In the traditional view, compliance was something that came up mainly in audit processes, while risk management and governance are functions reserved exclusively for upper management. Now, however, enterprise risk, compliance, and data protection mean something different. Ultimately, data protection – in the cloud or on-premises – is used to control and monitor how your data flows with automated controls for risk management, data classification, validation, audit, and protection. For business management, it has become essential to use enterprise governance, risk, and compliance so as to simplify performance enhancement measures. Governance relies upon risk management and compliance activities to provide timely information abut the status and loss exposure of an organization.
As the term suggests, governance, risk, and compliance (GRC) is the synchronized integration of all governance, risk management, and compliance activities within your organization. Corporate governance, risk management, and compliance management, and other line-of-defense functions, must invest in managing digital risks that matter, and risk functions must transform. For the most part, organizations use GRC platforms like ServiceNow, which has a suite of applications that provide timely, comprehensive, and continuous information for auditing, reporting, and compliance purposes.
There are several considerations businesses need to make when approaching governance, risk management, and compliance. Substantial duplication of tasks evolves when governance, risk management, and compliance are managed independently, with negative impacts on your operations costs and GRC metrics. Business enterprises are required to maintain adequate governance over their entire IT control environment regardless of whether it is deployed in a traditional data center or in the cloud.
Organizations are under pressure to significantly transform their governance, risk, and compliance processes as traditional mechanisms for risk management and regulatory compliance are fast becoming outdated. You should develop your GRC processes and policies in close conjunction with a range of industry and regulatory stakeholders to directly address the needs of professional managers. Many organizations are grappling with a number of GRC challenges, which are largely driven by the increasing complexity that has been caused by technological change, changes in regulations, growing competitive pressures, and the impact in globalization and integration of financial markets.
The official definition of GRC is that it is a capability to reliably achieve objectives (governance) while addressing uncertainty (risk management) and acting with integrity (compliance). To achieve governance, risk, and compliance means that the GRC roles and functions have to take in a massive amount of information, process it, and make decisions. All organizations need to be able to decide how to manage data, realize value from it, minimize cost and complexity, manage risk, and ensure compliance with ever-growing legal, regulatory, and other requirements. By working together, an effective GRC team can deliver a coordinated, organization-specific, cost-effective solution for businesses seeking to assess, enhance, and maintain enterprise-wide compliance function.
The qualification of the regulatory environment and, consequently, the role of compliance has changed significantly in recent years. Your organization should provide a complete and accurate enterprise view into risk, creating a single, integrated view of risk and compliance across the organization that links risks to root causes, events, hazards, and other elements of governance, risk, and compliance. Depending on the type of information or harm from a cyber-attack, your organization has to coordinate compliance, legal, information technology, public relations, and business recovery efforts. Once defined, the governance model delivers the control, alignment, accountability, transparency, and compliance results desired by organization leaders. Embedding compliance into both strategy and everyday operations begins with effectively establishing the tone at the top, assessing compliance and ethics risks in collaboration with other risk functions, and building the governance and oversight structure that provides a high level of confidence over regulatory matters.
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