5 GRC Trends: How will governance, risk and compliance evolve?
The pace of change in the business world is breathtaking.
Business risks are changing daily, from third-party vendors, supply chains, regulatory issues, privacy concerns, operational challenges, cyber attacks, financial worries, environmental compliance, and more. .
These problems are not isolated: they are interconnected risks that require comprehensive solutions. The need for a conscious and holistic approach to governance, risk and compliance (GRC) has never been more critical for organizations.
As the business environment evolves, organizations must evolve their GRC strategies to maintain a holistic view of interconnected risks, understand the financial implications of those risks, and make more informed decisions at all levels.
>Here are some GRC trends to help your organization take a proactive approach to turning risk into strategic advantage.
1. A culture of resilience and agility to face GRC challengesTry as you can, you can't avoid all the risks. Companies must develop a culture of resilience as they review and prepare for the most pressing threats.
Agility in risk management refers to an organization's ability to avoid a crash. On the other hand, resilience is how an organization recovers.
As your business prepares for inflation, economic uncertainty, and the global risk of stagflation (a sharp slowdown in growth), you need to build resilience to overcome obstacles with minimal business impact.< /p>
Resilience has grown in importance in recent years. It integrates with enterprise-wide risk management and works across the organization, providing a comprehensive view of issues. Agility and resilience complement each other.
Agility offers a strategic view of uncertainty, while resilience offers tactical measures to engage across departments. Resilience is also a culture, as it requires the action of all stakeholders in the organization.
Michael Rasmussen, CRM expert, compares this culture to the human body:
“Departments operate as systems of organs that work independently and simultaneously toward the same goals. Organizations must go beyond system isolation to break down silos and look at risk holistically to create a strong culture of resilience."
While 75% of organizations recognize that siled technology systems pose a risk management problem, only 35% are taking enterprise-level action to address the issue.
When companies leveraged smart technology and a holistic view of risk, PwC found that their boards and executives were five times more likely to have high confidence in the ability to the organization to ensure stakeholder trust, greater resilience and better business results.
2. The role of the IOC is changingTechnology leaders, like CIOs, have moved beyond their "secondary" or "background" roles of software implementation and project management. They are now at the center of business decisions and are becoming key decision makers in critical business functions such as marketing, sales, product development and finance.
The 2022 State of the CIO Report reveals that CIOs see their role as balancing business innovation with operational excellence. Three-quarters of IT leaders expect their role to retain its newfound importance, driven by accelerated digital transformation efforts, regardless of organizations' cyclical focus on IT issues.
And more than 80% of CIOs say they are seen as agents of change, focused on innovation.
This radical shift from traditional IT service delivery to a more strategic role allows CIOs to focus on business goals. As your technology leaders increasingly present business cases to executives, they benefit from a risk quantification approach to achieving strategic goals and providing valuable insights to the rest of the C-suite.
Old risk measurement scales, such as low, medium, high, red, yellow, and green, were far too subjective and left stakeholders uncertain about how risk decisions were made. aligned with business needs. By quantifying risk in monetary terms, your organization can have a common risk language that shows its impact...
The pace of change in the business world is breathtaking.
Business risks are changing daily, from third-party vendors, supply chains, regulatory issues, privacy concerns, operational challenges, cyber attacks, financial worries, environmental compliance, and more. .
These problems are not isolated: they are interconnected risks that require comprehensive solutions. The need for a conscious and holistic approach to governance, risk and compliance (GRC) has never been more critical for organizations.
As the business environment evolves, organizations must evolve their GRC strategies to maintain a holistic view of interconnected risks, understand the financial implications of those risks, and make more informed decisions at all levels.
>Here are some GRC trends to help your organization take a proactive approach to turning risk into strategic advantage.
1. A culture of resilience and agility to face GRC challengesTry as you can, you can't avoid all the risks. Companies must develop a culture of resilience as they review and prepare for the most pressing threats.
Agility in risk management refers to an organization's ability to avoid a crash. On the other hand, resilience is how an organization recovers.
As your business prepares for inflation, economic uncertainty, and the global risk of stagflation (a sharp slowdown in growth), you need to build resilience to overcome obstacles with minimal business impact.< /p>
Resilience has grown in importance in recent years. It integrates with enterprise-wide risk management and works across the organization, providing a comprehensive view of issues. Agility and resilience complement each other.
Agility offers a strategic view of uncertainty, while resilience offers tactical measures to engage across departments. Resilience is also a culture, as it requires the action of all stakeholders in the organization.
Michael Rasmussen, CRM expert, compares this culture to the human body:
“Departments operate as systems of organs that work independently and simultaneously toward the same goals. Organizations must go beyond system isolation to break down silos and look at risk holistically to create a strong culture of resilience."
While 75% of organizations recognize that siled technology systems pose a risk management problem, only 35% are taking enterprise-level action to address the issue.
When companies leveraged smart technology and a holistic view of risk, PwC found that their boards and executives were five times more likely to have high confidence in the ability to the organization to ensure stakeholder trust, greater resilience and better business results.
2. The role of the IOC is changingTechnology leaders, like CIOs, have moved beyond their "secondary" or "background" roles of software implementation and project management. They are now at the center of business decisions and are becoming key decision makers in critical business functions such as marketing, sales, product development and finance.
The 2022 State of the CIO Report reveals that CIOs see their role as balancing business innovation with operational excellence. Three-quarters of IT leaders expect their role to retain its newfound importance, driven by accelerated digital transformation efforts, regardless of organizations' cyclical focus on IT issues.
And more than 80% of CIOs say they are seen as agents of change, focused on innovation.
This radical shift from traditional IT service delivery to a more strategic role allows CIOs to focus on business goals. As your technology leaders increasingly present business cases to executives, they benefit from a risk quantification approach to achieving strategic goals and providing valuable insights to the rest of the C-suite.
Old risk measurement scales, such as low, medium, high, red, yellow, and green, were far too subjective and left stakeholders uncertain about how risk decisions were made. aligned with business needs. By quantifying risk in monetary terms, your organization can have a common risk language that shows its impact...
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