Organizations can deliver quantifiable ROI with governance, risk and compliance investments by tying them to the business strategy.
Company leaders are demanding measurable ROI on significant company initiatives, and Governance, Risk and Compliance (GRC) is no exception. While risk and compliance professionals readily grasp the potential of GRC-enabling technologies, their executive leadership need to be able to carefully weigh the costs and benefits of a GRC implementation just as they do other top organizational initiatives.
To enable their leadership to make a useful analysis, GRC stakeholders need to create meaningful business cases supported by well-defined program and technology costs. A business case should also define both tangible benefits (increased transparency, ability to proactively manage risks, integrated processes and platform and enhance decision making) and intangible benefits (efficient risk and control assessment activities, enhanced traceability of transactions, greater reporting and data integrity, and minimized legacy technology expenses).
Ultimately, the business case should answer the question, “Will our GRC investment enhance functionality and deliver business value?” The answer will depend on factors including whether the GRC program vision aligns with that of the organization, its desired future state helps the organization deliver value to its customers and stakeholders, and its implementation furthers the organization’s strategic business objectives.
A successful GRC implementation can result in savings through operational efficiencies, labor cost savings, and long-term IT cost reductions. Determining ROI on GRC transformation is a challenging but achievable proposition. By establishing clear financial and operational metrics for today and the future, capturing the value of intangible benefits and focusing on the entire GRC lifecycle, organizations can project measurable and tangible benefits, including a quantifiable ROI.
Learn more about how to estimate current costs and future state benefits, define meaningful GRC business cases and ensure ROI is measured throughout the GRC lifecycle by reading “Enhancing the return on investment for GRC implementation" here.