Why the change and why now?

In a rapidly evolving corporate landscape, once effective Governance, Risk, and Compliance (GRC) frameworks are being challenged by increasingly complex and sophisticated global risk events. This evolution has sparked a crucial question: Why are new frameworks necessary when the existing GRC systems were previously deemed sufficient? This article seeks to explore this paradigm shift, and explores the emergence of agile GRC frameworks as a response to these new challenges.

Traditional GRC models, known for their rigidity, were adept at addressing known risks through resiliency and efficient incident response. However, the dynamic nature of modern risks necessitates a more proactive and anticipatory approach. Agile GRC steps into this arena with the primary goal of predicting and preventing incidents before they occur, thus offering a transformative perspective on risk management. This article will examine the imperative for such agile frameworks in an environment where preventing incidents is as crucial as responding to them.

What is ‘agile’ about?’

Agile, a concept that revolutionised the software development industry, extends far beyond its initial domain, embodying a philosophy that prioritises collaborative product delivery above all else. This innovative approach was crystallised with the publication of the Agile Manifesto in 2001, marking a significant shift in working methodologies. Agile’s adaptability and effectiveness quickly resonated with various industries, proving particularly apt in today’s rapidly changing environment.

At its core, Agile is defined by four guiding principles. Firstly, it emphasises the importance of individuals and interactions over rigid processes and tools, advocating for a more human-centric approach. Secondly, it prioritises customer collaboration over strict contract negotiations, fostering a more flexible and responsive relationship with clients. Thirdly, Agile focuses on delivering functional products or services, rather than getting bogged down in extensive documentation. Lastly, it champions the ability to respond to change over adhering to a fixed plan, thus enabling a more dynamic and adaptable workflow. These principles collectively encapsulate what Agile is about: a flexible, responsive, and people-focused approach to work.

Agile GRC

Agile methodologies in GRC represent a significant evolution from traditional GRC frameworks. This shift is driven by the need for organisations to be more responsive, adaptable, and proactive in the face of rapidly changing risk landscapes. Agile GRC frameworks integrate the principles of agility – such as flexibility, collaboration, and iterative progress – into risk management and compliance processes.

The primary appeal of Agile GRC lies in its ability to foster continuous improvement and adaptability. By incorporating iterative cycles, organisations can frequently reassess and recalibrate their risk management strategies, ensuring they remain relevant and effective in a dynamic environment. This approach contrasts starkly with the static nature of traditional GRC frameworks, which often struggle to keep pace with the fast-evolving risk scenarios of the modern world.

Agile GRC also emphasises collaboration across different departments, breaking down silos and promoting a more holistic view of risk and compliance. This integration ensures that responses to risk are not only swift but also comprehensive, encompassing various perspectives within the organisation.

Furthermore, Agile GRC frameworks prioritise direct stakeholder engagement and real-time feedback, enabling organisations to respond rapidly to changes in the regulatory landscape or operational environment. This responsiveness ensures that compliance is not just a box-ticking exercise, but a strategic advantage.

What’s preventing some companies from moving forward?   

The hesitancy of companies to embrace Agile GRC frameworks, despite the growing complexity of risk environments, is rooted in three primary misconceptions. These fallacies, deeply ingrained in the traditional approach to GRC, hinder the transition to more agile methods.

Firstly, there is a belief that the true business impact of risk is unquantifiable. This notion is dispelled by agile GRC programs, which, through advancements like auditing software AI, offer enhanced capabilities to analyse past and current risks, thereby enabling a more accurate quantification and strategic planning to avoid repeated mistakes.

Secondly, the idea that risk cannot drive business decisions is challenged by agile GRC. By adopting a more proactive stance, companies find that effective risk management becomes a motivator, leading to fewer risk events and better overall outcomes. Agile GRC transforms risk into an active component of strategic decision-making.

Lastly, the assumption that preparing for unknown risks is impossible is addressed by agile GRC’s capability to quickly sort and analyse the latest risk data. This enables organisations to form an aligned and responsive risk management strategy, effectively prioritising and preparing for future risks.

