Regulators across the globe have been putting a greater emphasis on operational resiliency. Operational disruptions and emerging risks pose a significant challenge to organizations, and as a result, many are starting to realize that risk and compliance functions need to be embedded into their controls, policies, and procedures enterprise-wide. This level of governance, risk, and compliance (GRC) integration provides coordinated and consistent management efforts, better visibility, and improved efficiency in identifying and managing risk and disruption.
Today’s operational environment is dynamic and complex, and financial institutions are increasingly reliant on third parties to carry out critical business processes and services. These dependencies only amplify the risk of disruption. Third-party risk is also the organization’s risk.
This growing complexity is driving a need for a more coordinated approach that incorporates internal and external data into a single framework. As the regulatory landscape grows and evolves, institutions need to stay ahead of the curve and look towards building improved resilience throughout the extended enterprise.
Viewing governance, risk, compliance, and resiliency as an integrated function allows institutions to link compliance requirements and risk insights to their policies, procedures, and processes. In turn, this enables greater visibility, agility, effectiveness, and efficiency.
Organizations have seen high levels of disruption over the past year, and many do not see that volatility going away anytime soon. Executives need to put a greater emphasis on business continuity and integrate risk and resiliency functions with the overall business strategy and objectives, with clearly set benchmarks.
For a GRC program that’s in tune with your organization’s emerging risks, compliance requirements, and strategic objectives, you need to set the stage for success with an automated and integrated management framework.
Now is the time for financial institutions to rethink governance, risk, and compliance (GRC) with operational resiliency in mind and prepare for the risks and disruptions of the future.