What Is GRC Software and Why It Is Vital for Your Business?

• By Roopesh Nair
• 31-03-2022
• Software

A Governance, Risk and Compliance software is becoming very familiar terminology nowadays as most businesses are transforming themselves into digital platforms that could help them sustain in this digital age. Very few people in business realize the role of GRC in business. Very few among them implement GRC in their businesses knowing its real benefits and others do it for some other reasons like as a correction plan for regulatory and legal guidelines. But understanding GRC is very important if one has planned to grow bigger into a world renowned well-structured corporate. There is still room for knowing about the importance of Governance Risk and Compliance software in business.

Every business is made more stable and sustainable using GRC tools. Having GRC software is very essential to achieving long-turn success which completely relies on factors like continuous assessments, corrections, and implementation of corrections. This could not be done with a single click. As a phase of digital transformation, it is always necessary to feed any tool with data to function initially.

Business could not run smoothly always. In the long run, many risks and issues may arise. This could be only mitigated if only there is a detailed risk profile prepared for each business according to their processes.

What factors lead to adopting a GRC tool?

A GRC tool is adopted by organizations as they oversee many risks that may occur internally and externally. Identifying those issues is much essential before implementing a GRC tool into your business. Most common issues that every business faces as a result of not having a GRC program are listed next.

Internal issues:

- Complexity of processes.
- Rapid technological advancements.
- People-related risks.

External issues:

- Competition.
- Rapid developments in business models.
- Growing appetite for risk.
- Government regulations.

All these issues can be eliminated one by one by integrating a smart and intelligent GRC tool, which can give you more control on risk management, compliance management, governance activities and privacy & data protection. By introducing a GRC program or a GRC tool, you can analyze where to focus more to foster your business growth.

What changes a GRC tool can bring to any business?

A GRC tool can bring direct and indirect benefits to your business. As everyone knows, an increased productivity rate is the one important and satisfying benefit that GRC software can draw.

Listing out the benefits there are some direct benefits.

- Transparent and independent governance structures.
- Robust risk management and mitigation systems.
- Improved regulatory compliance.

Now, the indirect benefits a GRC tool brings into your organization is much more interesting to know.

- Builds a strong organizational structure.
- Enhances internal communication.
- Promotes more precise decision-making with a data-driven approach.
- Improved control triggers.
- Link people with processes to reduce people-based risks.
- Develop risk-based thinking to plan for the future.

Affording any GRC cannot save your day and any random tool can bring more harm to your business. Choosing the perfect GRC tool is a bit tough task but easier if you research on the specialists. Some criteria that should be considered while selecting a technology specialist can be discussed further.

What factors are to be considered while choosing a GRC tool?

The technology provider to help you with your best business solution should meet certain criteria, where they must have:

- Extensive industry knowledge
- Maintaining organizational connections
- The ability to analyze Big Data and use it to troubleshoot
- Implement standard best practices tailored to the organization's needs
- Being able to operate vertically from end-to-end.

The above-mentioned factors are important to be satisfied. This is very necessary to:

- Manage business processes
- Facilitate risk measurement and management
- Facilitate timely & accurate decision-making
- Align deliverables with set requirements
- Achieve organizational GRC goals.

One of such best business solution providers to qualify all the criteria is a robot, they provide enterprise management systems with many subscription models and customer customized solutions that are designed for easy to use for business domains, business maturity and industry.

In short and simpler words, having a GRC tool is an added advantage for your organization to eliminate organizational silos as well as risks that restrict you from achieving your objectives. According to Ropes & Gray/The Financial Times Group, 57% of senior-level executives rank “risk and compliance” as one of the top two risk categories they feel least prepared to address. According to Thomson Reuters, Compliance officers rank “continuing regulatory change” as their biggest challenge. All these data show how important the GRC plan is for any business.