The Governance, Risk and Compliance landscape is known to change continually. In simple terms, if your business is compliant, it means you are obeying the rules and regulations. For organizations, the complications are high as operating across numerous geographical locations with a varied set of standards and regulations, the governance, risk and compliance industry is at the onset to reach more than?$64.62 billion by the year 2025.
But What Is GRC / Governance, Risk And Compliance?
Governance, Risk and Compliance (GRC) describes the strategies for handling an organization’s complete governance, compliance and risk management with regulations. Consider GRC Solutions as a well-defined approach to positioning businesses in objectives, while efficiently GRC Tools and governance risk and compliance services and achieving organizational requirements.
Well-defined GRC solutions come with lots of advantages such as enhanced decision-making, optimum IT investments, exclusion of silos, and diminished fragmentation among groups and sectors, to name a few.
In 2020, organizations will continue to struggle with ever-changing data security and data privacy tasks. While the IT industry risk environment has become more complicated, there are evolving tools that can level the playing field and make it simpler for organizations of all sizes to?keep up with their responsibilities and obligations.
To help you comprehend what is happening in the governance, risk and compliance landscape, we have listed three GRC trends that will be shaping the agendas of CISOs, CIOs, and CTOs in and possibly beyond 2020:
Data privacy has developed to be one of the top risk areas in 2020. Considering the number of states that have decided to sanction their state-level data privacy bills in the year of 2018 and 2019, it’s evident that multiple state legislators are not sure that the central government will be able to get a national data privacy act passed.
Consequently, organizations must acclimatize to a mix of Compliance And Risk Management frameworks throughout the state lines, which is a challenging obligation to fulfill when they rely principally on human resources and manual procedures.
Presently, numerous business leaders are still cautious about using technologies such as Robotic Process Automation (RPA), Artificial Intelligence (AI), and Machine Learning (ML) to simplify and automate internal procedures. But for businesses to keep up with the legislative and regulatory changes, while also ensuring compliance effectively and reliably, management and compliance leaders need to embrace new technologies.
Moreover, cyber-security concerns persist in keeping the governance, risk and compliance management professionals of IT security and C-suite executives troubled and up at night. As per the?2019 survey conducted by Marsh and Microsoft, in the previous two years, cyber-risks have turned to be even more strongly ingrained as an organizational priority.
New-age technologies such as Artificial Intelligence and Machine Learning hold much potential and can have a profound influence on an organizations’ capability to detect, evaluate, and address data-security and privacy risk to achieve their legal responsibilities. In 2019, a massive $10 billion was poured into top privacy and security?companies as per Crunchbase. Several of these investments were for companies that offer technological assets for the management and handling of privacy and security.
For 2020 and beyond, organizations are expected to integrate and implement technology to keep up with the numerous moving cases—such as advancing cyber-risks and data-privacy obligations to ensure compliance and risk management practices strategically.
Conferring to Marsh & McLennan’s Cyber and Data-Security Risk Survey, it is noted that merely 18% of small-sized businesses stated that they had developed a cyber incident reply plan, which means Compliance and Risk Management is getting intricately imbibed into foundational practices.
At present, businesses are even now battling to take action in response to prevalent cyber threats and the lack of capability to hire the top talent, thus making the situations much worse in terms of
Presently, there is a war for talent in the field of cybersecurity. As an estimation, there are nearly?2.93 million cybersecurity job positions that are open and vacant around the world, corresponding to non-profit IT security associations and organizations ISC.
The required business skillsets for security and compliance leaders are continually evolving, which makes it more challenging to make the right hires. For instance, an efficient chief information security officer (CISO) requires skills in three incredibly distinct areas:
Governance, Risk and Compliance Administration
Mechanical and Technical IT expertise
Communication and management skills
CISOs need to be well-versed in IT governance, risk and compliance evaluation procedures, proficient in numerous IT applications, trained at acquiring new technologies, and retain efficient communication and leadership abilities. And, such precisely blended skills are challenging to find.
In 2020, an approach that only emphasizes on hiring to tackle advancing cyber-risk and data-privacy challenges are not adequate to mitigate risks, safeguard the organization, and preserve a competitive advantage. CISOs’ governance, risk and compliance strategies must incorporate evaluating and implementing new technologies to automate governance risk and compliance services, apart from exploring GRC Tools and SAP GRC solutions.
Until now, most organizations treated governance, risk and compliance management as a tick the box exercise. In 2020, organizations will start seeing compliance as an indispensable function of GRC solutions for business sustainability. Technology and business leaderships have witnessed ample instances to know that skipping and ignoring red flags from cyber prowlers can impose immense ramifications and?may even cost them their jobs.
For example, in 2018,?Voya Financial (VFA) was compelled to pay?$1 million to resolve charges associated with its failures in cybersecurity guidelines and procedures encompassing a cyber infringement that compromised the private information of thousands of consumers.
According to the Socio-Economic Classification (SEC), Voya Financials’ failure to cease the cyber intruder’s entry stemmed from vulnerabilities in its cybersecurity practices. This could be easily avoided by implementing effective cyber-proof governance, risk and compliance management, SAP GRC or GRC Tools.
If VFA had implemented appropriate GRC Solutions procedures and processes, then the institution would have instantaneously flagged the two contractors who were attempting to reset their passwords and discovered the fraudulent actions. While neglecting red flags from cyber intruders that once appeared like a tiny miscalculation, as demonstrated by VFA and so many others, the implications are enormous.
What happened at VFA can happen at any organization that does not regularly assess or implement their security processes and procedures. To ensure your organizational safety at all times, you’ll want to monitor the effectiveness of the security procedures and methods incessantly, and check them on routinely.
Governance, risk and compliance services with regulations and consumer obligations will grow to be progressively challenging to handle for organizations. In fact, probably over the next few years, we will see more than half a million audits that presently don’t exist. Similarly, in the next decade, we may see a constant flow of substantial new lawsuits about access to data.
With this in mind, for 2020 and beyond, incessant analysis and review of an organization’s governance risk and compliance services program should become the industry standard, considering a business wants to expertly navigate through the dangerous and occasionally incomprehensible data-security and data-privacy landscape.
TRC Corporate Consulting’s?GRC solutions support clients in dealing with wide-ranging concerns of organizational governance, risk, and compliance management regulations. Our experts also deliver GRC solutions, including SAP GRC, Internal Audit, and specialized support for advisory services for financial reporting, taxation, HR Shared services, corporate?consulting, and IBC advisory services.??
Our GRC Solutions’ professionals help organizations identify, analyze, manage, administer, and control risks and compliance tasks. Moreover, our experts also practice supervising and administering resource deployment, governance risk, compliance services, and comprehensive operational clarity to better the organization’s foundational effectiveness of GRC solutions and deliver cost savings. For any questions about our services, contact our team!?