In reality, agile GRC not only counters these misconceptions but also brings additional benefits such as breaking down silos, improving communications and accelerating response times.

So, what does agile GRC look like in practice?        

Every organisation is different, in terms of its regulatory framework, industry and level of GRC maturity. So, there cannot be one accepted approach for all businesses.  However, there are some useful descriptors that can illustrate what agile GRC can look like.  

Agile GRC is faster

Agile GRC marks a significant shift from traditional models, offering a rapid and cost-effective implementation process. Unlike traditional applications, where configuration costs can be up to five times the software license fee, Agile GRC is implemented at least 50% faster, significantly reducing total cost of ownership and minimising business disruption. It also accelerates the establishment of GRC capabilities. Furthermore, Agile GRC enables quicker feedback on access simulations and process changes, allowing for prompt and efficient adjustments, thus embodying a ‘fail faster’ approach for timely improvements.

Agile GRC is dynamic

Agile GRC differentiates itself with its dynamic and adaptive nature, a departure from traditional GRC tools reliant on static rule sets. Traditional GRC assumes infrequent changes in business processes, but the swift pace of modern business often renders these rule sets outdated, leading to frustration and reduced buy-in from business users. In contrast, new generation GRC tools embrace the fluidity of business processes, employing dynamic rule sets enhanced with machine learning and crowdsourcing approaches. This includes gathering rule set changes directly from business users, supported by intuitive visualisations. Such adaptability keeps GRC tools relevant and business users actively engaged, aligning with the ever-evolving business landscape.

Agile GRC is future-proof

Agile GRC stands out for its ability to offer continuous delivery in an evolving technological landscape. As SAP extends its functionality to cloud-based platforms like SuccessFactors, Ariba, and Concur, and as customers increasingly integrate third-party solutions such as Salesforce.com and WorkDay, the need for GRC solutions to adapt is paramount. Agile GRC is future-proof, designed to seamlessly analyse access risks across traditional SAP systems (ABAP), SAP’s cloud solutions, and various third-party solutions, ensuring comprehensive risk management in a diverse and changing tech environment.

Agile GRC is dependable

Agile GRC streamlines risk management by leveraging historical data to establish trust relationships, transforming it into a trusted tool in GRC practice. This approach enables practitioners and business users to concentrate on exceptions rather than routine tasks. For instance, Agile GRC monitors transaction usage, flagging unusual transaction codes, and tracks user access points, alerting to any activity from unrecognised terminals. Such intelligent monitoring reduces time and effort in managing access risks, making Agile GRC a dependable asset for organisations.

Agile GRC is accessible and customer-focused 

Agile GRC adopts a user-centric approach, recognising the importance of engaging business users by placing them at the heart of the process. It translates complex GRC jargon into accessible language, enhancing user understanding and ownership. This is further supported by intuitive tools, such as business process visualisations, which help users contextualise and comprehend risks in a more relatable way, thus making Agile GRC not just a tool for experts, but an accessible asset for all business users.

Agile GRC is connected

Agile GRC distinguishes itself through its connectedness, facilitating integrations with a variety of applications from related fields. This approach enables a more comprehensive GRC offering by linking with Identity Access Management, Enterprise Risk solutions, Process Control, and Business Process Mining solutions. Embracing the API economy, Agile GRC allows organizations to tailor their technology ecosystem to fit their unique business needs, moving away from the traditional one-size-fits-all model. This bespoke ‘one size fits one’ approach ensures that each organisation’s GRC system is precisely aligned with its specific requirements and scenarios.

In conclusion, the adoption of Agile GRC frameworks marks a significant shift in managing governance, risk, and compliance. By embracing agile methodologies, organisations can enhance their flexibility, responsiveness, and adaptability, crucial for navigating the rapidly changing business landscape. Agile GRC thus emerges as a vital tool for contemporary risk management and strategic decision-making.