BPM Analytics

Balancing BPM and governance, risk, and compliance (GRC)

Constant transformation and adaptation are the undeniable truths of the modern business landscape, with many internal and external factors pushing businesses to change their processes, systems, structures, and workflows. The ever-evolving business landscape comes with a highly dynamic regulatory landscape, where regional and international regulations are constantly evolving to catch up with technological advancements and evolving stakeholder expectations.

The concept of a GRC (Governance, Risk management, and Compliance) framework focuses on the aspects of regulatory compliance and operational resilience. It brings together various departments and stakeholders, helping them navigate the complexities of the modern compliance landscape and achieve desired business outcomes. Business processes play an integral part in achieving this.

But what role does a GRC management system play for modern businesses, and how can you balance GRC performance with business process management (BPM) services?

Governance, risk, and compliance (GRC) programs: The need of the hour

Outsourcing and offshoring solutions have simplified many things for businesses around the globe. But at the same time, they are also increasing complexities, exposing businesses to new risks and threats. Moreover, governing bodies around the world are implementing new regulatory and compliance requirements on businesses to keep up with technological advancement and protect the interests of stakeholders. As a result, GRM management solutions have gained increased importance across all industries.

But what are the key characteristics of an effective and sophisticated GRC system?

Transparent and independent governance structures

Gone are the days when compliance was a responsibility solely of the legal department, and GRC programs were just a tick-in-a-box. Now, the entire hierarchy – from transaction processes to the Board – must understand the laws and operational regulations to understand the impact of their actions. The GRC programs must be sophisticated enough to deal with emerging internal and external risks with a robust, transparent, and independent governance structure for timely and accurate escalations.

Robust risk management and mitigation systems

Businesses today are constantly exposed to ever-evolving risks and threats – both internal (operational inefficiencies, system failures, or employee misconduct) or external (supply chain disruptions, cybersecurity threats, regulatory changes, or economic downturn). An effective GRC management system is central to robust risk management and mitigation that can allow businesses to survive and stay competitive.

Improved regulatory compliance

As self-regulations have failed, governments have responded by enacting regulations that will curb the reckless behaviour of corporations that can compromise stakeholder interests. Facing the ever-growing regulations – many of which are principles-based – companies need specialised expertise and knowledgeable compliance teams to be proactive in risk management and navigate the dynamic legislative landscape.

Balancing business process and GRC management systems

Looking at the key characteristics of an effective GRC management system, it is clear that processes are at the core. In the past, businesses have relied on external consulting firms for GRC management solutions. However, these consulting firms do not own the responsibility for implementing these solutions. This is where business process management (BPM) services come into the picture, tailoring the adoption of GRC best practices to achieve compliance goals and business objectives.

Here are the four key focus areas you must consider for striking the right balance between business process performance and governance, risk management, and compliance.

Risk management

The first step can be identifying and documenting the risks relevant to the business. You can build risk libraries – structured into different categories and aspects – with the help of stakeholders across the company. These can help put the risks into a business context and document dependencies to define ownership and responsibilities for assessing each risk. Based on this information, you can define rules for risk assessment and how to proceed with the results to balance BPM and GRC performance.

Control management

Knowing which controls – preventative or detective – are in place can help find and assess the associated risk accordingly. Reference content and AI can play a pivotal role in finding new controls or improving the existing ones. Regularly checking whether the controls are working as expected and taking corrective action as necessary is the key to effective GRC management. Control ownership is the key here, wherein BPM solutions can help assign responsibilities and automate process mining to ensure effective control management.

Policy management

Not just controls but policies are also critical to a GRC management system as well. It can be a simple publication of the policy or confirmation that employees have read the policy and attest that they will adhere to it. Regular review, update, or retirement of policies – per stakeholder requirements and regulatory requirements – is necessary if you want to stay compliant while meeting the business objectives.

Regulatory management

The last but most important aspect is regulatory management, ensuring compliance with laws and regulations relevant to the company. Showing compliance with the relevant legislation is the key. Well-defined roles and responsibilities can help ensure transparency and accountability for compliance assessment and management.

These are interconnected areas, and a siloed approach to GRC management will not work. Modern business process management services facilitate access to integration and communication tools that can bring all stakeholders together and align their interests to strike a balance between GRC performance and process performance.

How can Infosys BPM help?

Infosys BPM business process management services give you access to a digital framework that can help you leverage next-gen technologies to deliver a design-led experience to your customers while being compliant with relevant laws and regulations.

Infosys BPM can help you navigate digital transformation across industries and functional verticals while ensuring governance, risk management, and compliance within the dynamic regulatory landscape.