GRC is a growing trend in the business industry today. It is where the boards and executives evaluate the potential risks for their firm, its mitigation and employ work assessment. For humans, these tasks are time intensive and require much effort which is why companies use automated tools to have Governance, Risk and Compliance (GRC) in place with their company standards.
GRC software, GRC solutions, or GRC platforms are different terms used for a tool that streamlines Governance, Risk, and Compliance (GRC) abilities for a company. Whichever term is used, the result is that firms can assess, execute, and manage risk management policies across the board reasonably and reliably.
Properties of a Good Governance, Risk, and Compliance Tool
In one integrated system, a new, holistic GRC tool like Diligent allows a business to centralize risk management, unify compliance management, and streamline internal audits. However, there are some of the essential features that are must-have for GRC tools. Let’s discover those below.
- It must automate admin duties, expedite testing and certification, streamline documentation, and receive real-time SOX reports with SOX.
- It must coordinate audit planning, practice, and reporting, conduct risk assessments, keep track of your auditing process, issue tracking, and remedial status.
- A good Governance, Risk, and Compliance tool avoids duplicative assessments and expedites reporting by managing compliance structures, processes, risks, issues, rules, and reporting.
- A GRC tool streamlines risk identification, evaluation, response, prevention, and monitoring; combine risk management operations to gain consistency and avoid unnecessary risk exposure.
When participants across a company use GRC solutions to improve the productivity and effectiveness of a variety of audit, risk, and compliance professionals, they are most effective. There are specific tasks that only a particular group should tackle.
- First and foremost, business stakeholders will use a GRC platform to provide input into the risks, constraints, issues, and mitigating factors that process owners own and govern.
- To promote optimal risk management practices and oversee compliance with applicable laws, regulations, and frameworks, the Risk and Controls team and the Compliance team will employ a GRC system.
- The Institutional Audit department should use GRC technology to provide adequate oversight on governance, risk assessment, and internal control system effectiveness.
The characteristics of a good GRC tool mentioned before and assigning the skillful team’s GRC implementation through the tool can help you. All three positions in your GRC program will improve communication and risk visibility while reducing silos among relevant financial institutions.