Governance, Risk & Compliance Advisory Blog

Insights on best practices related to IT Audit & Compliance

Integrated GRC - Convergence Between Governance, Risk and Compliance

clock August 27, 2010 21:28 by author nirav
Governance, risk and compliance refer to the overall governance structures, policies, technology infrastructure and remediation mechanisms that an organization builds to manage its risk and compliance obligations.

 

The solution has become a part of the problem

Threat of business failure and the penalties of non compliance are leading organizations to expand their governance, risk management and compliance (GRC) initiatives. The expansion of governance, risk and compliance activity has created a costly and complex web of disparate structures, policies, autonomous committees and reports in these organizations. It is thus, not uncommon to see dozens of committees dealing with different aspects of same kind of risk (some of which are even overlapping). Still, GRC has failed to prevent corporate scandals, major regulatory non-compliance issues, and most importantly failed to achieve its prime objective - to improve business performance and efficiency.

 

Bottom-line - Organizations keep asking themselves: What is my GRC ROI? 

 
Integrated GRC - Convergence between governance, risk and compliance

Adopting an integrated approach for managing their governance, risk and compliance activities has become a top priority for those organizations who have witnessed time and revenue leakage in pursuing independent GRC initiatives. However most of these same organizations end up interpreting Integrated GRC in a wrong way and thus they fail to achieve expected benefits out of it. Integrated governance, risk and compliance is not a single, monolithic GRC structure with a single, one-way bottom-up reporting line. Rather, it is a mutual, two-way approach towards eradicating duplicated effort, complexity and cost and about greater communication, collaboration, and cooperation.

An integrated GRC brings together the focus on complex and disparate risk and compliance activities and directs organizational efforts more efficiently, in alignment with organizational strategy and culture. Also a more comprehensive view of risk management and regulatory compliance simplifies business processes and systems and improves control over them.


Integrated GRC offers several benefits to the organizations pursuing them, most notable ones are:

 
•Identifying and managing risks more quickly
•Reduced costs through reduction in duplication and identification of synergies
•Greater collaboration among stakeholders both external and internal
•Greater focus on key business processes and activities
•Identifying and responding to opportunities/ threats more quickly
•Improved control and assurance environment
•Improved financial and non-financial reporting
•Supporting business units more effectively

More to be continued in our next blog... 

Be the first to rate this post

  • Currently 0/5 Stars.
  • 1
  • 2
  • 3
  • 4
  • 5


An Industry Perspective on the Evolving Role of IT Auditors

clock June 27, 2010 02:27 by author nirav

The role of information technology (IT) control and audit has become a critical mechanism for ensuring the integrity of information systems (IS) and the reporting of organization finances to avoid and hopefully prevent future financial embarrassments. In early days, IT auditing (formerly called electronic data processing (EDP), computer information systems (CIS), and IS auditing) evolved as an extension of traditional auditing. At that time, the need for an IT audit function came from several directions

• Auditors had realized that technology can aid in the audit assessment
• Corporate and information processing management recognized that computers were key resources for competing in global markets
• Professional associations and organizations, and government entities recognized the need for IT control and audit ability

Initially, auditors with IT audit skills were viewed as the technological resource for the audit staff. The audit staff almost always used them to get technical assistance. However with the passage of time and more importantly with the growth of technology this attitude has changed. The IT auditor's role has evolved to provide assurance that adequate and appropriate controls are in place. However it will still be the management’s responsibility to ensure that the controls are in place. The audit's primary role is to provide a statement of assurance as to whether adequate and reliable internal controls are in place and are operating in an efficient and effective manner. Therefore, whereas management is to ensure, auditors are to assure. 

Today, IT auditing is a profession with conduct, aims, and qualities that are characterized by worldwide technical standards. It requires specialized knowledge and practicable ability, and often long and intensive academic preparation. Growth in technology has once again contributed and provides an IT auditor with better theoretical and empirical knowledge base to the IT audit function. Owing to the rapid diffusion of computer technologies and the ease of information accessibility, knowledgeable and well-educated IT auditors are needed to ensure that effective IT controls are in place to maintain data integrity and manage access to information. Organizations today operate in a dynamic global multi-enterprise environment with team-oriented collaboration and place very stringent requirements on the telecommunications network. The design of such systems is complex and management can be very difficult. Organizations are critically dependent on the timely flow of accurate information. This means that the products for which IT provides consumer feedback will also be of high quality, rich in information content, and come packaged with a variety of useful services to meet the changing business conditions and competition. This is also a key area in which an IT auditor through his audit reports provides key insights to the top management.

Going forward IT auditors will now have to act as change agents and provider assurance to management on the controls implemented. They will need to have expert knowledge about IT risks and controls, and to be effective, they need to be business-savvy and able to engage with top management and be proactive in initiating IT governance programs.

Be the first to rate this post

  • Currently 0/5 Stars.
  • 1
  • 2
  • 3
  • 4
  • 5


Search

Calendar

<<  September 2010  >>
SuMoTuWeThFrSa
2930311234
567891011
12131415161718
19202122232425
262728293012
3456789

Archive

Tags

Categories


Blogroll

Disclaimer

The opinions expressed herein are my own personal opinions and do not represent my employer's view in anyway.

© Copyright 2010

Sign in