GRC Myths: 10 Risk & Compliance Management Misconceptions to Avoid [Part 3]

After breaking down some common but inaccurate assumptions about GRC tools and technology in Part 2, we’ll conclude with a closely related topic: weighing the costs, benefits, and return on investment, or ROI, for GRC initiatives.

GRC Myths About Cost & ROI

8. GRC is a necessary inconvenience.

Many organizations have traditionally approached GRC as a reactive process, scrambling to respond when there’s a risk event, audit finding, regulatory change, business disruption, or other incident. From this perspective, institutions — and the individuals responsible for day-to-day risk and compliance management tasks — may see GRC as an obligatory nuisance that takes up valuable time and resources.

In reality, GRC doesn’t have to be a drain on your organization’s staff and budget. Supported by the right processes and technology, a well-executed GRC program is an investment that informs business strategy and drives growth and performance improvements. To overcome negative perceptions of GRC, those advocating for program enhancements may need to educate stakeholders about the value of a proactive, data-driven approach to GRC management.

9. We don’t have the budget or buy-in to implement a formal GRC program or invest in GRC technology.

When considering the costs versus benefits of GRC, many organizations assume that launching a formal program or technology solution will require a significant investment, both financially and in terms of time and effort. Providers that offer flexible software-as-a-service (SaaS) products and consulting services can help organizations at any GRC maturity level complete a successful implementation within budget through phased rollouts and scalable solutions.

While focusing on the upfront costs, organizations often fail to consider the gains that may not only justify the investment but also accelerate time to value for their GRC program, such as:

• Increased employee productivity
• Cost and time savings from streamlining management processes
• Improved ability to allocate resources and reduce losses
• Enhanced data quality
• Reduced gaps in risk and compliance
• Increased agility in decision-making and identifying risks and opportunities

Quantifying these advantages influences the cost/benefit analysis and will give a more accurate picture of the ROI organizations can expect to realize from investing in GRC.

Another argument in favor of starting the journey to GRC maturity is its direct impact on operating expenses. Research from McKinsey & Company indicates that digitizing the risk management function through capabilities such as process automation, workflow tools, and monitoring and analytics can reduce the costs of risk activities by 20 to 30%.

In short, comparing your current risk and compliance management abilities with the outcomes of a more mature and streamlined GRC program may reveal some surprising opportunities and help your organization develop a plan for guiding investments and improvements.

10. The effort required for consolidating our GRC processes and data in a single management system isn’t worth it.

Managing GRC through a single technology platform frequently reduces both the number of tools and the number of employees appointed to risk and compliance. Instead of using multiple pieces of software for various management tasks or different risk verticals, organizations get the most value out of a flexible system that can meet their immediate GRC needs and grow with them in the long-term.

Plus, for institutions that choose a comprehensive solution, risk managers and other GRC practitioners can access tools for task management and notifications, data and documentation, assessment, and reporting in one location — significantly reducing manual labor.

The initial outlay of work may seem daunting, but doesn’t have to be; look for vendors that offer implementation and consulting services to help you navigate the transition to a new system.

The Takeaway

In order to start seeing the value of GRC, organizations need to shift their perspective from viewing risk and compliance activities as a burden or regulatory checkbox to recognizing its potential to optimize business strategy and performance and support informed decision-making.

Too often, organizations feel stuck in the status quo of manual, disconnected GRC management or legacy solutions. These options seldom meet evolving internal and regulatory expectations for risk identification, assessment, mitigation, and reporting across the enterprise.

Learn how integrated GRC solutions can help: Schedule a personalized demo to see Quantivate’s GRC platform in action.