How can businesses move towards an Agile GRC strategy

Transitioning towards an Agile GRC strategy signifies a pivotal change in how governance, risk and compliance are managed. Embracing agile methodologies, organisations gain enhanced flexibility, responsiveness and adaptability, which are essential in the ever-evolving business environment. Agile GRC has become an indispensable tool in modern risk management and strategic decision-making. This article outlines four key steps for successfully integrating agility into your company’s GRC strategy, ensuring a smooth transition from traditional processes to a more dynamic approach.

1. A holistic approach to GRC

In today’s complex risk environment, businesses must embrace a holistic governance, risk management and compliance (GRC) approach. Central to this is crafting a ‘big-picture plan’ for an Agile GRC strategy. This plan begins with a deep understanding of the company’s current state, including operations and GRC frameworks. This understanding, gleaned from internal audits, team discussions and stakeholder surveys, illuminates the efficacy and limitations of existing GRC measures, guiding informed decisions.

Recognising the current situation is crucial for defining an ideal future state. As Michael Rasmussen suggests, transitioning to this desired state demands clear change definitions and a detailed roadmap, usually spanning two to three years, with specific steps and milestones. Reassessing and setting new GRC goals is vital in this journey. These goals, aligned with the company’s wider aims, should be flexible to adapt to changes. Strategic questions play a key role in forging a comprehensive roadmap. Ultimately, creating a big-picture plan involves strategically moving from the present to a desired state, maintaining agility in a constantly evolving risk scenario.

Reflecting on the objectives of a GRC strategy, the following questions can be considered:

  • In what ways could our organisation enhance the sharing of information among departments to align our GRC endeavours more effectively?
  • Do we have a cohesive and accurate perspective of risk throughout our organisation? If not, what steps can we take to develop such a unified view?
  • Are there any deficient functions, processes or systems that may be hindering our transition to agile GRC?

2. Effective and active leadership

In the realm of Agile GRC, the efficacy of leadership is pivotal. The contemporary landscape of risk and compliance has increasingly placed accountability on leaders, often those not directly involved in the incidents. Notably, high-profile cases like Mark Zuckerberg’s involvement with Facebook exemplify this trend. For Agile GRC to be successfully implemented and its benefits fully realised, it is imperative that company leaders are not only advocates but also actively engaged in the process.

The transition to Agile GRC requires substantial time and effort. The significance of this shift is magnified in the absence of influential leaders such as the Chief Ethics or Compliance Officer (CCO), the Board of Trustees, and the Enterprise Risk Management team. These roles are instrumental in championing Agile GRC and fostering an environment conducive to its integration. The CCO plays a crucial role in navigating regulatory changes and strategising GRC improvements. The Board’s leadership and support are essential for sustaining GRC advancements. Finally, the Risk Management team ensures that Agile GRC and risk management objectives, primarily risk minimisation and mitigation, are aligned and achieved collaboratively.

In evaluating the suitability of individuals and roles for an agile GRC process, the following pertinent questions might be considered:

  • What sort of additional training or practical steps are necessary to effectively implement agile GRC?
  • Are these departments prepared and properly equipped to collaboratively work towards agility in GRC?
  • Has your organisation established adequate roles and departments, akin to the ones previously mentioned, to facilitate agile GRC?

3. The integration of technology is everything

In the context of Agile GRC, building an integrated technology architecture is crucial. This approach connects various software applications and platforms, enabling businesses to effectively map both internal and external data. Such an integrated system provides a comprehensive and realistic view of risks, facilitating a unified response to challenges and reducing errors common in siloed systems.

Additionally, an integrated architecture aligns different technologies and applications, leading to more efficient technical workflows and supporting the company’s overall GRC strategy. This is essential for organisations to respond swiftly to risks and adapt to new compliance requirements, enhancing their resilience and performance in a complex risk environment.

If the IT function is not fully integrated into an Agile GRC process, there may be disjointed risk management, compromised data accuracy and hindered response to compliance issues, affecting overall GRC effectiveness.

Three questions should be at the heart of a review of IT in an organisation

  • Is there seamless synchronisation of data between our IT systems and GRC processes?
  • Does our IT function effectively coordinate with GRC to promptly respond to identified risks and compliance issues?
  • Are there efficient communication channels and collaborative mechanisms between IT and GRC teams for agile decision-making and risk management?

4. An effectively staged transition

A poorly staged transition to Agile GRC can lead to disrupted operations, increased compliance risks, loss of stakeholder trust, inefficiency, and a failure to identify and mitigate emerging risks effectively.

Transitioning to Agile GRC in a staged manner is essential for businesses. This process involves establishing practical, frontline benchmarks, which, once achieved, guide the organisation towards greater GRC agility. This gradual approach enables teams to be better prepared for unforeseen risk events, emphasising the importance of getting smaller aspects right over awaiting a comprehensive overhaul.

It is crucial to set benchmarks across all GRC phases: preparation, selection, implementation, and utilisation. This methodical progression allows for continual refinement, particularly in areas like audit performance and compliance, aligning with budgetary constraints and organisational needs. Implementing these benchmarks ensures the GRC program is effectively managing risks and maintaining compliance, thus upholding the integrity of GRC activities.

Three questions can be asked to ascertain if the process of transition to Agile GRC has been carefully and strategically designed:   

  • Have we clearly defined the specific objectives and outcomes expected at each stage of our transition to Agile GRC?
  • Do we have established metrics or benchmarks to measure progress and success at each stage of the Agile GRC implementation?
  • Are we equipped to adapt our strategy based on feedback and challenges encountered during each transition stage?

Transitioning towards an Agile GRC strategy necessitates a comprehensive approach, where effective leadership, technological integration, and a phased transition are key. Adopting a holistic perspective on GRC ensures a thorough understanding and management of risks. Active and informed leadership is critical in steering this change. Integrating technology effectively into GRC processes enhances agility and responsiveness. Finally, a staged approach to this transition allows for manageable, incremental progress, ensuring a seamless shift towards a more agile, resilient GRC framework.