Learn about the GRC trends that are making an impact this year and prepare for the key risks and challenges facing organizations of all sizes. Learn the importance of GRC in risk mitigation and regulatory compliance, helping organizations to avoid incidents, sanctions and legal penalties.
Introduction
Welcome to our guide to the year’s top GRC trends! We are excited to dive into the latest industry information and provide an in-depth analysis of the current state of GRC (Governance, Risk and Compliance) practices. In this guide, we examine the key GRC trends that organizations need to be aware of to mitigate risk in 2023.
In this article, in addition to presenting the main GRC trends that are here to stay, consolidating a change in posture towards higher levels of maturity, we will explore the importance of GRC, its role in mitigating risks and how it can help organizations of sizes to achieve regulatory compliance, avoiding incidents and sanctions. Enjoy reading!
Definition
The acronym “GRC” stands for “Governance, Risk and Compliance”. It refers to the processes, policies and technologies that organizations use to manage their obligations in these three areas. GRC is a critical business function that ensures organizations comply with industry regulations, manage risk effectively and maintain ethical standards.
In summary, GRC is an overarching framework, a set of processes that help organizations operate within certain standards to meet regulatory requirements, manage and reduce risk. As the business landscape evolves and regulatory requirements become more complex, it is essential to update processes to the latest GRC trends.
Scenario
In recent years, the massive virtualization of work environments, greatly accelerated by the COVID19 pandemic, has brought numerous challenges to management, governance, compliance, IT and IS teams. The abnormal amount of risks posed by the scenario, as a result of the exponential increase in the attack surface, put these teams in a state of alert and in a situation where they are charged more than ever.
In this dynamic and interconnected business environment, the risks associated with non-compliance and regulatory violations are evident and greater than ever. From this point on, they need to adopt a proactive stance in identifying and mitigating risks to ensure business continuity and avoid legal penalties. This is exactly where the set of practices known as GRC (Governance, Risk and Compliance) comes in.
The year 2023 is proving to be very exciting for the GRC area. With new technologies and evolving regulatory requirements, organizations need to be prepared to adapt to new standards and tools, always ready to face challenges, present and future, faster than ever. But how to choose among so many paths or know in which direction to prioritize the paths of innovation?
Challenges in GRC
Now that we’ve left New Year’s Eve, vacations, Carnival and hangovers behind, the difficult task of looking back calmly and reviewing some forecasts based on last year’s trends, to analyze those that really lasted until now and that will be maintained, as they improve the maturity level of the market.
At the same time, in the GRC landscape, challenges have increased with new technologies and evolving regulatory requirements, making organizations need to be alert to stay current if they are to remain secure and compliant. With an ever-increasing focus on cybersecurity, regulation, technology and ethics, it’s essential that companies take a proactive and effective approach to risk management and compliance.
With so many challenges, the key to success, in addition to investing in the right technologies and integrating GRC into your business strategy, is undoubtedly proactivity. By staying ahead of this and other GRC trends, organizations can achieve better results, protect their reputation and build trust with stakeholders.
10 GRC trends for 2023
Compliance Automation
Compliance is no longer a manual process. Expect to see more organizations adopting compliance automation solutions to reduce the burden of compliance management. These solutions can help automate tasks such as policy management, risk assessments and regulatory reporting. Some GRC solutions like GAT Core deliver technology for the efficient management of these processes with a high level of automation and machine learning, cross-platform integration, cybersecurity risk management and much more.
Integration of GRC with Business Strategy
GRC is not just a compliance function and has become an integral part of business strategy. In 2023, we will see more organizations integrating GRC into their overall business strategy for better results. This involves aligning GRC objectives with business objectives, integrating GRC processes with business processes, and leveraging GRC data to inform business decisions.
Third Party Risk Management
Third-party risk management has always been a challenge for organizations and will continue to be in 2023. Expect to see more regulatory scrutiny on how organizations manage their third-party risk, especially in areas such as supply chain management and supplier relationships. Organizations will need to implement robust third-party risk management programs that include due diligence, contract management and ongoing monitoring.
Cyber Security Risk Management
Cybersecurity risks are increasing and organizations need to be prepared to deal with them. In 2023, we will see more organizations adopt a risk-based approach to cybersecurity. This involves identifying and prioritizing risks, implementing appropriate controls, and monitoring potential threats. Expect to see more investment in cybersecurity risk management technologies such as security information and event management (SIEM) and threat intelligence platforms.
ESG (environmental, social and corporate governance)
Like the level of cybersecurity, ESG is becoming a key factor in investment decisions and will continue to gain importance in 2023. Organizations will have to pay attention to their performance and disclose their efforts to address environmental, social and governance issues. Expect to see more regulations and investor pressure on organizations to disclose their ESG performance and demonstrate their commitment to sustainability.
Privacy and Data Protection
Privacy and data protection have been hot topics for the last few years and they aren’t going away anytime soon. With cyber attacks and data breaches on the rise, organizations will have to step up their game to protect their customers’ data. The regulatory landscape is also changing, with new laws like the GDPR and CCPA setting high standards for data protection. Expect to see more organizations investing in technologies like encryption, multi-factor authentication and data loss prevention in 2023.
Ethical and Responsible Business Practices
Ethical and responsible business practices have become a top priority for consumers, investors and regulators. In 2023, we will see more organizations adopting ethical and responsible business practices to build trust and reputation. This involves implementing robust ethics and compliance programs, promoting a culture of integrity, and publicizing efforts to address social and environmental issues.
Agile GRC
Agile methodologies are not just for software development anymore. In 2023, we will see more organizations adopt agile GRC practices to improve their compliance and risk management capabilities. Agile GRC involves an ongoing feedback loop, regular assessments, and an iterative approach to managing GRC. Expect to see more investment in agile GRC technologies like DevOps and continuous compliance monitoring.
Cyber Insurance
With the rise of cyber attacks, cyber insurance is becoming more and more popular. In 2023, we will see more organizations investing in cyber insurance to protect themselves from the financial impact of cyber incidents. Expect to see more insurers offering cyber insurance policies that cover a wider range of cyber risks.
Rise of Artificial Intelligence and Machine Learning
Artificial intelligence (AI) and machine learning (ML) are no longer buzzwords; they are becoming a reality in the GRC scene. These technologies can help organizations automate repetitive tasks, detect anomalies, and improve decision-making processes. Expect to see more organizations adopting AI and ML solutions in 2023 to enhance their GRC capabilities.
