Governance Risk and Control (GRC) can be a complex and challenging process for companies to manage, execute, and monitor each year. Companies must strive to maintain compliance, mitigate risks, and ensure operational efficiency and integrity. In this blog, we will explore the world of GRC tooling and examine how it has evolved, the implications of relying on outdated methodologies and the benefits of embracing next-generation GRC tools.
The Legacy of Sarbanes-Oxley:
Over 20 years ago, the Sarbanes-Oxley Act (SOX) revolutionized corporate accountability and transparency. While SOX served as a catalyst for refining GRC processes, many organizations have continued to rely on the same methodologies, spreadsheets and outdated systems they adopted along the way. As private companies consider the possibility of going public, there is a critical need to invest in their GRC processes to ensure SOX compliance / readiness.
The Future of Next Generation GRC Tools
In response to the ever-evolving GRC landscape, a new set of next-generation GRC tools has emerged. These tools offer companies a more agile and efficient way to manage their GRC processes, streamlining the mapping of risks, controls, and testing. Tools also provide transparency to leadership for status updates, issues and action plans for control owners, and efficiencies to testers and external audit teams. There are many transformative features that these tools can bring to the table:
1. Simpler mapping of risks, controls, and testing:
Next generation GRC tools are designed to simplify the intricate task of mapping risks, controls, and testing. Through intuitive interfaces and user-friendly dashboards, these tools can enable organizations to visually map out their GRC framework, making it easier to identify potential risks and effective control measures. Additionally, completing annual tasks, such as narrative and control updates can be managed with one source of the truth.
2. Enhancing reporting and communication:
Effective stakeholder communication is pivotal in GRC management. These tools provide enhanced reporting capabilities allowing organizations to generate comprehensive reports that provide insights into their GRC performance. This data driven approach fosters better communication with stakeholders, including executives, auditors, and board members, ensuring everyone is on the same page regarding risk exposure and control effectiveness.
3. Amplifying effectiveness and efficiency:
Next generation GRC tools leverage automation and integration to drive efficiency. Repetitive tasks like data collection, validation, and reporting can be streamlined to free up valuable resources. By reducing the time spent on administrative tasks organizations can focus on higher value activities such as strategic risk management and risk assessments.
Embrace the Future
Next generation GRC tools have immense benefits for organizations looking to find a more agile, data driven and efficient approach to GRC management. Outdated tooling can prevent growth and expose your organization to unnecessary risks.
In 2002 Sarbanes-Oxley provided a foundation for effective GRC practices and many companies have been following the same methodology and systems since they first implemented SOX. Private companies considering going public may need to invest in their initial GRC process as part of their SOX readiness. Next generation GRC tools offer an opportunity for businesses that need simplicity, enhanced communication, and improved efficiency in their GRC process. By adopting these tools, companies can position themselves as proactive leaders, equipped to navigate the complexities of GRC with confidence.
