Redefining GRC through Digital Technologies
Digital transformation of GRC – a key imperative for financial firms today
The macro-economic events of the past decade have brought governance, risk, and compliance (GRC) into regulatory focus. Emerging technologies, disruptive business models, and analytics-driven decision-making have exposed the inadequacies of existing GRC frameworks. These frameworks have failed to manage risk effectively as evidenced by rising high-ticket losses and frauds. It has thus become imperative for banks to transform their GRC function and shore up their risk management capabilities to deal with emerging trends.
In our view, banks must transform their GRC frameworks to align with the emerging business and operating environments and adapt to future risk scenarios. To ensure this, banks must adopt a GRC framework founded on logical integration rather than need-based integration. This will help:
- Eliminate inefficiencies and prevent overlaps across risk management activities
- Leverage existing IT infrastructure for analytics, reporting, BPM, document and data management
- Detect potential systemic risk events, patterns, and trends that could cause financial loss