The Power of a Holistic GRC Approach
Companies that want to better manage and control their governance, risks, and compliance (GRC) requirements need a holistic GRC solution suite that supports all their monitoring, analysis, and reporting needs. You may be tempted to tackle a single aspect of GRC – such as a topic (access control), requirement (SOX), or business process (bonded warehouse operations). But by incorporating risk and compliance into daily strategy, planning, and operational execution, a holistic approach to GRC helps automate processes, proactively preventing risk events and compliance violations.
An integrated, comprehensive GRC software solution – such as SAP® GRC 10.0 – gives you the efficiency and flexibility you need to balance risk and opportunity across your enterprise.
What should you look for in a holistic GRC solution?
Single platform. Ideally, your GRC solution should exist on a single platform, with a unified interface and shared data model. This makes it easier and faster to implement, maintain, and update data; accommodate customer-specific requirements; and set up end-to-end processes.
Extended roadmap. A strong GRC solution should include frequent and easy updates. It should be easy to expand functionality as regulations change or your business evolves – you may need China localization one year and mobile app support the next. The right solution should be able to adapt to fit your needs, no matter where your company is headed.
§ Accelerated processes. Look for solutions with accelerators powered by in-memory computing – a source of tremendous speed. You could then, for example, use in-memory computing to speed up global trade compliance without affecting business system performance.
Ease of implementation. A unified platform and common programming language make it easier and faster to implement the combination of GRC solutions that work best for your organization. Such flexibility could allow you to integrate with audit management for comprehensive eGRC, add more data sources to risk management, or add new forms to your customs process.
The Benefits of A Holistic GRC Approach
Choosing the right GRC solution can create significant value for your enterprise. Consider the cost of software licenses, implementation services, and solution rollout and operation; it’s imperative that you select a solution that can meet current and future needs. You can calculate value in terms of money saved (i.e., costs reduced or penalties avoided) or in terms of speed, reduced risk, and increased compliance. The strategic value of a holistic GRC approach – if more difficult to translate into hard numbers – is equally compelling. The ability to better predict fraud by analyzing patterns and implementing appropriate controls should have a positive financial and operational impact. Increased transparency into supply chain speed can help improve relationship with local custom authorities. And if your executives sleep better knowing that controls are in place and risk is within acceptable range – that is, of course, priceless.
How should you start? Identify your GRC issues and give some thought to your ideal GRC state. Identify what you’ll need to get there – maybe a new software solution or the skills to support new functionality. Then calculate the cost of doing nothing vs. doing it right at each stage of your plan. What does it cost to do nothing? Where do activities and process begin to fail without adequate controls? Where do risks spike to unacceptable levels? In contrast, look at the cost of a complete GRC solution. What is the “value” of getting to your ideal state – increased revenue and profitability, ability to grow faster, cost savings? Then do the math. Focus on the areas where you’ll see the quickest value gain, knowing that for subsequent GRC phases, you can leverage prior work and skills.
Business Analytics Services from SAP can help you plan, execute, and improve your governance, risk, and compliance processes. Using powerful solutions – such as SAP GRC 10.0 – you can automate governance, mange risk, speed reporting, and reduce costs. For more information on how Business Analytics Services from SAP can help unlock the value of governance and compliance while lowering risk and exposure, visit us online.