GRC creates security and opportunities for businesses by supporting the management and management of the business in a good way. To be able to live with an acceptable level of risk, GRC ensures that risks are identified, assessed and managed. In addition, GRC creates an environment where different regulations, both external or internal, can be followed and complied with.
For many businesses, digitization facilitates increased value creation and innovation in addition to renewed, simplified and automated business processes. GRC is an important building block for the success of digitization, but in many cases the GRC is not always included in the digitization journey. Why not? For many businesses, the GRC is seen as an inertia that slows down and prevents the new agile working methods that support and enable digitization. This can lead to the development and continuous improvement of digital products and services that are vulnerable to new risks and threats, are exposed to quality issues, and do not comply with new and existing regulatory requirements (such as PSD2, IDD, GDPR, Security Law, ICT Regulations, and more).
In order to realize their digital ambitions and digital gains, the company’s management processes, risk processes and compliance should be digitized. In addition, the GRC should play a central role in the digitization work. This can be achieved through an approach called TG for the GRC of the future.
The GRC of the future brings a digital approach to the GRC work by creating security and opportunities for organizations in the digital world. There are two different ways to digitize the GRC and the approach that is most relevant depends on the business’s digital ambitions. The first approach is to digitize one or more of the GRC processes. This is about using analytical / LEAN thinking and digital technologies (such as robotization) to streamline and automate management processes, risk processes and compliance. Digitizing GRC processes promotes innovation, quality and other digital gains by speeding up, smoother, and dynamic GRC processes. To succeed in digitization, GRC should be part of the digitization journey and another way of digitizing the GRC is to use it as a tool for digitization work. This approach applies to the digitization of the entire business or part of it, and is based on a comprehensive approach to GRC that transcends the entire organization, processes, applications, data and technologies of the enterprise. The approach significantly increases the likelihood of succeeding in digitization and can secure the benefits expected from digitization.
The GRC of the future requires the establishment and introduction of several basic principles for GRC that make GRC fast, flexible and dynamic in the digital context. The principles are described below:
GRC is an important prerequisite for the success of digitization, but is not always included in the digitization journey. In order to realize their digital ambitions, the company’s GRC processes should be digitized and the GRC should play a central role in the digitization work. This can be achieved through an approach called TG for the GRC of the future. Depending on the company’s digital ambitions, one or more of the company’s GRC processes should be digitized. The GRC of the future can also be used as a tool to succeed in digitization, where the entire business or parts of the business can be digitized. Six basic principles for the future GRC ensure that the business can succeed with GRC in a digital context. The principles include integrating the GRC into the digitization strategy, setting the focus of consumers, customers and employees, a coherent and coordinated approach to the GRC, using a fast, agile and dynamic approach to the GRC, digitizing the GRC processes, and continuously identifying and managing new digital risks and opportunities.
Author: Martin Guy Williams