GRC 2020 Report
Key Takeaways
⇨ Organizations often fail to monitor and manage controls effectively in a dynamic and distributed business environment, leading to costly and avoidable governance, risk management, and compliance (GRC) failures.
⇨ Siloed and manual approaches to internal control management result in inefficiencies, lack of visibility, and increased risks, underscoring the need for a unified, automated platform for monitoring and enforcement.
⇨ Pathlock provides an integrated business controls automation platform that enhances efficiency, effectiveness, and agility in managing internal controls across various systems, processes, and transactions, offering real-time visibility and risk remediation.
Monitor, Respond, and Automate Effectively
Dynamic & Distributed Business is Difficult to Control
Organizations fail to monitor and manage controls effectively in an environment that demands agility. Too often internal control management and enforcement is a periodic exercise only, reviewed and updated annually or quarterly at best. Outdated, manual controls result in inevitable failure of governance, risk management, and compliance (GRC) that provides case studies for future generations on how poor internal control management leads to costly, time consuming, and avoidable material weaknesses or significant deficiencies at many organizations. Improperly implemented controls can turn into a drop in market share or loss of consumer confidence, even for those with strong brands.
GRC is a “capability to reliably achieve objectives [GOVERNANCE], while addressing uncertainty [RISK MANAGEMENT], and act with integrity [COMPLIANCE].” Internal controls are a critical foundation to all three aspects of GRC and a key component to all three lines of a defense in depth strategy. Controls aid the organization in reliably achieving objectives, managing uncertainty by mitigating risk, and are a critical part
of proving compliance obligations and enabling the organization to act with integrity. Good internal controls are the foundation upon which predicable business behavior, transactions, access, and processes rely. Gone are the years of simplicity in business operations. Digital transformation is accelerating change in risks, regulations, globalization, employees, distributed operations, competitive velocity, technology, and business data – encumbering organizations of all sizes. Keeping this risk, complexity, and change under a reasonable
level is a significant challenge for boards, executives, business owners, as well as GRC professionals throughout all levels of the organization. This challenge is even greater when internal control management is not a consistent, continuous, and monitored process in the organization – providing a real time view of these risks as they evolve and quantifying the financial impact when they materialize. Organizations need to understand how to design effective controls, implement them, and continuously review whether the
risks they were designed to control are effectively mitigated.
Explore related questions
Learn more with Pathlock.
Premium
