The three-year return on investment of Riskonnect’s integrated GRC technology is as much as 280%, according to a new commissioned study conducted by Forrester.

Forrester Consulting recently completed a Total Economic Impact™ study to help organizations quantify the potential ROI of Riskonnect’s GRC solution. The study took an in-depth look at one financial services firm in the U.S. that implemented Riskonnect GRC – including Enterprise Risk Management, Internal Audit, Compliance, and Third-Party Risk Management – to project a three-year ROI.

Previously, the privately held firm relied on spreadsheets to track risks. This approach was extremely manual and exposed the organization to penalties by state and federal regulators, as well as other potential financial losses. The firm also did not have a complete view of its risk exposure because there was no consistent way to report incidents. And a lack of integration across business units made it difficult to see the big picture in a timely manner.

The financial services firm initially rolled out ERM and Internal audit, followed by Compliance and TPRM. The benefits of implementing Riskonnect’s GRC suite include:

  • $1.7 million in labor cost savings. Consolidating all risk-related information in one place while managing the end-to-end process resulted in productivity gains equal to six FTEs.
  • $758,500 in incident-related penalty cost savings. With Riskonnect GRC, the firm could update their risks in real time and continuously monitor the environment to reduce the likelihood of incurring regulatory penalties.
  • $164,000 in improved TPRM workflows. Streamlining and automating third-party information – including agreements, contracts, policies, and access credentials – increased the number of assessed vendors and made the process easier and more efficient.

Costs offsetting the benefits include annual licensing fees of $283,000, one-time Riskonnect implementation costs of $258,000, and one-time customer implementation costs of $142,000.

“Before Riskonnect, we would have to keep a detailed log on any risk and actions taken to reduce it. Once Riskonnect was implemented, we could see immediately that risk had been reduced for a particular business function. This was the first time we were able to present that kind of information.”

SVP, Enterprise Risk Officer
Financial Services Firm
Key Findings
$2.6 million Benefits delivered to the business over three years
$683,000 Costs associated with software deployment
$1.91 million Net Present Value = ROI 280%

Beyond the Numbers

The benefits to the firm extend well beyond those that can be quantified. By replacing spreadsheets with Riskonnect GRC solution, the firm was able to:

Improve real-time risk management. The firm previously had no way of monitoring risks and the environment in real time. Risk information is now readily available and can be easily and regularly updated.

Manage risk more proactively. Lack of transparency with senior executives contributed to a reactive environment. Dashboards and other analysis now helps risk managers and others to be more objective, measurable, and proactive when interacting with senior management.

Gain better insight into business-unit risk management. With Riskonnect, business units were able to focus directly on their risk management issues, compare their risks to other groups, and find ways to improve.

“One of the things that really became apparent to me when with did this [implementation] is that it’s now much easier to integrate information from a lot of other places.”

SVP, Enterprise Risk Officer
Financial Services Firm

Riskonnect commissioned Forrester Consulting to conduct the study, The Total Economic Impact™ of Riskonnect GRC: Cost Savings and Business Benefits Enabled by GRC, December 2021. Forrester conducted an independent financial analysis of the sample company, as well as interviews with the decision-maker, to understand the benefits, costs, and risks associated with that organization’s technology investment.

Download the full Forrester Consulting Study here.