Future of GRC
Although this might sound like a something that is only just been looked at in your organisation, it is, in fact, something Forrester Research analyst, Chris McClean, predicted back in 2009, before the turn of the last decade. And he was right. An uncertain and tumultuous economy, coupled with rising regulations, has put GRC top of mind for businesses. While the importance of GRC remains unchanged, its approach hasn’t.
The next generation of GRC
Essentially, GRC technology has evolved from providing basic data capture and reporting to intelligent GRC. And it’s only just the beginning. We will soon see cognitive technologies take GRC to the next level. Machine learning, predictive analytics and automation, for example, will help GRC solutions learn from experience and draw conclusions, identify trends and patterns, solve difficult problems, create new perspectives and more. Here are just three use cases we are excited about:
1. Predictive analytics
Predictive analytics is fast gaining popularity – and rightly so. This powerful resource can scan through thousands of data sets and records, making it easy for organisations to learn from mistakes made in the past and predict the future. It also aids them in deciding on adequate precautionary actions to prevent or minimise potential losses as well as avoid similar risks returning.
It’s no wonder, then, that organisations are adding predictive analytics to their arsenal of risk management techniques. They can be confident that, as long as it’s applied appropriately, a machine will provide the best assessment and estimation of what would happen under any given circumstances – helping risk and compliance teams to identify and address issues immediately.
2. Data validation
Advances in machine learning and automation are enabling organisations to efficiently and effectively manage GRC data. An example – that the most critical controls are well understood and managed, many organisations are still faced with tackling poorly designed and duplicate controls which are often challenging to manage and maintain and, at worst, do not address all risks faced.
An automated solution can remediate such control issues. It will be able to identify where there are gaps in control coverage across the organisation, improve the quality and readability of control documentation as well as act as a quality gateway to reduce the manual effort required in the control management process. This will only free up time for GRC teams to spend on higher-value tasks.
3. Continuous risk and control monitoring
The emergence of data analytics technologies has unlocked opportunities for enterprises to take a more proactive approach to GRC. As such, many are now exploring real-time Continuous Auditing (CA) and Continuous Monitoring (CM) disciplines – as well as Continuous Controls Monitoring (CCM) techniques – to automate the monitoring and testing of a range of internal controls. All can deliver regular risk and insight into the status of controls and transactions across the business.
In return, GRC teams can benefit from greater audit efficiency and effectiveness, enhanced internal controls and improved performance and more timely information to expedite a response and reduce cost. They will also see far greater transparency and a reduction in complexity.