/GRC/Project Management
An SAP-sponsored study by the Economist Intelligence Unit has found that while many banks hesitate to implement enterprise-wide solutions for governance, risk, and compliance (GRC), more banks are including GRC initiatives as part of a strategic view of their financial processes.
“A sober appraisal of banks’ efforts will reveal that cost considerations have limited the extent to which manual processes have been eliminated and, far more importantly, that sophisticated GRC isolated within lines of business or internal control functions is no substitute for an integrated, enterprise-wide approach to risk management,” according to the study’s conclusion.
The primary concern for the 71 banks surveyed was a fragmented approach to managing complicated financial processes. Half of the respondents complained of too many manual processes, while another 38% cited inconsistent methodologies and 25% cited poor visibility and accountability, overaggressive controls, and application incompatibility. The banks were not asked for details of which, if any, tools they used to automate GRC functions.
Most of the bankers agreed that a primary benefit of automating GRC would be the elimination of errors due to manual processes. Only 31% cited cost reduction as a driver.
The most significant barrier to implementing GRC automation was cost. More than half (60%) of respondents cited the cost of implementation as the top barrier to implementation. Only 8% of executives were satisfied with their current systems.
To download a complete copy of the report, visit the Economist Intelligence Unit at https://bit.ly/1bHUvT.
Davin Wilfrid
Davin Wilfrid was a writer and editor for SAPinsider and SAP Experts. He contributed case studies and research projects aimed at helping the SAP ecosystem get the most out of their existing technology investments.
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