The ‘GRC Maturity Model’ has become a vital concept in the digital era of cybersecurity. Organizations are keenly focused on improving their maturity levels to boost sales and enhance their reputations.

Governance, Risk Management, and Compliance (GRC) form the bedrock of modern business. From small, fast-growing companies to large enterprises, organizations are embracing the power of integrated GRC. This shift is driven by the recognition that fragmented spreadsheets, manual processes, and siloed departments lead to costly penalties and regulatory repercussions.

Integrated GRC solutions offer transformative potential. In this blog, we explore GRC maturity, how to overcome challenges, and how our integrated GRC software, ASSURTIV, helps you achieve a higher level of GRC proficiency.

What is GRC Maturity?

GRC Maturity refers to the level of sophistication and effectiveness with which an organization manages the interconnected domains of Governance, Risk Management, and Compliance (GRC). Didn’t understand? Let’s suppose your business has implemented a robust GRC structure. But how do you let other firms or clients know that you have a superior GRC structure? This is where Maturity levels come into play. It’s an assessment of how well-developed and embedded GRC processes are within the organization.

The higher level of GRC maturity signifies a more structured, integrated, and proactive approach, directly contributing to the achievement of positive business outcomes. This involves strategically aligning organizational objectives with risk appetite and compliance requirements, thereby fostering a culture of informed decision-making.

The Crucial Role of Integrated GRC in Advancing Organizational Maturity Level:

Integrated GRC is like a company’s safety guard. It makes sure the company follows laws, goals, and manages risk with people, processes, and tech.

Departments like IT, security, finance, and others start safety checks as they understand their role in managing risk. Even though they face unique challenges, they see the benefits of a unified approach.

A special team, known as the Second Line of Defense (2nd LOD), watches over these checks. The First Line of Defense (1st LOD), which includes employees and managers who are closest to the risks, often get confused due to tasks that overlap.

An Integrated GRC program helps everyone work together by using common processes, language, and tech for better risk management. This approach positively changes company culture, making risk management a success factor rather than a hurdle.

Putting integrated GRC into action boosts your business’s maturity level, encouraging ongoing growth, communication, exploration, and evolution.

The Maturity Model for Integrated GRC

The Integrated GRC Maturity Model focuses on evolving the five stages or levels of capability progressively. It implements a thorough strategy through a series of cleverly orchestrated tactical actions.

• Siloed

• Transition

• Managed

• Transform

• Advantaged

GRC Maturity Levels:

Level 1 – Siloed (Ad Hoc): GRC activities are largely ad hoc, reactive, and siloed within different departments.

• GRC tasks are spread out across departments, mostly reacting to issues as they come up.

• Each business unit handles its own risks, with little coordination or visibility across the organization.

• Training is divided up, mainly focusing on compliance within specific parts of the organization.

• Different tech tools are used, which can lead to inconsistencies and repeated efforts.

Level 2 – Transition (Fragmented): Efforts aimed at enhancing efficiency are in progress to solidify procedures and broaden the range of the program.

•  There’s a growing understanding of the need for a united GRC approach, sparking early teamwork across the main departments.

• Support from top management boosts GRC efforts across different functions.

• Communication gets better across business units, giving a wider view of the risk and compliance scene.

• Processes are starting to form, like standard reporting, policy making, and the beginnings of a strong system for tracking issues.

• Efforts to bring technology together and align it start with the goal of making operations more efficient.

Level 3 – Managed (Integrated): Business procedures have matured to a stable condition and are currently efficient, reproducible, and maintainable.

•  GRC processes show regularity and maturity, driven by clear goals and set best practices.

• Roles within the program are clear, encouraging responsibility and efficient work.

• Committees with members from different functions enable all-around decision-making, governing GRC tech, processes, and strategy.

• Vendor relationships move from random consulting to strategic partnerships supporting long-term GRC growth.

• Training goes beyond specialized areas, giving all employees a basic understanding of risk and compliance.

• A shared system breaks down communication walls and makes GRC activities smoother across departments.

• Project management is strictly used, showing clear progress towards GRC goals.

• Tech systems come together, encouraging information sharing and teamwork across functions.

Level 4 – Transform (Data Driven): Revolutionary measures are implemented to enhance the link between business operations and risk control.

