Governance, risk, and compliance (GRC) is a structured approach that helps organizations achieve business goals, manage risks, and comply with regulations. Organizations need insight into how well they’re doing this.
“GRC maturity” measures how well an organization integrates these three areas. Knowing your GRC maturity level helps you identify areas for improvement and develop a roadmap for enhancing your program.
Here we’ll describe practical steps and real-world insights related to GRC maturity.
Signs Your Organization Needs a GRC Maturity Assessment
How do you know whether a maturity assessment is overdue in your organization?
You may be struggling to keep up with an ever-increasing number of regulations or an ever-changing regulatory environment. You may also see that your organization lacks the analytics needed to measure GRC’s success effectively.
The lack of consistent processes is another strong indicator that a GRC maturity assessment may be needed.
Preparing for the Assessment
First, it’s important to assemble the right team to prepare for a GRC assessment. A GRC lead, responsible for managing the overall program, might have defined roles and responsibilities. Other key players will include security leadership and project managers who can develop relevant plans and budgets in support of GRC.
Next, set clear objectives for the assessment. The assessment will likely consider criteria such as the effectiveness of policies, the use of automation to support GRC processes, how well GRC programs align with business objectives, and how well employees are trained in GRC priorities.
From there, you can start gathering preliminary data. You’ll gather corporate policies and procedures, board meeting minutes and resolutions. Risk assessment reports and compliance frameworks will also inform the process, along with IT policies and procedures.
Conducting a Self-Assessment
A self-assessment starts with a GRC maturity checklist. The self-assessment checklist aims to measure how well the organization manages its GRC activities and can help identify gaps, prioritize improvements, and benchmark performance against industry standards.
There are some key questions to ask in each area. In governance, for example, you’ll look at how governance is structured in the organization, who the key stakeholders responsible for governance are, and how roles and responsibilities are defined and communicated.
Regarding risk, you’ll want to know what processes are in place to identify and assess risks, how risks are categorized and prioritized, and how the organization has defined its risk appetite and tolerance levels.
On the compliance front, you’ll ask questions like: What regulations and legal requirements apply to the organization? How does the organization stay informed about changes in regulatory requirements? To which compliance frameworks and standards does the organization adhere?
To gain a comprehensive view, you’ll need to involve multiple departments. Strong messaging from leadership will help drive buy-in. It may also help to appoint a GRC champion, or steering committee made up of leaders from key departments.
Evaluating Your Findings and Taking Steps Post-Assessment
With the data in hand, you’ll need to analyze and interpret it to understand your GRC maturity level. In doing so, you’ll likely identify strengths and areas for improvement.
The evaluation should drive the development of an improvement plan based on the assessment results. That plan, in turn, will lay out the organization’s short-term and long-term GRC goals.
Maintaining and Enhancing GRC Maturity
Once you’ve reached a level of GRC maturity, maintaining and enhancing that position will require ongoing effort. This is supported by regular reassessment and continuous improvement, which ensure the organization can identify areas in need of improvement and make the needed adjustments.
Organizations can support this by building a culture of compliance and risk awareness. A compliance culture helps to establish a shared understanding of the important role GRC plays in organizational success.
Several tools and resources can support ongoing GRC management. These may include GRC platforms and software solutions that integrate GRC activities. Policy management tools help too, supporting efforts to create, review, distribute, and manage policies and procedures.
External resources and frameworks may include ISO certifications for risk management and information security, and certifications from the NIST, the National Institute of Standards and Technology.
Benefits of Having a Professional Assessment
A professional GRC (governance, risk, and compliance) assessment can help an organization identify potential risks and design a framework to address them. This helps to identify gaps in controls, improve processes, and drive ongoing success in GRC.
Ready to learn more about optimizing GRC? Contact the experts at Insight Assurance
