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What is Governance, Risk, and Compliance (GRC) software?

Anthony Stevens |

May 16, 2023

What is Governance, Risk, and Compliance (GRC) software?

Contents

What is Governance, Risk, and Compliance (GRC) software?

Governance, Risk, and Compliance (GRC) software refers to a comprehensive solution that helps organizations manage the complex landscape of regulations, risks, and internal controls. GRC software enables businesses to streamline their governance processes, identify and mitigate potential risks, and ensure compliance with regulatory requirements.

This software is designed to centralize and automate various tasks, including internal audits, risk assessments, regulatory compliance, and enterprise risk management. By providing real-time insights and a structured approach, GRC software empowers organizations to make informed decisions, improve operational efficiency, and maintain a culture of compliance across the entire organization. With its ability to leverage digital transformation, artificial intelligence, and predictive analytics, GRC software is widely recognized as an essential tool for businesses in managing risks, ensuring regulatory compliance, and enhancing governance practices.

The benefits of GRC software

GRC software offers numerous benefits to organizations in effectively managing governance, risk, and compliance. By leveraging the power of technology, this software enables businesses to identify and manage risks, meet regulatory compliance requirements, streamline processes, and provide real-time alerts.

One significant advantage of GRC software is its ability to streamline various compliance activities, such as internal audits and risk assessments. With a structured approach and automated workflows, organizations can efficiently navigate complex regulatory frameworks and ensure adherence to necessary standards. This not only reduces the time and effort involved in manual processes but also minimizes the potential for compliance breaches.

Moreover, GRC tools enhance the value provided by these software solutions by generating fast and accurate reporting. This enables business executives, finance managers, legal counsel, and IT directors to make informed decisions based on real-time insights and data. With the ability to automate controls, GRC software significantly reduces compliance costs and increases overall operational efficiency.

Additionally, GRC software plays a crucial role in ensuring business continuity by enabling organizations to identify potential risks and take proactive actions to mitigate their impact. Real-time alerts and monitoring capabilities provide timely information about changes in regulatory requirements or emerging risks, allowing businesses to respond swiftly and effectively.

Types of solutions

When it comes to governance risk and compliance (GRC) software solutions, there are several options available in the market. These solutions are designed to help organizations effectively manage their compliance activities, navigate complex regulatory frameworks, and mitigate potential risks. One common type of GRC software is focused on automating internal audits and risk assessments, streamlining the process and ensuring accuracy. Another type of solution focuses on compliance management, helping organizations stay in line with regulatory requirements and maintain a culture of compliance. Additionally, there are GRC software solutions that enable businesses to manage operational risks, identify potential threats, and develop strategies to mitigate their impact. These solutions provide real-time alerts, monitoring capabilities, and predictive analytics to support informed decision-making. Overall, the range of GRC software options allows organizations to choose the solution that best fits their specific needs and industry requirements.

If you want to jump ahead, review what you should expect modern and integrated, 'next generation' GRC software to do. 

Check out this video below as well.

Enterprise risk management software

Enterprise risk management (ERM) software is a powerful tool that enables businesses to effectively identify, assess, and mitigate risks across all departments and third-party vendors. In today's rapidly changing business landscape, organizations face numerous risks that can significantly impact their success. ERM software provides a structured approach to risk management, allowing businesses to stay ahead of potential risks and make informed decisions.

One key benefit of ERM software is its ability to centralize risk data and provide real-time insights. By bringing together data from various sources, including internal audits, risk assessments, and regulatory requirements, the software ensures a holistic view of risks across the entire organization. This enables businesses to gain a comprehensive understanding of potential risks and take proactive measures to mitigate them.

ERM software also streamlines workflows and automates manual processes, improving efficiency and reducing human error. Through features such as access control and workflow management, businesses can enforce compliance with corporate policies and government regulations. They can also monitor critical workflows in real-time, receive automated alerts, and track the progress of risk mitigation efforts. This not only enhances compliance but also fosters a culture of risk management within the organization.

