4 Effective GRC Strategies for a Complex Business Landscape

Understand the Organizational GRC Profile

Before embarking on developing a GRC strategy, organizational leaders must understand the risk profile. The level of risk exposure is tied to the specific business sector, with regulated industries such as financial services and healthcare often exposed to heightened risks. Additionally, the global footprint and the extent of operations across different regions, each governed by distinct laws and regulations, are other critical factors.

It’s not only the immediate threats; business leaders must proactively identify potential risks that might emerge in the near- to mid-term. In this context, scenario planning and stress testing become paramount. Organizations can seek guidance from their respective trade bodies and professional associations, drawing upon examples of best practices. Furthermore, aligning with recognized and suitable security frameworks can establish a robust foundation for a resilient GRC approach.

Create an Integrated & Effective Risk Management and Compliance Framework

As impending regulations, including the proposed UK SOx compliance, loom, organizations must adopt a comprehensive framework that strengthens internal controls.

To implement a GRC strategy effectively, every department within the organization must operate cohesively and seamlessly integrated to mitigate risks and ensure compliance. This transforms basic risk management into a robust system that not only safeguards the organization's operational and financial stability but also establishes a dynamic, responsive plan during times of crisis.

This undertaking involves implementing innovative risk and compliance programs that keep up with changes in regulation, technology and relevant markets. Leveraging data-driven audit intelligence means more accurate and timely reporting, while Artificial Intelligence (AI) can provide deeper insights that lead to proactive warning indicators. This approach allows finance leaders to anticipate risks and take preventive action rather than managing them reactively. In times of challenge and uncertainty, businesses can achieve greater resilience through risk-informed embedded models.

Drawing upon a wealth of expertise cultivated through in-depth consultations with clients and industry experts, WNS has curated an advanced, AI-driven Risk and Controls Implementation Framework. Tailored to serve as a pivotal foundation for enterprises embarking on their GRC transformation journey, this framework presents a meticulously structured approach to streamline and elevate internal control mechanisms.

These integrated risk management and compliance frameworks can help businesses anticipate risks, adapt quickly to mitigate them and safeguard their assets by preventing fraud. Ultimately, they enable greater cost efficiency and reduce revenue leakages through robust internal controls and policies.

Harness the Right Technology

To develop these GRC frameworks, organizations must ensure they adopt the latest technological transformation solutions. These technologies can deliver risk and control frameworks that include financial reporting. They can conduct a diagnostic review of governance frameworks and structures, perform risk assessments and prioritize actions. They can also create a Risk Register or inventory and facilitate risk and control self-assessments.

Businesses need technologies that can assess procedures and practices against regulations such as the Sarbanes-Oxley Act and can carry out quality testing and deficiency management. Their technological solutions should be adept at designing and implementing fraud prevention controls for present and future risks.

Finance leaders must leverage solutions such as intelligent automation and predictive / prescriptive analytics to build smart R&C functions. These technologies can provide continuous assurance and facilitate high-impact reporting and fraud analytics. Moreover, they can also support the implementation of GRC workflow tools.

AI can autonomously generate relevant accounts and conduct self-assessment reviews. Similarly, it can close reconciliations by applying quality parameter validations and detect fraud and revenue leakage. Concurrently, technologies like Generative AI (Gen AI) can provide insightful commentaries and summarizations of findings, enhancing accessibility and comprehension.

Embed GRC in the Organizational Culture

As AI and other technologies carry out mundane tasks, freeing human resources for strategic activities, organizations must look to integrate GRC into their cultural fabric. This shift involves placing integrity and ethical conduct at the heart of decision-making.

While new technologies streamline GRC implementation, they also elevate it beyond a mere box-ticking exercise. They provide detailed, accurate and timely data on risk and compliance, which can inform decision-making across the business. Instead of being viewed as a challenge, risk and compliance can be regarded as an opportunity to enhance various aspects, from financial management to sustainability.

Alongside an increasingly complex regulatory environment, businesses must manage challenges such as inflation, technological disruption, unpredictable supply chains and the battle for talent. Those who leverage new technologies and domain expertise to address their GRC issues will not only mitigate risks and improve compliance but also position themselves better to tackle other business challenges. This strategic approach will allow organizations to forge a path toward a more promising future.