8 exciting GRC trends of 2023
“Today’s challenge is not about finding needles in haystacks but snowflakes in snowstorms” said Mike Loginov, Chief Strategist at EMEA, HP at the GRC EU summit.
GRC (Governance, Risk, and Compliance) is one of the fundamental requirements of any organization, regardless of its size. GRC provides a structured approach to aligning IT with business objectives. Additionally, it also helps companies effectively manage security risks, reduce costs, and meet compliance requirements.
Keeping abreast of the latest GRC trends is the need of the hour. GRC software solutions to emerging cybersecurity challenges, these trends will empower you to navigate the complexities of governance, risk, and compliance with confidence. So, let’s embark on this journey together!
Trend #1: The rise of integrated GRC solutions
Remember the days of managing governance, risk, and compliance with separate tools and fragmented approaches? Well, 2023 is all about integrated GRC solutions that bring everything together under one roof. With comprehensive platforms like ServiceNow GRC, you can streamline processes, automate workflows, and gain real-time insights.
Now’s the time to work smarter, not harder, as you enhance efficiency and effectiveness in managing governance, risk, and compliance by embracing the power of automation.
What any GRC tool does for you is it begins to enable you, and make some of these things easier. It begins to take away some of the tasks that you may have been tracking that were very manual, and it helps you begin to automate some workflows, and enhance that experience for all the people involved. The more you enhance the end user experience in risk, the more likely they will participate in the process.Andrew Ruse, President of Field Operations, LogicGate
Trend #2: Regulatory focus shifting toward operational resilience
In recent years, regulators in the US and abroad have begun to strengthen regulations and focus on operational resilience. Financial services businesses of all types are moving toward systems that will enable them to resist, absorb, and recover from, or adapt to adverse events.
The key difference between risk management and operational resilience is considering the different outcomes and being ready for them rather than trying to make an exact prediction.
Trend #3: The convergence of GRC and cybersecurity
69% of the world’s countries now have data protection and privacy legislation in place. This is why data privacy is a major challenge for GRC experts, especially in these times. Enterprises must be very careful in order to comply with data privacy requirements such as the General Data Protection Regulation (GDPR), the California Consumer Privacy Act (CCPA), and others.
It’s now time to embrace the powerful convergence of GRC and cybersecurity. Strengthen your defenses, minimize risk exposure, and enhance your compliance posture.
According to research by Salesforce, 84% of users are more loyal to companies with strong security controls.
Trend #4: ESG (Environmental, Social & Governance) reporting
ESG has been a popular acronym across many industries in recent years, and it will only gain more traction in 2023. Within impacted industries, regulators will expect companies to firm up their ESG reporting processes.
In some industries, ESG guidelines may have already become more measurable. If a company does not follow regulations, it could face negative impacts on its brand reputation for a period of time.
What we communicate in our ESG reports and statements, our code of conduct, our policies, our values and ethics—that’s a reality in the organization. If you’re communicating to the world that this is what your organization’s about, but your actual internal practices and themes are different, ESG is exposing the lack of integrity in the organization.Michael Rasmussen, GRC Analyst & Pundit at GRC 20/20 Research, LLC
Trend #5: Empowering automated GRC practices
A recent EY Global Board Risk Survey found that 69% of businesses plan to increase their level of investment in data and technology for risk management in the next 12 months. Those organizations that embark on a digital transformation of their GRC processes will benefit from a large reduction in the time spent on the administrative tasks associated with GRC.
Solutions like ServiceNow GRC break down silos to manage risk and strengthen compliance across the business. Automated solutions unify GRC on a single platform, rather than a combination of ad hoc or manual solutions.
Management consulting firm Ernst & Young (EY) suggests that businesses need a “‘single source of truth’ that defines one single risk and compliance management approach for the entire organization.”
Trend #6: Emerging regulatory changes
Regulatory landscapes are ever-changing, and it’s crucial for you to stay proactive in adapting to new requirements. A few examples include, Sarbanes-Oxley Act (SOX), the Health Insurance Portability and Accountability Act (HIPAA), and the Foreign Corrupt Practices Act (FCPA).
You need to keep a close eye on regulatory changes across various industries. By staying informed and partnering with regulatory experts, you’ll ensure that your GRC frameworks remain up to date and compliant with the latest regulations.
Trend #7: Enhancing risk analytics with data science
Data science and analytics are revolutionizing the GRC space, and it’s an exciting time for us to embrace this transformation. By harnessing the power of data, you’ll gain deeper insights into risk profiles, detect emerging trends, and make data-driven decisions.
Leverage advanced analytics tools like ServiceNow GRC to enhance your risk assessment capabilities, improve decision-making processes, and optimize resource allocation.
Trend #8: Cross border obligations
In an ever-changing regulatory landscape, organizations are finding it increasingly difficult to keep up-to-date and track the vast number of documents that must be submitted to regulators and inspectors across state and federal governing bodies.
Regulatory change will continue to be a huge challenge for GRC teams in 2023, as changes to regulations are occurring at an unprecedented rate and scale around the world, and keeping up with such a large volume of complicated requirements can be extremely difficult.
Many organizations are turning to alternative ways to manage regulatory change, with AI and GRC tools.
Staying informed about these exciting trends is the only way to provide the right guidance to organizations seeking effective governance, risk management, and compliance practices. This involves making investments in compliance, data protection, and cybersecurity, and creating strategies for effective risk management and GRC integration.
Together, we’ll navigate the complexities of governance, risk, and compliance with confidence, fostering growth and success in a rapidly evolving business landscape. Cheers to our shared journey!
For a more detailed conversation about the latest GRC practices, you can reach out to our experts who’re just as passionate about GRC as you.