Furthermore, ERM software harnesses the power of predictive analytics and risk assessment. By analyzing historical data and identifying patterns, the software can predict potential problems and their potential impact. This enables businesses to take preventive measures and minimize losses, ultimately improving business outcomes.

You can check out the 6clicks ERM solution here

Operational risk management software

Operational Risk Management Software plays a crucial role in helping businesses identify, assess, and mitigate operational risks as part of their broader risk management program. This software enables organizations to monitor and manage vulnerabilities not only within their departments, such as IT, finance, and HR but also risks associated with third-party vendors.

By utilizing operational risk management software, businesses can conduct comprehensive risk assessments to identify potential risks and evaluate their potential impact on the organization. This allows them to prioritize risks based on their severity and likelihood, enabling effective risk mitigation strategies to be developed and implemented.

One of the key features of this software is its ability to track risk mitigation efforts in real-time. By providing visibility into the progress of risk mitigation actions, organizations can ensure that risks are being effectively addressed and monitored on an ongoing basis. This enables proactive risk management and the ability to make informed decisions to prevent potential issues.

Another significant benefit of operational risk management software is the ability to manage risks associated with third-party vendors. This includes conducting due diligence on vendors, monitoring their compliance with established risk management policies, and establishing controls to mitigate any potential risks introduced by these vendors.

Regulatory compliance software

Regulatory compliance software plays a crucial role in helping organizations meet legal and regulatory requirements. It provides a systematic and structured approach to ensure adherence to various laws, regulations, and industry standards that govern how businesses operate.

One of the main advantages of regulatory compliance software is its ability to streamline compliance processes. It centralizes all compliance-related tasks and activities, making it easier for organizations to manage and track their compliance efforts. This includes maintaining and updating policies and procedures, conducting risk assessments, and monitoring compliance initiatives.

Compliance tracking is another essential feature of regulatory compliance software. It allows organizations to monitor their compliance status in real-time, ensuring that all requirements are met and any potential compliance gaps are identified and addressed promptly. This helps organizations stay on top of their regulatory obligations and minimize the risk of non-compliance.

Additionally, regulatory compliance software facilitates efficient audit management. It provides a platform for scheduling and conducting audits, documenting findings, and tracking remediation actions. This helps organizations prepare for external audits and ensures that internal controls and processes are robust and effective.

Finally, regulatory compliance software enables the generation of comprehensive reports. These reports provide visibility into compliance activities, highlight areas of non-compliance, and track progress in meeting regulatory requirements. They also serve as documentation for regulatory authorities and demonstrate an organization's commitment to compliance.

Overall, regulatory compliance software is essential for organizations to effectively manage their compliance obligations, streamline processes, and stay on top of regulatory requirements. It ensures that legal and regulatory standards are met, mitigating compliance risks and contributing to a culture of compliance.

Explore the features and capabilities to support your regulatory compliance obligations

Third-party risk management software

Third-Party Risk Management Software plays a crucial role in today's business landscape by automating processes, enhancing security and privacy, and facilitating faster vendor onboarding. With the increasing reliance on third-party vendors, organizations need effective tools to identify, assess, and mitigate risks associated with these external partnerships.

By automating various risk management tasks, this software streamlines the entire process, saving time and resources. It enables organizations to efficiently evaluate vendors, conduct due diligence, and establish risk profiles. With built-in workflows and templates, the software ensures consistent risk assessment methodologies and documentation.

Security and privacy are paramount when dealing with third-party vendors. Third-Party Risk Management Software helps organizations maintain a high level of data security by enforcing standardized security protocols, monitoring vendor compliance, and identifying potential vulnerabilities. It also enables organizations to track and verify compliance with privacy regulations, protecting sensitive data.

Furthermore, this software expedites the vendor onboarding process by streamlining documentation requirements and automating approval workflows. It facilitates efficient communication between multiple departments involved in the onboarding process, ensuring smooth collaboration and quick turnaround times.

