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Regulatory and compliance requirements, specifically internal and external governance, risk and compliance will only increase with time. GRC brings with itself a host of pain points or problems faced by stakeholders and service providers. Let us look at some of these GRC challenges faced by companies and clients.

Several complex financial business processes are linked to complex IT systems. Manually carried out operations and a paper-driven system only add to the complexity. Banks, for example, make it difficult for IT providers to cooperate with them.

The reporting cycles of compliance have been reduced from what they were before. In fact it has changed from once a year to real-time reporting. This acts against the interest of businesses and GRC providers as the number of regulations, controls and standards applicable to organisations is ever increasing. 

Another is the security of confidential data. Organisations dealing with sensitive financial information hires managers and makes use of cloud computing platforms  to manage their compliance. This puts the security of their data in jeopardy. That is why careful selection of the IT service provider,tight cyber security and measures to protect private data are among the  top priorities for most organisations today..

GRC challenges

The info-graphic explains how a proactive approach differs from reactive approach in terms of security breaches & compliance costs. Thomson Reuters (in a survey in taken in the year, 2015) predicts that expenditure on compliance would increase by 60% in North America and 75% in Europe. And this does not include the cost of risk management solutions and the installation of data governance platforms which form a substantial  part of a company’s costs.

Conclusion

With predictions like these, a proactive approach is the need of the hour. Large institutions can implement a single multipurpose platform across all its businesses and functions. It minimizes data duplication and the resources needed to monitor governance and risk assessment in the organisation. This will drastically cut down on compliance costs and costs arising from non-compliance such as payment of monetary penalties.

Maintaining tight controls around critical company data is absolutely necessary. One way companies can achieve this is by checking the level of  data security provided by the GRC platform providers. Most platforms provide services via cloud, which has proved to have enhanced the performance of various organisations in terms of speed and accessibility. But it also raises the issue of data protection. And that is why an organisation must always choose a platform with a high level of encryption to secure company data from leakages.

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