Wednesday, December 7, 2022

Top 4 Challenges of Implementing GRC Solutions

By Nisha Sharma - November 09, 2022 4 Mins Read

GRC solutions automate data collection, correlation, and reporting to provide a more comprehensive view of how well the business is functioning, as well as how well it is adhering to legal requirements and managing risk.

The implementation of Governance, Risk & Compliance, or GRC solutions in business processes comes with its own sets of challenges that need to be addressed in advance, so things run as smoothly as possible, with the least amount of disruption to business. But there are some serious challenges that have been identified. Some of the more critical GRC solutions challenges are-

Teams & their roles

Identifying the key people and their roles in the GRC solution is quite tedious. Companies waiting to define the teams and their roles leads to delays, rework and frustration as a new joiner might have a different perspective or goal. This is especially essential with the sponsors, as they often set the high-level agenda.

Lack of GRC framework

With the evolution of business opportunities, regulations evolve too.  The collaboration of the business units seems solid on the surface, but if not integrated adequately, it complicates the whole GRC process of developing a good frame GRC framework. In order to empower businesses to make informed risk management decisions and reduce exposure to incidents that result in loss or risk, it is also crucial to define a strategy that brings all of this pertinent, insightful data together and prioritizes critical tasks along with identification of audit activities with the greatest potential for impact.

Also Read: Global Enterprise eGRC Market Will Grow Big By 2026

Unified Vision

A unified vision is misleading to an enterprise-wide culture of non-compliance. Businesses across the board function typically in silos. All teams have their own data, technology, processes, stakeholders, and its own compliance requirements to take care of. Too many silos, with their lack of integration, governance risk, and compliance (GRC) processes ineffective which are not workflow driven leaving no integration reporting or transparency. Business units throughout the company invest in and purchase solutions that have been designed to address particular difficulties or achieve certain business objectives as technology continues to advance.

While there is little doubt that this investment has increased efficiency, it has also made the issue of organizational silos worse. These instruments subsequently collect enormous amounts of data that can aid businesses in making wise business decisions, however, the data is not in line with pertinent business facts.

Demands from governments & regulatory organizations

One thing is certain, GRC mandates are here to stay, even as government regulators look to exert control on enterprise practices via stricter GRC requirements. It’s crucial to remember that compliance is actually an organization-wide obligation even though most enterprises have a risk and compliance department to handle this constant demand. The entire corporation will be impacted if even one department or business fails to adhere to the required standards. Therefore, it is crucial to integrate compliance into each business unit and the overall organizational culture. This means that in order to address compliance consistently throughout the company, particular rules and procedures must be put in place.

To ensure that new rules may be seamlessly incorporated into all business operations, efforts should be taken to maintain a constant connection to GRC.

Businesses will also be better able to fulfill the demands of evolving regulatory standards if their GRC framework is adaptable.

Also Read: Effective Implementation of GRC technology

Manual Processes

There are many complicated business processes that support business operations and are interconnected with numerous IT systems; some of these procedures may be manual. Risk and compliance teams are slowed down by the use of archaic procedures, and GRC documentation is dispersed over spreadsheets, emails, phone calls, and a variety of other platforms. The hazards of a lack of responsibility and follow-through, and consequently, a lack of visibility to ongoing GRC management, are amplified by this GRC dispersion. Manual GRC solutions provide no intelligence. Large amounts of acquired data must be processed and reported from manual operations in order to extract pertinent information. GRC solutions have made analysts look to manual processes and disparate tools, to find insights; an inefficiency renders enterprises inability to meet compliance requirements.

The implementation of one or more GRC solutions is no small feat and is bound to be unforeseen challenges along the way. However, if businesses will be aware of the significant challenges in advance, they can proactively create plans to address them.

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AUTHOR

Nisha Sharma

Nisha Sharma is working with OnDot Media as a Tech Journalist. She has done Post graduation in Journalism & Mass Communication. Her prior experience was in B2B as a Content Writer. This is her first stint with a technology publication and she is on the high curve of learning about the IT sector, it's challenges, and the trends that move it forward.

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