•  Insights based on data change GRC, smoothly lining up processes with the organization’s wider operational strategies.

• Governance committees set up regular reporting methods to executive leadership.

• Awareness of risk and compliance goes deeper, strengthening the 1st Line of Defense through process testing and increased responsibility.

• Systems are fully put into operation across asset, control, and risk assessments, improving issue spotting and reporting.

• Program management focuses on strictness, oversight, and performance metrics, guiding improvement efforts.

• Tech infrastructure reaches operational stability, with regular system health checks and organized change management.

Level 5 – Advantaged (Value Focused): Processes are fine-tuned and harmonized considering the business environment and risk preferences.

•  GRC works well with the organization’s strategic goals, helping to understand risks and respond proactively and in a coordinated way.

• Governance structures are flexible and inclusive, supporting growth and quickness in the GRC area.

• Full training creates a risk-aware culture across all Lines of Defense, enabling informed decision-making.

• Clear and refined systems ensure clarity and alignment across functions.

• Risk prioritization is based on potential impacts on business goals, enabling strategic investment and reduction.

• A unified risk management method proactively spots and addresses high-impact risks.

• GRC spending is made efficient, with investments linked to broader strategic goals.

• Continuous improvement is sought through peer benchmarking, process improvements, and ongoing metrics analysis.

• Mature GRC technology is supported by a full change management process.

• A dedicated Center of Excellence drives collaborative program management and progress.

How Can ASSURTIV Help Your Business Achieve a High Maturity Level?

As we discussed earlier, the maturity level depends on how well the implementation of your GRC has been integrated into the business. By using ASSURTIV, you can enhance your GRC processes, achieve a higher level of maturity, and earn a solid reputation in your journey.

Let’s take a closer look at some challenges businesses face without using GRC software like ASSURTIV.

Challenges in Achieving a Higher Level of Maturity:

Achieving an integrated, high-functioning GRC program doesn’t happen overnight. Organizations often encounter these obstacles along the way:

1. Lack of Executive Support:

• Problem: If top management doesn’t see the value or urgency of integrated GRC, initiatives might lack sufficient funding, authority, and cross-functional cooperation.

• Overcome with ASSURTIV:

• Quantify the potential costs of not having a robust GRC program (e.g., fines, reputation damage, operational setbacks).

• Tie GRC goals to specific business objectives.

• Secure an executive-level champion for the GRC program.

1. Siloed Culture:

• Problem: Departments operating independently create blind spots, duplicated efforts, and inconsistent risk management approaches.

• Overcome with ASSURTIV:  

• Establish clear GRC roles and responsibilities across the organization.

• Form cross-functional governance committees.

• Celebrate team successes to foster collaboration.

1. Limited Resources:

• Problem: GRC programs need skilled people, adequate funding, and the right technology. These can be in short supply.

• Overcome with ASSURTIV:  

• Start small and focus on high-impact areas, demonstrating measurable ROI to justify further investment.

• Look for efficiency gains through automation and streamlining existing processes.

• Consider strategic partnerships with external service providers for specialist needs.

1. Data Fragmentation & Inconsistent Standards:

• Problem: When risk data is scattered across siloed systems with disparate taxonomies, getting a clear, enterprise-wide view of risk is nearly impossible.

• Overcome with ASSURTIV:  

• Develop and implement unified taxonomies for core GRC elements (assets, risks, controls, etc.).

• Prioritize data consolidation and invest in integrated GRC technology.

1. Resistance to Change:

• Problem: Implementing an integrated GRC approach often brings disruptions to entrenched ways of working, leading to pushback.

• Overcome with ASSURTIV:  

• Clearly communicate the benefits of transformation to all stakeholders.

• Emphasize training and support programs to ease the transition.

• Recognize and reward early adopters.

Conclusion:

Starting the journey to GRC maturity might seem tough, but remember, each step you take is a move towards success. Tools like ASSURTIV are not just tools but guides that help you through the maze of challenges. They assist in measuring the worth of GRC, getting executive support, breaking down barriers, making the best use of resources, bringing standards together, and overcoming opposition. As you walk this path, your organization grows, leading to informed risk management, regulatory compliance, and the achievement of strategic goals.

So why wait? Connect with ASSURTIV today and start your trip towards GRC maturity. Your journey to success begins now.