EGRC Market Trends
Organizations across the globe face regulatory and non-compliant situations which leads to loss of revenue and reputation and becomes a roadblock in their growth path. Governance & Risk Compliance is a collective term and determines an organization’s approach across these three broad level practices. This phenomenon was largely promoted in the first decade of the 21st century and was officially defined as the ‘The collective efforts of an enterprise to reliably achieve the organizational objectives by addressing uncertainty and acting with integrity’. This concept promoted the organization’s objectives to achieve its organizational growth and conducting inter-department activities such as audits, risk management, compliance, evaluating business processes of finance, IT, HR, and other lines of business and even the board itself. Non-compliance can lead to a corporate crisis such as the recently reported crisis of Lululemon Athletica, KFC United Airlines, Weinstein and Company, Wynn Resort, Nestle, Sony, Equifax, Facebook, and NiSource, such non-compliant business policies and ethics can lead to huge reputational risks to a brand and can years to repair.
Press Release: eGRC Market Reach USD 88.48 billion by 2027 | CAGR: 14.0%
Governance processes are established and executed by the directors or the executive board which is reflected in organizational structure with an aim to achieve the organization’s long term and short-term objectives. The following are some of the objectives of establishing governance procedures.
- Establishing and standardize process initiatives
- Encourage the achievement of such initiatives
- Focus on continuous improvement of the business process
- Adopting a more agile approach to the emergence of changes
- Adopting effective change management processes
- Aligning the business processes to achieve the strategic objectives of the company
Risk management is the concept of predicting and managing risks that could become the roadblock of organizational growth, effective risk management leads to an effective mechanism of mitigating such risks. The following are some of the objectives of risk management.
- Ensuring the management of risks is consistent and focusing on achieving strategic objectives of the organization
- Prevent the foreseen risks of the business and provide high-quality products/services to customers
- Meet the statutory and legal obligations of the business
- Minimise loses of the organization including financial and reputational
- Minimize the risks associated with new developments of the organization such as expansion, merger, acquisition, etc.
- Improve the decision making of the board and having clarity of the path ahead.
Compliance refers to establishing and adhering to the mandatory boundaries of the organization such as laws and regulations and voluntary boundaries such as the company’s policies, procedures, business processes. Compliance can be simply defined as the body with internal systems of control that are imposed on an organization to achieve compliance with externally imposed rules and regulations. The following are some of the objectives of compliance.
- To ensure that the organization has internal controls in place to manage and prevent the foreseen risks
- Effective compliance ensures the organizations have a proper code of conduct
- The most important objective of compliance is to prevent, identify, and mitigate any misconduct which would hamper the growth of the organization.
View the detailed analysis and a sample report here: Enterprise Governance & Risk Compliance Market Share & Trend Analysis Report 2020-2027 (PDF)
The banking, financial services, and Insurances (BFSI) industry are the most volatile and it is considered that stringent compliance measures should be in place to adhere to the rules and regulations of the region. With the growing concerns of information security and risk management in the IT industry, it has necessitated having firm governance and risk management integrations into the current business processes. The ever-fluctuating prices of crude oil globally and modifications in the regulations of various countries have initiated the implementation governance, risk, and compliance in the oil and gas industry. These recent developments are acting as the market drivers to grow this industry and have anticipated a stable growth in the upcoming years.
The emergence of the importance of Governance, Risk, and Compliance in various industries has encouraged the SaaS product developers like Oracle and SAP to have an on-cloud solution for governance, risk, and compliance (marketed as GRC cloud) integrated with the current financials solutions. The GRC solution has helped organizations to avoid financial losses and the tedious tasks of a security breach, compliance management, audits, and have promoted the growth of organizations. The GRC cloud is more popular in Europe, Australia, and North America where the organizations are bound to follow stringent regulations.