Governance, Risk and Compliance – The 3 Musketeers of Regulation
By Stephen Shepherd, Marketing −
Up-to-date compliance regulations help with risk management.
A recent IBM study analyzed the progression of governance, risk and compliance (GRC) systems across more than 130 different firms. According to IBM, GRC platforms “provide a one-stop shop for all of a firm’s regulatory reporting and enforcement needs.” They are becoming more widely implemented in the financial sector not just for their time efficiency, but also for their unique ability to predict scenarios that could affect the course of the firm.
The Challenge of Change
The survey’s first topic states that the top challenge for the firms’ risk organizations is implementing regulatory demands. Such demands from governments and other organizations are constantly changing and becoming more complicated. The study concludes that GRC solutions are the best-equipped strategies for dealing with such changes.
Compliance System Out of Date
The current most widely used GRC system, though by a shrinking margin, is the use of spreadsheets, which the study mentions is relatively inefficient and time consuming. Many risk officers have the arduous task of controlling an overwhelming amount of constantly shifting data and managing who has access to and control over it. This makes it inherently less secure, being more subject to human error and corruption.
GRCs Not the Only Solution
As IBM study claims, GRCs are marvelous solutions for organizing, standardizing and managing data and conforming it to the hierarchy of any firm. However, one of the limitations of this study is that more than 40 percent of the firms surveyed have fewer than 1,000 registered employees.
Clearly, large companies would have a much greater necessity for an integrated risk management platform than smaller firms. The system would most likely not be cost-efficient for many small firms.
In smaller firms that are not able to develop GRC platforms in their current stage of development, the latest lie detector service, EyeDetect™, could aid employers by giving theme peace of mind with respect to the integrity of their risk officers.
Peace in the Present Promotes Hope in the Future
EyeDetect can detect deception with a simple, non-intrusive test that poses a series of true or false statements. The subject in question is asked to answer truthfully and if deception occurs, it is recorded by an optical scanner and unique technology with an average of 85 percent accuracy.
Like GRCs, EyeDetect not only helps a company identify and solve existing problems, but also aids managers in preventing future lapses of honesty. This technology can help protect a company’s reputation and integrity by allowing officials to identify those in positions of trust who cannot be trusted. Those who are trusted will then be the ones to guide the company through the future challenges of change and growth.
