Your Journey to Integrated Risk Management with GRC Solution
Integrated risk management (IRM) allows simplification, integration, and automation of operational, strategic, and IT risk management of process and data. There are various methods to achieve integration with size and complexity being its governing factors. IRM has six important attributes. Continue reading to know about them.
- Strategy – Implementation of the framework together with the improvement of performance through effective governance.
- Assessment – Evaluation and prioritization of risks.
- Response – Implementation of a mechanism to eradicate risks.
- Communication and reporting – Most appropriate means to inform stakeholders about enterprises risk response.
- Monitoring – Checking the effectiveness of risk mitigation and controls.
- Technology – Designing and implementation of an IRM solution.
According to a report from Gartner, 74 percent of global risk management executives state that forecasting risks will be more difficult in the next few years. The evaluation of the governance, risk, and compliance solution (GRC solutions) market has provided with an integrated approach toward strategic, operational, and IT management risks. The evaluation of GRC solutions to Integrated Risk and Management Solutions (IRMS) have provided vendors with an integrated approach to all the fragments of security. The defined segments of IRMS are as follows:
- Operational risk management (ORM)
ORM is the backbone of all the segments as it contains a bit of every segment. This software allows enterprises to normalize and aggregate data from various data sources (internal or external). The internal sources include financial and operational systems while external sources include regulatory alerts and lost event databases.
- IT risk management (ITRM)
ITRM solutions automate IT risk assessments, policy management, control mapping, security operations analysis, and management of incidents. As IT solutions fall under the responsibility of the IT department, the dependency on their work is reduced.
- IT vendor risk management (VRM)
The VRM program helps organizations manage third-party risks. It provides adequate controls of vendor viability security, vendor performance, and data protection. If the enterprises do not comply with these mandates, they can have a significant audit and regulatory repercussions. These issues can undermine the stakeholder value and corporate image of the organization. Solutions in the VRM market range from risk assessment and risk monitoring to its eradication, thus, increasing the reliance of businesses on the market vendors.
- Business continuity management planning (BCMP)
Business continuity management is a process of facilitating, coordinating, and executing activities which ensure the organization’s abilities to identify risks. Identification of risks that lead to business disruptions, implementation of the recovery plans, and recovering business-critical operations are the main aspects of this planning. The BCMP software automates processes such as risk management and business impact analysis which help an organization in implementing a good recovery plan. Various tools of BCMP are used to jump-start an organization’s BCM, improving their overall capabilities.
- Audit management (AM)
The primary role of an auditor is to audit, advice the management, and provide consultation to the process stakeholders. When management and owners are not able to identify risks in a process, it is the role of the auditor to provide independent and objective insight to the risk. The AM market solutions handle this need by automating the internal audit operations. These solutions automate audit planning process, paperwork management, time, issues, and expense management.
- Corporate compliance and oversight (CCO)
The use of compliance management program in organizations is on an exponential rise. Increase in focus on commercial and organizational requirements has made a compliance manager’s role more challenging. The CCO software supports goals and activities of the compliance managers. It provides automated policy development, risk assessment, rationalization, and change management to the project.
- Enterprise legal management
Legal management software applications primarily address the legal issues of compliance departments, corporate secretaries, board of directors, and senior management. They provide support for better documentation, expense management, and information availability. The ELM includes an integrated set of applications which include resource management, e-billing, financial management, legal document management, and process development management.
Enterprises looking for better management of their processes have been leaning toward an integrated approach rather than opting for GRC solutions. The market evolution of GRC solutions to IRMS has not only increased the demand of market vendors but also increased the trust of enterprises toward them. The various methods stated above explain the working process of the IRMS. Organizations opting for a market vendor for IRMS (integrated version of GRC solutions) solutions can visit us at the following link.