Challenges faced by the automotive industry
The automotive industry is growing at a healthy rate but is prone to many problems. Changing consumer preferences, changing ideas about cars, the introduction of new technologies, increased preference towards driverless and electric vehicles and overhaul of the purchase problems are some of the market-related challenges faced by the industry. The cost structure of many companies in the industry is unstable which makes them sensitive to economic shocks.
Apart from all these issues, there are specific internal challenges faced by any company in the automotive space. Improving efficiency in their processes and activities has always been a primary concern. There are numerous regulatory requirements put forth by the governments that need to be followed. It is a very demanding process for an automotive company with a global presence to manage all of its policies and contacts. Automotive companies also have to coordinate among many vendors and suppliers which highly time-consuming and challenging.
There are also multiple risks in the form of IT and operations risk, policy violations, environment, safety and health, product quality issues and supply chain risks. Initiatives taken in silos to address each of these risks is futile and not cost friendly.
How can GRC help
A GRC (Governance, Risk, Compliance) platform provides a collective solution to all these problems. Managing people, processes, and policies is highly simplified using GRC software. An assortment of modules is created to address the various issues faced by companies in the industry.
Internal operations can be handled efficiently with the governance feature in the GRC platform. GRC platforms also offer compliance features which make managing and arranging contracts easier. There are multiple safety policies that an automotive company should adhere to. Manual management is time-consuming and cumbersome. Using GRC, policies relevant to each category can be classified and managed effectively.
Various other features for audit management, risk management and analysis are also bundled into the software. Automated reports can also be generated for various activities. GRC can also help in establishing a robust framework for quality management and enhance the technical capabilities of a company. Various vendors and suppliers of parts can be managed through the vendor management module.
Impact of GRC on the industry
The automotive industry can derive numerous benefits by using GRC. GRC platforms can add value to the business model of an enterprise. GRC aids in improving efficiency while reducing the cost incurred for audits, compliance and task management. Optimizing their costs is made easier through this. It also gives more power and control by centralizing operations. Data can be stored in a secured manner and frauds can be prevented. The entire process of compliance management is made hassle-free. Identifying, analyzing and mitigating risks on time can help in increased compliance, thus safeguarding the reputation of the company. On the whole, GRC platforms help in streamlining processes and enable companies to compete better at all levels.