Big Data, Artificial Intelligence, Cloud computing are all commonplace in today’s era. But are we missing out on something much more simple and significant?
In this fast paced era of business growth and integration, it has become essential to mitigate the boundary between business and IT for financial stability and risk management. Integration of your business to cloud, Big Data analytics, Social Media insights are all commonplace by this time and AI seems too far-fetched for small and medium enterprises.
Risk is a part of any business. While it is not entirely possible to eliminate risks, it is possible to reduce risks to a great extent. Risks can be prompted from both internal as well as external factors towards an organization. While external factors have an impact on all the organizations belonging to an industry, internal controls are highly company-centric, negligence to which incurs a lot of indirect costs which remain oblivious to the top management.
A report by KPMG on Risks in business: Internal and external pressures, highlights the Internal factors involved:
- Financial Stability
- Organizational Structure
- Politics and Mismanagement
These factors can be largely controlled by the company (unlike external factors) with due diligence and IT Enterprise Risk Management, saving both indirect costs (from productivity of the employees) as well as direct costs (incurring penalties on compliance). “A new report from Bain & Company, Barriers and Pathways to Sustainable Growth: Harnessing the Power of the Founder’s Mentality, finds that 85 percent of the barriers to profitable growth for the average company are internal and manageable – not external and uncontrollable, such as unfairly advantaged competitors, government regulations, inaccessible technologies and market conditions that do not offer growth opportunities.” While companies have been able to monitor external factors, they are still struggling with monitoring internal root causes about working system in an organization and placing internal controls.
The need of the hour is the integration of internal operations of an organization with IT tools (optimum GRC solutions, as provided by SaaS companies like VComply) to have effective internal controls placed in the company for risk management.
Who needs to do what, at what timeline, in different departments or divisions or work groups, keeping track holistically, all of this takes a lot of time and effort to be tracked manually. From micro to large enterprises, all organizations have an organizational structure (flat or hierarchical) in place, where tasks are delegated to the workforce in order. Now, keeping track of all the responsibilities allotted manually through ledgers is rather cumbersome and forgetful.
GRC solution providers, like VComply, have now come up with fully integrated Risk Management solutions with easy to use interface and customization options to suit the needs of all; small to large enterprises. The compliance tools eliminate the risks caused by internal controls and provide solutions to enhance the financial stability of an organization.Add to favorites