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BPXers and SDN community has given GRC a voice.  We are excited to be invited to the discussion.    I recently started blogging ( http://amitgrc.wordpress.com/ )and Marilyn convinced me that I should be engaging with a powerful audience that is part of the SAP community.  As we are in the week between our global Sapphires, my team thought it was best that I not meddle in preparation, so they put me on plane to two different conferences, a few customer meetings, and of course partner sessions.  Great teams manage upward well, but even better when they manage us out.  As I look forward to Vienna, I wanted to start my blog with a simple fact base for us to start a common and productive dialog about what we seeing.  I have been told to be brief (my blogs usually run long), I will just jump start a discussion.  1.  Governance Risk and Compliance is a major concern that companies dont know about.  PCOAB estimates that $638 billion is attributable to lack of GRC.  On a yearly basis, that is $20k /sec.  So a keynote I gave in March, cost $91 million dollars.  I hope the audience took notes.  2.  Everyone says the world is flat, but the reality is that governments are not flatting, but increasing their control over companies. PwC estimates 114,000 new regs since the Reagan Era just in US alone.  3.  Companies are becoming “extended enterprises”, and as a result, transparency across a business value network is reducing almost daily.  This lack of information forces increased greater risk with a company’s on-going operations.  Deloitte identified that 50% of Fortune 1000 lost 20% of their shareholder value once impacted by material risk.  They further estimate that 25% of companies that have a material risk never recover the shareholder value   4.  Companies are starting to create GRC organizations.  We are starting to see the role get created, and at times seems to be leading to political games. Risk managers, Compliance folks, Corporate Secretaries, and Security are all involved in formations of GRC, the question is who leads it.    5.  Change Management occurs slowly.  We are at the tipping point of companies finally wanting to institutionalize this.  Software has the opportunity to make this happen.  In closing this is a fast moving area of opportunity for leaders in this space, and a huge opportunity for business transformation.  Is your organization ready for this change?
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  1. Anonymous
    Amit,
    Good to see you here.
    I’d like to see a whole lot more SAP executives in SDN-BPX, conversing in their own voices with customers, colleagues and partners.
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  2. Ram Manohar Tiwari
    Hi Amit,

    Good question but can you please provide some examples on changes related with GRC?

    Why not discuss something about goodness at home? I mean how “your organization (SAP)” has implemented/implementing GRC?

    Probably people will then be able to relate and come up with an answer.

    I think unlike ERP, GRC solution will be required for all the companies and IT companies will be no exception.

    Generally, we develop enterprise suits and industry specific solutions for other industries but never felt this need for the IT industry. Irony is that while other industries use powerful solutions like SAP for most of their business processes, IT uses MS Excel, Outlook and some project management software to handle their own processes/projects [other than HR ].

    Thanks,
    Ram

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