The Art and Science of Streamlining Vendor Reviews
Whether you’re looking to win new business as a vendor or mitigate risks as a customer, vendor security…
We continue to see a remarkable contradiction within the functions of Governance, Risk, and Compliance (GRC) in many organizations. In spite of companies disrupting industries with product and service innovations, they continue to operate through archaic, outdated methods when managing crucial GRC processes and functions. On one hand they’re pioneering new technology, and on the other hand they’re relying on general-purpose office suites, such as Google or Microsoft for operational needs. Why? Most likely because those offerings are low in cost and many times leaders struggle with justifying the investment in proper tools because they don’t know how to quantify the value and report to the C-Suite. Plus, humans are creatures of habits - we use the technologies and tools that are familiar to us. While I’m empathetic to those arguments, it’s not sustainable. For GRC teams to be successful and grow the maturity of their programs, they must invest in customized, comprehensive technology solutions that provide flexibility, shareability, efficiencies, and a holistic view of risk throughout the entirety of an organization.
Replace Limitations with Opportunities
The limitations of manual processes are stark and thwart productivity. Michael Rasmussen, a globally recognized expert on GRC, has previously highlighted the inefficiencies of manual GRC management. One mid-sized, midwestern bank found that 80% of their GRC staff's time was consumed by document management and reconciliation. Another firm reported spending 200 employee hours compiling a single board report due to the volume of documents involved. These examples underscore the critical need for more efficient, automated solutions in GRC management.
The benefits of automating operations - with the oversight of human intelligence - is undeniable. But before I share how transformative technology can be, let me list some disadvantages associated with manual processes and general-use office tools. Don’t feel bad if these reflect your reality - you’re not alone - a striking 60% of GRC professionals still manage risk and compliance with manual processes, according to a recent Coalfire Report.
- Time Inefficiency: Organizations report spending days or even months on tasks that could be accomplished in hours with automation.
- Error Proneness: Manual data entry and manipulation increase the risk of mistakes that could have serious implications and encourages silos instead of breaking down walls for holistic visibility.
- Lack of Real-Time Visibility: Spreadsheets and email chains don't reflect operational realities. While you’re inputting the data it’s not proactively creating a story that will help drive real-time data-driven decision making.
- Difficulty in Scaling: As organizations enter new markets and expand opportunities, they must consider the complexities of regulations. Manual processes prove to be inadequate and stifling when proving and securing compliance, versus providing speed to value and increasing the amount of time a business can secure new revenue.
- No Audit Trail: Without a complimentary technology architecture, you do not have audit trails. There is no certain way of knowing about the actual level of accuracy in any audit, assessment, survey etc.
Luckily, modern GRC platforms such as Risk Cloud replace antiquated manual methods with predictive and automated technologies that will replace your headaches with peace of mind. Some of those advantages include:
- Centralized Data Management: Risk Cloud provides a single source of truth for all GRC-related information, eliminating the need to reconcile data from multiple sources.
- Automated Workflows: Routine tasks such as data collection, risk assessments, and report generation can be automated with LogicGate’s enterprise risk management (ERM) tool, freeing up valuable time for analysis and strategic planning.
- Real-Time Monitoring and Reporting: Automated systems can provide up-to-date insights into an organization's risk and compliance status, enabling faster response to potential threats.
- Scalability: Unlike manual processes, Risk Cloud meets you where you are on the maturity scale and grows as your business grows. We offer out-of-the-box applications for quick deployment or enterprise-grade advanced options for large-scale custom-built workflows.
- Enhanced Collaboration: Since Risk Cloud is compatible with numerous external applications and solutions, users facilitate better communication and collaboration across the entirety of their organizations creating a more holistic approach to mitigating risk.
At LogicGate, we know the importance of ease-of-use and understand the value of time, which is why we continue investing in Risk Cloud to make the platform more agile and robust with numerous features that simplify the complex. For example, we recently launched our AI Governance Solution to enable fast and standardized AI-powered innovation and manage the implementation and usage throughout the entirety of their organizations. The solution seamlessly integrates with Cyber Risk Management, Controls Compliance, Third-Party Risk Management, and Policy & Procedure Management applications streamlining the process and creating a holistic view of AI usage across the organization. We also expanded the compatibility of our Automated Evidence Collection feature so users can further benefit from automating the aggregation of data to better inform risk-based decisions.
The Evolving Landscape
A recent 2023 Thomson Reuters Risk & Compliance Survey Report revealed that almost two-thirds (65%) of respondents believe that leveraging technology to automate manual processes would aid in reducing the complexity and cost of risk and compliance.
Consider this:
- Streamlining Diverse Spend Collection: The Federal Home Loan Bank of San Francisco experienced a significant transformation in their tier 2 diverse spend collection process. What was once a labor-intensive task requiring days of manual effort has been reduced to a matter of hours through automation with the Risk Cloud. This not only improved efficiency but also enhanced their ability to champion diversity and inclusion in subcontractor relationships.
- Accelerating Property Assessments: A global hospitality company with over a thousand properties worldwide saw a dramatic reduction in the time required for property assessments and reporting. Prior to automation with LogicGate’s Risk Cloud, these tasks took months due to manual data implementation. With automated features, the process now takes only hours, creating substantial efficiency gains across the organization.
- Enhancing Risk Reporting Efficiency: A large organization involved in mergers and acquisitions reported a remarkable improvement in their risk reporting process. Before implementing Risk Cloud, collating and standardizing risk register data across more than 30 entities and preparing risk reports took five days. With automation, this process has been reduced to just six hours, allowing for live subsidiary risk data to be a key part of performance management meetings.
However, it is worth noting that automation is not a silver bullet solution. The keys to a successful GRC program include operating from a holistic approach to understand the risk landscape within an entire organization, translating GRC metrics into bottom-line business impact when reporting to leadership and having a flexible platform that can scale as your company’s needs evolve and grow. And most critically, in addition to the power of technology and the uptick of AI, the human element in interpreting data, making judgments, and setting strategic direction is essential.
While the transition to automated GRC processes is a formidable challenge for most organizations, it has become increasingly important considering the efficiency, accuracy, and strategic insights gained by it. Leveraging automation in GRC effectively will continue to emerge as a vital characteristic that defines resilience and success within organizations in the future.