Governance, Risk and Compliance (GRC) plays a crucial role in keeping organizations out of legal trouble. As such, GRC systems are more often than not seen as grudge purchases and something to be done at the least possible cost.
This compliance-based approach, focusing on the negative consequences of not having an effective management system – fines, sanctions, even prison time – overlooks the opportunities and the quick return on investment that well implemented GRC management software can provide.
Implementing a management system drives automation and efficiencies in an organization. Tangible GRC systems’ ROI can be achieved in these 10 ways:
1. Saving time preparing reports and presentations:
In organizations that use non-integrated and manual systems, senior executives spend a great deal of time requesting and consolidating information in order to compile monthly or quarterly reports. If reports are automated and available at the press of a button, their time can be freed up to spend on driving the quality of the processes, rather than clerical data manipulation.
2. Saving time preparing and completing audits
With information available instantly, and the ability to drill down to verify all data at its source, internal audits are more streamlined and time is better spent analyzing rather than gathering information.
3. Audit savings
External audits can also be conducted more quickly and efficiently, because all the information needed to conduct the audit is readily available. This significantly reduces the cost and hassle of conducting external audits.
4. Lower software costs
There is a cost to managing all software systems, whether a database or a mere spreadsheet. Multiple systems inherently cost more. By integrating multiple systems into one, and paying annual license fees for a single GRC management solution that handles multiple functions, instead of multiple separate systems – with their own annual license and administration costs – presents significant savings.
5. Time saved on data recapture
With a centralized, integrated system, there is no need to recapture – and reconcile – information between different systems. This reduces duplication of effort and streamlines processes, making GRC simpler and faster to manage.
6. Better decisions
GRC management software gives organizations easy access to better information which leads to better governance. Having up-to-date trend analysis on hand – and being able to monitor exceptions – allows small problems to be resolved before they become big ones. Management software gives you visibility over performance against strategic objectives, so you can take a proactive approach to risk, rather than a reactive one.
7. Increased performance
Prevention is cheaper than cure. Ensuring risks are mitigated through proper controls and audits of these controls greatly decrease the chances of unwanted events taking place. Leading indicators can be properly monitored to ensure incidents are prevented.
8. Fewer grievances, incidents and loss events
Reducing the severity and extent of grievances, incidents and loss events through better process management adds directly to an organization’s bottom line.
9. Improved productivity of staff
Effective GRC management software allows you to track, and get feedback on, all allocated actions. This engenders a culture of responsibility and prevents tasks that have been set from falling through the cracks, driving continual improvement.
10. Improvement in morale
With GRC management software, staff are freed from the drudgery of maintaining obsolete manual systems. They no longer have to spend additional hours working to complete reports on time. Staff are more productive, less frustrated and more likely to stay with the organization.
The real financial benefit implementing GRC management software lies in viewing risk holistically and not as a tedious compliance check-box. To find out more about how an integrated GRC management software solution will benefit your business, subscribe to our bi-monthly newsletter.
For more information related to GRC systems’ ROI, check out this infographic by the NSC on the ROI of Safety.