Governance, Risk and Compliance (GRC) processes are critical to all organizations. They help prevent you from falling foul of legal and regulatory obligations and can protect you against cyber-attacks and malicious data theft – saving you from the potential financial and reputational damage that it could involve.
They also enable you to achieve better visibility into, and control over, your internal business processes but many organizations face increasing pressure to:
- Operate efficiently with budgetary constraints
- Comply with an expanding set of regulations
- Respond to ever more challenging business objectives
As a result, siloed and highly manual approaches to governance, risk and compliance appear all over an organization, many falling short or becoming cumbersome, error-prone and time-intensive. They also often require multiple systems with many being based in Excel. With its potential to save time, reduce complexity and help organizations make better decisions, the future of GRC is Integrated Risk Management.
What do we mean by an integrated approach?
Integrated risk management (IRM) is an approach you may increasingly see mentioned across a wide range of contexts. IRM focuses on the implementation of these efforts i.e. enabling different business functions to share risk processes and information with each other, breaking down the siloes of information which may previously have existed and creating a more holistic and comprehensive view of risk across the entire organization.
Gartner, who coined the term, defines IRM programs and solutions as combining “technology, processes and data to enable the simplification, automation and integration across three risk domains; Strategic/Enterprise, Operational and IT/Cybersecurity”. IRM solutions, therefore, provide an integrated view of risk ranging from the organization’s strategic objectives and intent down to the enabling technology and assets.
The firm outlines six use cases within these risk domains; Digital Risk Management, Vendor Risk Management, Business Continuity Management, Audit Management, Corporate Compliance and Oversight and Enterprise Legal Management, all of which bring with them unique needs and requirements which must be delivered to the business leaders in order to succeed.
Check out Gartner’s latest IRM Solutions Magic Quadrant report here.
Find out how to apply Integrated Risk Management (IRM) to your business in ‘Better GRC Part 2: Steps to Follow for Integrating Risk Management’ next week.
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