It can be difficult to assess how mature your organization is when it comes to your work with governance, risk, and compliance (GRC). Nevertheless, understanding your level of GRC maturity is important, as it influences how this critical work is approached internally, as well as the risks and opportunities your organization faces.
A high level of maturity often means that your organization works efficiently with GRC by investing resources, adopting a unified approach, and being supported by systems. In contrast, a low level of maturity is often characterized by a more siloed effort that is not a priority for management.
The right mindset strengthens the GRC effort
Having a high level of maturity allows your organization to integrate the GRC efforts across the organization, which provides a variety of benefits.
By clarifying where your organization stands on the essential dimensions of governance, risk and compliance, it becomes possible to focus the efforts and raise the level of maturity. And with higher maturity follows greater efficiency and better synergy between the different GRC areas - all factors that help the organization prioritize and strategize its efforts.
A low level of maturity results in a lack of oversight
The maturity level is what drives the organization's approach to GRC. No one actively chooses to work in fragmented and siloed ways, but this is often the result of low maturity. The disadvantage is that employees are working in silos without focusing on best practices, which typically leads to inefficient workflows. This leads to a waste of resources, duplication of effort, and human error.
Additionally, the limited standardization and ad hoc approach to GRC makes it difficult for management to get an overview of the organization's performance at an enterprise level. This results in a greater focus on the necessary documentation rather than on creating momentum and synergy - not to mention growth.
An high level of maturity ensures efficiency and synergy
Understanding the level of GRC maturity of the organization makes it easier to target processes and streamline actions across departments. Common processes and information ensure greater efficiency and synergy between the various GRC areas and enable management to prioritize and strategize their initiatives.
Overall, a unified approach to GRC ensures that all three areas – governance, risk, and compliance – operate with a cohesive strategy and technology, providing a solid foundation for a strong compliance culture.
GRC can be improved at all levels
Regardless of whether your organization has a low or high level of GRC maturity, you should not sit back and accept stagnation if the many benefits can be fully leveraged.
GRC is very dynamic, and there is always room for improvement. Obviously, the lower the maturity level of the organization, the more disruption and noticeable benefits you will experience in a short period of time. However, even an integrated approach to GRC needs to be managed to maintain the maturity level and fully utilize its many benefits.
And the benefits are significant - including:
- Better overview of the overall approach
- More efficient work processes
- Minimization of human error
- A strong culture of compliance
- Improved mitigation of risks
Over time, an integrated GRC approach will result in initiatives that support business objectives and strategies. Furthermore, the organization will gain a holistic insight into risks and performance across multiple business units.
