In modern organisations, effective management of governance, risk, and compliance (GRC) is crucial to ensure that you comply with rules and standards. This became obvious with the introduction of GDPR in 2018. Many companies embarked on designing their own custom made processes in complex systems, which few have really mastered since.
But times have changed.
Today, authorities and companies have developed best practices, which new and more comprehensive GRC systems can support. The overview, structure, and anchoring that GRC systems create, increase the efficiency of compliance work. Therefore, many organisations are searching for a contemporary GRC system that can guide them smoothly through the jungle of regulations.
- Many companies which consider changing compliance systems ask how much time they allocate to maintaining the new system. My answer is always that you should aim for a system that requires minimal maintenance. The system should not passively wait for you to maintain it. It should help you and tell you how to do it, says Gilli Haraldsen, Co-founder and CCO at Wired Relations. He continues:
- By replacing the old platforms with a GRC system based on best practice, you can look forward to a time saving of at least 40 percent, because it is far more user-friendly, and the ownership becomes easier to anchor within the organisation.
Choosing the right GRC system is an important decision that requires careful consideration. How do you make sure that the system creates value for your entire organisation?
Here are three crucial factors to consider when choosing a new GRC system:
1. Test it on your own
One of the primary considerations when choosing a new GRC system is its user-friendliness. The system should be intuitive and easy to use. A user-friendly interface and an understandable structure increase the chances of a successful implementation.
A rule of thumb is that the system has a good chance of success if compliance officers in your organisation intuitively understand the system without prior training, says Gilli Haraldsen.
- It's easy to test. Tap a compliance officer on the shoulder and ask them to spend an hour navigating a free version of the system. Then talk about the experience and assess whether the system is right for you.
2. Can the system be anchored in your organisation?
A GRC system should not only be a tool for compliance specialists. To create real value, it must be anchored throughout the organisation. It is therefore crucial to consider whether the solution allows for the involvement of various functions and areas of responsibility.
- Everyone in the organisation working with suppliers, workflows, and systems should be able to use the GRC system effectively. If they can, you increase the chance that the system will be anchored in the organisation and provide real value to the company. The best GRC systems are those that manage to activate the most users in relevant compliance tasks, says Gilli Haraldsen.
The anchoring of the system can be measured by the number of active users on the platform. The more active users, the better the anchoring. Take a look at how many users are actually using your current system, and assess whether the share can be increased with a platform whose core function is anchoring.
3. Does the system make your organisation more mature?
When considering changing to a new GRC system, it is important to assess whether the platform has the potential to mature your compliance processes. It's not just about technological maturity, but more about meeting best practices and adapting to changes in the business - and the regulatory landscape.
- Often, a lot of knowledge is accumulated with the individual compliance officer, and if they change jobs, the company suddenly finds itself in a difficult situation. At the same time, compliance experts are not abundant, and those who are, do not enjoy cleaning up old systems and structures they do not understand. Therefore, it is crucial to avoid being trapped in systems that are person-dependent or difficult to access, says Gilli Haraldsen.
Think about whether the new system matures your company's approach to compliance and reduces the dependence on individuals. Perhaps conduct a risk analysis of using the system, and use it to make your final decision.
The final choice
In the end, the choice of the right GRC system is crucial to ensuring that your governance, risk management, and compliance processes are effective. By focusing on user-friendliness, anchoring in the organisation, and increasing the organisation's maturity, you can make an informed decision that best supports your company's needs and success.
Read our e-book, and learn more about how to choose the best GRC system for you.
