risk-related obligations cost-effectively. to minimize the risk of any threat, prepare a solid IT disaster plan for backup. 

There are two ways to manage risk:

  • By trying to avoid risk (especially when doing business online), you may get into trouble if something bad happens because you didn’t manage your risk properly.
  • By managing risk correctly, you can minimize the possible damage when bad things do happen.

In short, if you want to make sure that your company stays competitive in the market, you have to learn how to manage your own risk.

Compliance

Compliance is a core goal for the GRC. Compliance is vital to the success of any GRC activity and should be approached by all relevant parties with an open mind. Compliance is not a technical or narrow phenomenon. It involves a complex interplay of human decision-making, technology, resource allocation, and economic incentives. The development of technology has led to an increase in the complexity of compliance issues, but the underlying subject matter remains the same: how to achieve the right outcome in a way that protects the public interest and promotes economic efficiency.

Benefits of implementation of GRC strategy in your business

Cost-effective: Implementation of GRC measures drives an organization to identify and eliminate low-value processes and areas of productivity wastage.

Quick implementation: By implementing GRC strategies you will see your ERP implementation time dramatically cut without sacrificing functionality or productivity.

Helps you achieve business and social goals: GRC will allow you to beat your competitors to market, create more profitable partnerships, and attract new customers and supporters, and more. 

Data security and monitoring: Governance, risk & compliance is the backbone of data security. There’s no silver bullet that can make your data 100% secure, but GRC can greatly reduce the risk of a cyber-attack. you can also use some audit tools of enterprise software development company to get some best results. 

Validates your reputation: Building a reputation takes more than just good behavior. It takes making decisions based on facts, evidence, and sound principles. GRC provides the foundation for a robust and effective corporate governance program.

How you can implement a GRC strategy in your business

  1. Set a clear security policy

Compliance certifications require certain policies and guidelines, but they’re not the only factor to consider in establishing them.

  • New-task assignment/delegation control procedure
  • You should have a plan for handling any type of disaster or crisis that could affect you or your business.
  • You should carefully think about how to maximize the incentives for your employees
  • A code of conduct will help you make sure that your employees are aligned with your company’s values.
  • Information security is a shared responsibility.
  1. Manage Compliance issues

  • Implement your GRC Roadmap
  • Involve the right roles/persons from the start
  • Make sure the concept is well communicated
  • Keep it simple
  • Implement a GRC Software Package
  1. Implement security procedures at every step

Security procedures are necessary to apply on every step

  • Take care of training needs of end-users
  • Identify key controls for business applications and data
  • Manage risk assessment approach
  • Use various authoritative sources for security measures
  • Have a backup plan for any possible mishap
  1. GRC training as part of the onboarding experience for employees

  • Prepare an agenda for a training session
  • Set a schedule
  • Regroup
  • Recognize GRC needs
  • Educate employees through processes!
  1. Bring top-level management on board

You can bring your business management to peak by following some instructions.

  • Team building
  • Retaining high-performing staff
  • Implement GRC strategy effectively
  • Reach out to top management
  • Communicate the successes

There are other GRC tools that you can use to implement your governance, risk management, and compliance strategy. Becoming more effective with your GRC strategy means continually optimizing – it’s a long-term approach, not a short-term approach. Some of the most popular tools for securing computer systems include GRC software, virtual CISO services, and user management software. All of these cloud-based tools bring automation into GRC processes; thereby, increases efficiency and reduces complexity.