Risk management – why centralize your GRC data?
Sword GRC Blog
Risk management - why centralize your GRC data?
Governance, risk and compliance (GRC) data provides vital business intelligence, but one of the greatest obstacles that GRC professionals face when it comes to risk management is the ability to access the right information – accurate, up-to-date, complete data – when it is needed, to inform strategic decision-making.
It’s often the case that data sources are spread out across the enterprise, with data silos resulting from manual data collection, processing and analysis undertaken within different departments or functions. There may be GRC legacy systems in place for different tasks, but without interaction and automation, it’s a time-consuming and laborsome process for GRC personnel to assemble and analyze risk management and GRC data effectively. And it goes without saying that there can be a hefty price to pay for missing insights, failing to mitigate risk events or unfulfilling your organization’s regulatory or compliance requirements.
KEY BENEFITS OF CENTRALIZATION – A SINGLE SOURCE OF GRC ‘TRUTH’
- Enhanced data governance – regulators demand high quality, accurate and timely data. The onus is on organizations to be able to enable assessment based on data integrity ensured by good governance and stringent verification and validation processes. In an increasingly complex regulatory environment, in which business accountability and transparency are paramount, centralized GRC data helps drive efficiencies in data quality management.
- One version of credible information – one source of GRC data ends confusion, providing a trusted ‘snapshot’, one true version of the organization’s GRC landscape in real-time. An integrated data platform drives alignment and clarity – there’s just one version of loss data, and only one set of metrics on controls’ effectiveness. When everyone is aligned and on the same page, better decisions can be reached for managing risks and capitalizing on opportunities arising from risk management as they present themselves.
- GRC inter-connectivity becomes apparent – centralizing GRC data provides a clear picture of how governance, risk and compliance data links up. Chances are you have controls and key risk indicators (KRIs) in place for each of your identified operational risks. These same risks may be connected to compliance policies and audit records and/or your organization’s operational resilience processes. Visibility into the connections between data not only drives insights, but underpins better decision-making.
- Better conclusions drawn from the ability to drill deep into data – if all GRC data resides centrally, GRC personnel have the ability to get to the heart of governance, risk management and compliance issues swiftly and efficiently. What’s more, leadership can arrive at sound decisions informed by data from a trustworthy source.
- Supports cultural evolution and change management – enterprise-wide alignment and a shared understanding of an organization’s risk appetite and cultural goals are made possible through the centralization of GRC data. One ‘single source of truth’ makes success (or indeed failure) in attaining desired project and business outcomes apparent to all – a basis from which cultural change initiatives can be implemented or developed within the organization.
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