Data is the fuel for many organizational decisions and strategies. Used to track performance and drive improvements, data analytics is a key but often underutilized tool for effective governance, risk, and compliance (GRC) management.
As compliance teams seek better ways to manage, document, and report on their activities, investing in data analytics — and related capabilities like integration and automation — offers a path to program maturity.
A firm’s board of directors plays a critical role in the compliance strategy, and many regulatory bodies insist on board-level oversight of risk and compliance management. In 2020, the Department of Justice released updated corporate compliance guidance emphasizing that compliance officers need access to relevant organizational data to enhance their compliance management program and enable “timely and effective monitoring and/or testing of policies, controls, and transactions.”
Implementing this guidance could be more complex than it first appears. Board members, CCOs, and other decision-makers need to consider several questions to move towards data-driven compliance management:
Read more: Why Updating Your GRC Processes Makes Sense >
Organizations need to improve their data access and insights if they want a more efficient, agile compliance function. By leveraging technology and automation, compliance teams can improve their ability to manage emerging risks and incidents and deliver timely information to stakeholders.
Adopting a standardized technology architecture streamlines processes and promotes improvements throughout the compliance management lifecycle, including:
Organizations are discovering that manual, document-centric approaches to compliance take up too much time and resources and don’t support effective management, monitoring, and reporting. Amidst constant regulatory and business changes, manual GRC management processes can’t keep up.
Read more: Why Manual GRC Processes Don’t Work >
There has never been a greater need for compliance automation, built on a flexible technology and information architecture, than there is today. Back-end compliance management and oversight are crucial to organizational resilience, and a compliance management solution enables data analytics, coordination, and information-sharing between all relevant stakeholders.