Discover the power of the 6clicks solution for vendor risk management.

Business continuity management software

Business Continuity Management Software plays a crucial role in effectively planning, exercising, and recovering from disasters. This software helps organizations create comprehensive business continuity plans, ensuring that they are well-prepared to handle unexpected events and minimize potential disruptions.

One of the key benefits of this software is its ability to safeguard operational technology systems. By implementing digital workflows, organizations can improve resilience and uptime of their critical systems. Digital workflows automate and streamline processes, reducing the reliance on manual intervention and minimizing the risk of errors or delays. This ensures that operational technology systems can quickly recover and resume normal operations after a disaster.

The features of Business Continuity Management Software are designed to streamline the response to threats. It provides a centralized platform to assess risks, create and update response plans, and assign tasks to relevant stakeholders. This ensures that everyone is aligned and working towards the same goal during a crisis.

Furthermore, this software provides a single system of action, allowing organizations to easily manage and track their business continuity efforts. It offers real-time insights into the status of recovery efforts, enabling organizations to make informed decisions and allocate resources effectively.

In summary, Business Continuity Management Software plays a vital role in safeguarding organizations against disasters. It enables effective planning, streamlined response, and quick recovery, ensuring the continuity of business operations.

The characteristics of modern, next-generation GRC software

Indeed, the software landscape has undergone significant transformation in recent years due to various factors, including advancements in technology, market demands, and the evolution of computer science.

 

6clicks GRC platform

 

Modern, next-generation software, such as 6clicks, exhibits several core characteristics that set it apart from its predecessors:

1. Integrated Content - Standards, Frameworks, Laws, and Regulations

Modern, next-generation software like 6clicks integrates relevant and up-to-date content, including industry standards, laws, and regulations. This integration ensures that the software stays current with the latest requirements and best practices, allowing businesses to remain compliant and secure. Having access to this integrated content streamlines the compliance process and reduces the manual effort required to keep up with changing regulatory landscapes.

Check out the 6clicks content library here - all included in our licensing model

2. Powered by artificial intelligence (AI)

AI plays a crucial role in next-generation software solutions like 6clicks. AI technologies enable advanced analytics, predictive modelling, and automation capabilities that enhance the software's functionality and performance. Within 6clicks, AI is used to automate compliance mapping, policy gap analysis and risk and control definition.  

3. Fully integrated modules and capabilities

Unlike older software systems with disjointed features, modern software is built with a focus on seamless integration across various modules and capabilities. This integration allows data to flow smoothly between different parts of the software, enabling comprehensive reporting, real-time updates, and a more holistic view of the organization's risk and compliance posture.

Get an overview of the 6clicks platform here

4. Hosted and secured on modern cloud infrastructure like Microsoft Azure

Next-generation software solutions leverage the power of modern cloud infrastructure for hosting and data storage. Cloud-based platforms like Microsoft Azure offer scalability, flexibility, and high-level security measures. Hosting the software in the cloud enables users to access it from anywhere with an internet connection, promoting collaboration and remote work. Moreover, cloud providers implement robust security protocols, ensuring data confidentiality, integrity, and availability.

5. Unique multi-tenanted design and approach

The multi-tenanted design of modern software allows multiple organizations (tenants) to share the same software instance securely while keeping their data isolated from others. This approach is highly cost-effective as it reduces the need for individual software installations for each organization. Additionally, multi-tenancy aligns easily with various business models, making it attractive for businesses of different sizes and industries.

6clicks was the pioneer of this approach globally.  You can learn more about 6clicks Hub & Spoke here

6. User-friendly interface and experience

Next-generation software prioritizes user experience, featuring intuitive interfaces and streamlined workflows. The goal is to minimize the learning curve for users and increase overall productivity. User-friendly software encourages higher adoption rates, ensuring that the full potential of the solution is realized throughout the organization.

