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... 

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Measuring IT Security Effectiveness

clock May 29, 2010 16:44 by author nirav

In business and accounting, Information technology controls (or IT controls) are specific activities performed by persons or systems designed to ensure that business objectives are met. A good information security system should be implemented by subject matter experts in information security – people who understand risk as well as the importance of using the right internal / external controls that will not only protect data but also contribute towards meeting organizational objectives. To be effective it is also important that the information security policy being implemented also has good management support. This is where the problem begins because many companies that have chosen to set up an expensive information security system but don’t always realize why or how they came to choose its implementation in the first place.

So why should a company measure the information security policy it has implemented. A few industry pointers are listed below:

• To show ongoing improvement,
• To show compliance (with Standards, contracts, SLAs, OLAs, etc),
• To justify any future expenditure (new security software, training, people,
• To identify where implemented controls are not effective in meeting their objectives, and
• To provide confidence to senior management and stakeholders that implemented controls are effective

While on the topic, organizations should also highlight to its stakeholders various advantages of measuring the effectiveness on the security policies which are;

• Proactive tools to measure can prevent problems arising at a later date (e.g. slow networks’, Denial of service, disk failures etc),
• Reduction of incidents,
• Staff motivation, and
• Visible  evidence to auditors, and assurance to senior management

Once organizations have defined the objective and realized that measuring the effectiveness of the security policies has advantages the question arises “What do I measure”

Again industry best practices would suggest that you can break down the information security implementation into the following categories:

1. Management Controls:
These would typically include the Security Policy and procedures IT Policies, and corporate strategy for information security and awareness, Business Objectives, Management Reviews.
2. Business Processes:
This would include conducting the actual risk assessment Risk Assessment & Risk mitigation measures that will be implemented and acceptable risk, as well as data retentions and disposal measures.
3. Operational Controls:
This consists of the Operational Procedures for providing support to the IT services being delivered. Hence processes like change, incident, availability management etc would be a part of the operational controls
4. Technical controls:
These would typically consist of activities like firewall configurations, AV updates, patch management, content filtering etc.

To measure the controls organizations can also have KPI’s defined for the controls so that the controls can also be mapped back to the organizational objectives.

Sometimes organizational security is one of the top victims of budget cutting in a cost cutting exercise. The most common logic is that although it costs money to implement a information security policy the benefits are not very tangible. This makes it difficult to justify the cost incurred. However organizations need to realize that information security benefits become visible only when a control fails. But when that happens the costs incurred may be too high. Hence the need to measure the controls implemented and presents the benefits to all stakeholders. This helps them understand the many benefits that it can bring to business and also help them understand how they can leverage a well implemented policy to drive the business and shape future organizational policies.

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

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