GRC leveraged by RegComTech® not only protects but creates stakeholder value, provide risk intelligence and compliance management that lead to actual profits
When it comes to Governance, Risk and Compliance (GRC), many organisations are at a crossroads due to huge expenses in compliance and risk activities. At the same time, The Board of Directors and management understand the responsibilities and importance of implementing effective GRC processes and systems to deal with a growing range of risks and regulations.
The challenge lies in the sheer complexity of the concept.
Several reports show that annual cost of GRC amount to an average or more than 6% of the company’s annual revenues. Almost two-thirds of respondents considered GRC “convergence” a cost, rather than an investment, and only 31% said that they were effective at quantifying the benefits of these activities. Eighty-nine percent say that the cost had increased over the past two years, while 84% expected it to grow further in the next two years. It goes without saying, that this increase in GRC costs cannot continue.
Therefore RegComTech® builds an internal business case for GRC to justify the matching costs compared to the tangible value and increased profits in establishing a GRC program.
The Business case for RegComTech
Every year, organisations across industries are hit with thousands of new regulatory notices that impact business operations and strategy. Just reading, understanding and analysing the requirements for implementing the new compliance processes and allocating the new resources can be extremely time-consuming and costly. A lot of energy is used the organisation and management are exhausted by simply keeping track of these new regulatory requirements.
RegComTech® addresses the multiple internal compliance requirements to deal with HR, product quality and health and safety. Addressing these additional internal and external obligations is a demanding challenge for many organisations. RegComTech® addresses it by involving GRC.
The roadmaps and frameworks of RegComTech® are structured as a journey so that management does not look at GRC as a burden but a tool to help mitigate risks, ensure compliance and drive business value and profitability.