7. Continuous updates and enhancements

Modern software is built with the understanding that the technology landscape is constantly evolving. As such, next-generation software providers regularly release updates and enhancements to address new challenges, incorporate user feedback, and integrate the latest advancements in technology. These updates ensure that the software remains relevant, efficient, and aligned with changing industry needs.

In summary, modern, next-generation software like 6clicks embraces integrated content, AI capabilities, seamless module integration, secure cloud hosting, multi-tenancy, user-friendly interfaces, and continuous updates. These characteristics collectively empower businesses to efficiently manage risk, compliance, and governance processes in an ever-changing digital landscape.

Core features and capabilities of GRC solutions

Governance, risk, and compliance (GRC) solutions are essential tools for organizations to manage and mitigate various risks, ensure regulatory compliance, and establish effective governance structures. These software platforms offer a range of features that help organizations streamline their governance, risk management, and compliance processes. From risk assessments and internal audits to regulatory requirements and operational controls, GRC solutions provide organizations with a structured approach to managing their compliance obligations and mitigating risks. With features such as workflow management, real-time monitoring, and predictive analytics, GRC solutions enable organizations to gain real-time insights into their risk landscape, make informed decisions, and automate critical workflows. By centralizing and automating these processes, GRC solutions help organizations improve efficiency, reduce manual errors, and enhance their culture of compliance. As a result, organizations can effectively address regulatory challenges, protect against security threats, and achieve their business goals.

Automation of manual processes

In today's dynamic business landscape, organizations face an increasing number of compliance obligations and risks. To mitigate these challenges, governance risk and compliance (GRC) software has emerged as a powerful tool to automate manual processes, significantly improving efficiency and accuracy.

Traditional manual processes are time-consuming and prone to human error. However, with automation capabilities offered by GRC software, businesses can streamline various tasks such as internal audits, risk assessments, and compliance management. By replacing manual efforts with automated workflows, teams can save valuable time and allocate resources to more strategic activities.

The benefits of automation in GRC software are evident. It not only reduces the risk of human error but also enables organizations to maintain compliance with regulatory requirements and internal controls more effectively. By eliminating manual entry and repetitive tasks, the software ensures data accuracy and consistency, providing a solid foundation for better decision-making.

Moreover, automation in GRC software fosters real-time insights, enabling businesses to identify and mitigate risks promptly. With the ability to monitor critical workflows and receive real-time alerts, organizations can proactively address potential compliance issues before they escalate.

Access control & identity verification

Access Control & Identity Verification play a vital role in governance risk and compliance (GRC) software, ensuring the security and integrity of organizational data. These features are essential for managing privacy risk and compliance in real-time, detecting cybersecurity threats, and expediting the process of system onboarding and continuous monitoring.

By implementing robust access control mechanisms, GRC software enforces strict authentication and authorization protocols, safeguarding sensitive information from unauthorized access. The software verifies the identity of users and grants access rights based on predefined rules, mitigating the risk of data breaches and ensuring compliance with privacy regulations.

GRC software with access control capabilities provides real-time monitoring of user activities, allowing organizations to identify potential compliance violations promptly. It enables organizations to track user behavior, audit access logs, and generate compliance reports in real-time, ensuring adherence to internal and external policies.

Additionally, access control in GRC software integrates with Security Information and Event Management (SIEM) systems, enabling organizations to detect and respond to cybersecurity threats effectively. It helps in monitoring and analyzing security events continuously, facilitating early threat detection and response.

Moreover, access control and identity verification accelerate the onboarding process for IT systems. By automating user provisioning and access requests, the software streamlines the provisioning process, reducing manual efforts and decreasing time-to-market. It enables organizations to bring their IT systems online rapidly while maintaining compliance with regulatory requirements.

Real-time insights & reporting capabilities

GRC software offers powerful real-time insights and reporting capabilities that enable organizations to effectively manage and mitigate risks. With continuous monitoring and dynamic dashboards, users gain real-time visibility into compliance across the entire organization.

