A strong governance, risk, and compliance (GRC) solution gives risk managers the infrastructure to link risk with strategy, uncover new opportunities for taking calculated risks, and provide valuable and quick council to leadership.
Having all risk-related data in a single platform enables you to see risk relationships across the enterprise, understand roadblocks, prioritize mitigation options, and make quick and confident decisions that further objectives.
Here are three ways risk managers can leverage GRC software to add strategic value, provide informed council, and help the organization thrive.
Step 1: Automate manual and time-consuming projects.
As the adage goes, time is money. And spreadsheets, manual processes, and static data sources are arguably the biggest time suckers for the risk function.
GRC software automates core processes, routine tasks, workflows and follow ups, drastically reducing the number of hours employees typically spend on data collection, reporting, and other tedious and time-consuming projects. The time saved can then be redirected to initiatives that provide real strategic value.
Instead of chasing down colleagues in other departments for required information – which may be found incomplete or outdated – imagine if your risk team could focus on interpreting data, trends, and the context, and sharing that insight with other stakeholders. The right solution can unleash the talent and capabilities of your team in new ways that will enable the business to prosper.
Step 2: Collaborate and share.
Risk events (and business opportunities) are now multidimensional. Focusing exclusively on the probability and impact of risk doesn’t go far enough. Risk management strategies and approaches need to evolve beyond the traditional heat map to take risk recurrence, duration, and velocity into account.
A single compliance-related risk driver, for instance, could trigger far-reaching consequences across finance, HR, legal, and more, ultimately impacting the organization’s reputation or ability to compete. It’s impossible to take calculated risks, jump into action when necessary, or provide strong council without a clear picture of all variables, how they are connected, and the organization’s overall risk exposure.
Stated more bluntly: Cross-functional synergies and company-wide information sharing are foundational for business growth – and core to a strategic enterprise risk management program. Effective risk leaders break down walls, insist on transparency, understand interconnectivity, and prioritize the big picture – which is impossible to do without the right technology. GRC software works to dissolve siloes by providing centralized, easy access to all risk and compliance data and establishing consistent enterprise-wide processes and controls.
Step 3: Accelerate decisions and capitalize on real-time opportunities.
Risk teams that can’t provide quick and confident guidance may unintentionally increase a different kind of risk: the risk of lost opportunities. Businesses must take on some risk to grow. The trick is to know what risks – and how much – will lead to opportunity instead of failure. With the global pandemic pushing risk management into the spotlight, the ability to offer this strategic counsel to leadership is even more critical.
With GRC software providing real-time data and built-in analytics, risk teams can easily and quickly create and share insightful reports that enable data-driven decisions and action. Executives can use the insight to make informed decisions around how to leverage risk in ways that drive new levels of organizational performance and growth – such as entering a new market or developing a new product line.
Strategic risk management is about much more than addressing what might go wrong. Real value comes from seizing opportunities to take calculated risks that will enrich business performance.