GRC in the Past, Present & Future

GRC as an acronym denotes GOVERNANCE, RISK, and COMPLIANCE but the full story of GRC is so much more than these three words. Organizations in the past followed a non-integrated process to manage GRC. This non-integrated process led to a cumbersome environment in the organization followed by high costs, duplicity, lack of visibility into risks,   inefficiency, greater vulnerability, Inability to address third-party risks, and too many negative surprises.

The core essence of GRC has evolved in response to the need for a standardized and centralized data and process management structure supporting compliance and risk management functions in light of increasing complexity in both activities.

An effective GRC regime is essential in today’s business world but can be challenging to implement.  The organization in the present have realized that implementing the GRC system can lead to more efficiency, reliability and is important for sustainability and future development. GRC can altogether transform your business. But, there are certain challenges pertaining to implementing GRC system, the most important is the buy in from stakeholders. It is pertinent that stakeholders should understand the importance of GRC system and benefits it can bring in.

GRC processes not implemented properly can create silos at many companies, creating abundant frameworks and systems which can result in:

• Poor understanding of financial, operational, IT, regulatory, and fraud risks.
• Ineffective risk minimization.
• High GRC costs
• Weak financial statements

Today, however, businesses are investing in GRC implementation and demanding much more from their GRC programs. When businesses accomplish these objectives well, they are positioned to excel in security, reliability, automation, and privacy. But first, they need to integrate GRC with the rest of the business to build a level of digital trust in terms of data accuracy and reliable business processes. Compliance can be overwhelming, but with a tool like VComply, the risk of noncompliance is enormously reduced. VComply is a one-time solution for all mid-size and large size organizations. VComply provides different solutions like Audit management, Compliance management, risk management, Enterprise GRC management, Issue and Incident management, and Risk Management.  

In the present era, the adoption of GRC remains a significant aspect of business operations, especially as technology, regulations, and business landscapes continue to evolve. Here are some trends and considerations for the adoption of GRC in the present era:

1. Digital Transformation and Technology: As businesses continue to digitize their operations, GRC practices need to adapt to new technology-related risks and challenges. This includes data privacy concerns, cybersecurity threats, and the need to manage risks associated with emerging technologies like artificial intelligence, blockchain, and the Internet of Things.
   
2. Regulatory Landscape: Regulatory requirements are constantly evolving across industries and geographies. Organizations need to stay up-to-date with these changes and adjust their GRC strategies accordingly to remain compliant. This might involve adapting to new data protection regulations, environmental standards, financial reporting requirements, and more.
   
3. Remote Work and Distributed Operations: The COVID-19 pandemic accelerated the adoption of remote work and flexible operational models. GRC frameworks must now address the unique risks and compliance challenges associated with remote work, such as data security for off-site employees and maintaining compliance with industry regulations in a distributed environment.
   
4. Data Privacy and Protection: With the proliferation of data breaches and increased awareness of privacy rights, organizations are under greater scrutiny to protect customer and employee data. GRC practices should prioritize data privacy and protection, aligning with regulations like the General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA).
   
5. Ethical and Social Responsibility: Modern consumers and stakeholders are placing greater emphasis on ethical business practices and social responsibility. GRC strategies should consider these factors and ensure that organizations operate in ways that align with societal expectations and values.
   
6. Integrated Risk Management: GRC is moving toward a more integrated approach where various types of risks (financial, operational, reputational, etc.) are managed together rather than in silos. This holistic approach enables organizations to better understand the interplay between different risks and make informed decisions.
   
7. Automation and AI in GRC: Automation and artificial intelligence are being leveraged in GRC to streamline compliance processes, detect anomalies, and provide predictive insights. This can improve efficiency and accuracy in risk assessment and compliance monitoring.
   
8. Board and Executive Involvement: GRC is becoming more of a strategic concern at the board and executive levels. Leadership is recognizing that effective GRC practices contribute to overall business sustainability and resilience.
   
9. Supply Chain Risk Management: Organizations are increasingly focusing on the risks associated with their supply chains, as disruptions can have cascading effects. GRC strategies should address supply chain risks, including geopolitical, environmental, and operational factors.
   
10. Sustainability and Environmental Concerns: Environmental, social, and governance (ESG) factors are gaining prominence in GRC efforts. Organizations are expected to manage their environmental impact, ensure responsible sourcing, and maintain transparency in their ESG practices.

So What is GRC’s future in the next few years?

Organizations initiating or are already in the middle of their GRC journey should ideally opt for a holistic, integrated and programmatic approach. It is important to understand that responsibility for GRC compliance lies not with just a few individuals, but rather in the combined hands of the entire organization.

Looking toward the future, the adoption and evolution of Governance, Risk Management, and Compliance (GRC) will likely be influenced by several key trends and considerations.

1. Predictive Risk Management: Building on AI capabilities, organizations might move toward predictive risk management, where algorithms can identify patterns and signals to anticipate potential risks and provide recommendations to mitigate them.
2. Real-time Monitoring and Reporting: With the increasing speed of business operations, GRC systems might need to offer real-time monitoring and reporting capabilities to address risks and compliance issues as they occur, rather than relying solely on retrospective analysis.
3. RegTech Solutions: The use of technology in regulatory compliance, known as RegTech, is likely to grow. These solutions could automate compliance processes, streamline reporting, and help organizations keep up with the constantly evolving regulatory landscape.
4. Integrated ESG Management: Environmental, Social, and Governance (ESG) factors will likely play an even more significant role in GRC strategies as stakeholders demand greater accountability and transparency in these areas.
5. Collaborative GRC Ecosystems: Organizations might collaborate more closely with partners, suppliers, and industry peers to share best practices, benchmark performance, and collectively address shared risks and challenges.

Regardless of GRC’s past, present, or future, GRC platforms represent the best way to meet the requirements of compliance and risk management. No matter how you define it, the adoption of a GRC platform can be a defining moment at your company.

VComply helps an organization manage compliance, risk, governance using a centralized database. VComply ensures your organization is at the right track by providing a hassle-free environment that your business requires!