These capabilities allow organizations to constantly monitor their compliance status, identify potential issues, and take proactive measures to address any noncompliance. Real-time visibility provides a comprehensive and up-to-date view of compliance activities, allowing users to track progress and identify high-risk areas that require immediate attention.

Dynamic dashboards present key compliance metrics and performance indicators in a visually appealing and easy-to-understand format. Users can access real-time reports and analytics, allowing them to make data-driven decisions and take prompt action when necessary. These reports provide valuable insights into compliance trends, potential risks, and overall compliance posture.

Furthermore, GRC software facilitates automated workflows and notifications, alerting users to changes in vendor status or regulatory requirements. This ensures that organizations stay informed about any changes that may impact compliance. Users can then drive action to address these changes, ensuring that the organization remains compliant and aligned with regulations.

Workflow optimization & automation tools

Workflow automation and optimization tools play a crucial role in governance risk and compliance (GRC) software, providing numerous benefits to organizations. These tools are designed to enhance productivity, streamline processes, and reduce manual efforts.

By automating repetitive and time-consuming tasks, workflow optimization tools allow employees to focus on more valuable activities, significantly improving efficiency. Manual efforts can be minimized, freeing up resources to allocate towards strategic initiatives rather than administrative tasks.

Automation tools in GRC software also help in streamlining processes. Workflows can be standardized and automated, eliminating the need for manual intervention at each step. This not only improves accuracy but also ensures consistency in compliance activities across the organization.

Moreover, automated workflows facilitate seamless collaboration among various departments and stakeholders. By connecting different teams involved in compliance processes, these tools enable real-time communication, task assignment, and progress tracking. This reduces delays, eliminates silos, and enhances overall coordination, leading to faster and more effective decision-making.

Compliance tools & solution support

Compliance tools and solution support services play a vital role in helping organizations achieve and maintain compliance with regulations and policies. These tools provide the necessary framework and automation capabilities to monitor and manage compliance processes effectively.

One of the key benefits of using compliance tools is the ability to streamline and automate various compliance activities. These tools enable organizations to standardize workflows, automate tasks, and eliminate manual intervention, ensuring consistency and accuracy in compliance efforts. By reducing the reliance on manual processes, compliance tools minimize the risk of human error and provide a more efficient and reliable approach to compliance management.

In addition, compliance tools offer real-time monitoring and reporting capabilities that allow organizations to proactively identify and address any compliance issues or violations. With the ever-changing regulatory landscape, it is crucial for organizations to stay up-to-date with the latest requirements and ensure adherence to them. Compliance tools provide comprehensive monitoring and reporting features that enable organizations to track compliance metrics, identify potential risks, and take prompt corrective actions.

Digital transformation for the entire organization

Digital transformation plays a crucial role in the context of governance, risk, and compliance (GRC) software for the entire organization. It involves the integration of digital technologies to revolutionize business processes, enhance productivity, and enable organizations to keep pace with evolving regulatory requirements. By embracing digital transformation, organizations can streamline their GRC efforts, improve decision-making processes, and drive overall efficiency.

In the public sector, digital transformation is particularly important as it enables government agencies to digitize and modernize government services. By leveraging GRC software, public sector organizations can automate compliance tasks, streamline workflow management, and ensure adherence to regulatory frameworks. This not only improves the delivery of government services but also enhances transparency and accountability.

Moreover, digital transformation enhances operational technology (OT) management in the public sector. By adopting advanced GRC software solutions, public sector agencies can effectively monitor and manage OT systems, ensuring their resilience and uptime. This allows the agencies to safeguard critical infrastructure, protect sensitive data, and mitigate risks more efficiently.

The benefits of digital transformation in accelerating the delivery of government services and safeguarding operational technology systems are numerous. It enables public sector organizations to optimize resource allocation, improve data management, and facilitate data-driven decision-making. Additionally, digital transformation enhances collaboration and communication among different government departments, leading to more cohesive and efficient operations.