GRC software solutions for effective governance and risk management

Software for GRC (governance, risk, and compliance) is designed to fulfill the fundamental objectives associated with governance, managing risk, and ensuring compliance. 

These platforms help organizations steer through the complex maze of business growth, reputational considerations, stakeholder and investor concerns, and customer satisfaction—all while avoiding security risks and upholding compliance requirements.

If you’re shortlisting such a solution for your organization, you may wonder where to start: What key features should you look for, what should your decision criteria be, etc.? In this post, we’ll discuss the key features of GRC tools, other criteria to consider beyond features and functionality, and the risks of failing to make this important investment as your organization scales.

Key takeaways

• GRC software integrates governance, risk management, and compliance, enhancing organizational efficiency and accountability while addressing potential risks.
• Key features of GRC tools include workflow automation, real-time data insights, and predictive analytics, all of which streamline compliance processes and enhance decision-making.
• Effective implementation of GRC software requires training and support as well as an investment in ongoing education. The right software selection not only offers features you need but also contributes to creating an overall culture of compliance.

High level: What is GRC software?

GRC software refers to any application designed to help organizations manage their overall governance, risk management, and regulatory compliance processes. This software typically integrates various functions to streamline and automate the management of policies, risk assessments, internal controls, audits, compliance requirements, and incident reporting.

While different tools can have different features and be targeted at different industries or scales of business, the most common features of GRC tools include:

• Policy management: Helps create, distribute, and track compliance with organizational policies and procedures.
• Risk identification and management: Identifies, assesses, and monitors risks across the organization, often using risk registers and analytics.
• Compliance management: Ensures adherence to laws, regulations, and standards relevant to the organization, often with tools for audits and compliance checks.
• Incident management: Logs, tracks, and manages incidents and breaches to ensure timely responses and corrective actions.
• Audit management: Facilitates internal and external audits by organizing and documenting audit processes, findings, and follow-ups.
• Reporting and analytics: Provides dashboards and reports to help stakeholders understand GRC performance and make informed decisions.

To fully harness the benefits of using such applications, GRC strategies should be ingrained into everyday operational tasks allowing organizations to operate as unified entities. The adoption of these frameworks gives organizations the means to manage every aspect related to governance risk and compliance systematically.

Do you really need it? Some risks of not investing in GRC software

It may be tempting to trust manual systems to save the costs of yet another software investment. Or maybe your organization has been doing ‘just fine’ without such an application to date. However, as organizations scale, the risks of using disparate tools and manual processes will increase. 

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While GRC tools alone don’t guarantee unfailing positive outcomes, relying on disjointed tools or manual systems can set GRC programs back and expose an organization to several risks, which can have significant operational, financial, and reputational impacts. Here are some of the key risks:

Increased risk of non-compliance

Manual tracking and documentation of compliance efforts can lead to incomplete or inaccurate records, increasing the risk of audit failures and associated consequences.

Moreover, without GRC software, organizations may struggle to keep up with evolving regulations and industry standards. This can lead to non-compliance, resulting in fines, legal actions, and other penalties.

Inefficient risk management

Without a centralized system, risk management processes may vary across departments, leading to inconsistent identification, assessment, and mitigation of risks. This can result in unaddressed risks that could escalate into significant issues. 

A lack of centralized systems can also lead to a reactive, rather than proactive, approach. That kind of fast-moving reactivity can cause chaos and disruption for both internal teams and customers. GRC software might have helped avoid it altogether, or at least have handled it in a more measured way.

Operational inefficiencies

Relying on manual processes for governance, risk, and compliance activities can be time-consuming, error-prone, and resource-intensive. This can lead to inefficiencies, increased operational costs, and slower response times.

Without GRC software, different departments may use disparate systems or processes, leading to siloed information, poor communication, and a breakdown in coordination and collaboration across the organization. The larger the organization becomes the more exacerbated this problem will become—and the harder it will be to fix.

Employee disengagement and lack of accountability

If your organization conducts employee satisfaction surveys, you’ll already know the importance of a collaborative and effective workplace. 

Without clear roles and responsibilities, employees may be unclear about their duties in governance, risk, and compliance activities, leading to gaps in accountability, performance and engagement. Ultimately, siloed teams and finger-pointing create a bad work environment that leads to disengagement and employee churn.

Inadequate reporting and visibility

If the ‘right hand doesn’t know what the left hand is doing’, your reporting will also suffer. This can mean that organizations lack the ability to generate real-time reports and analytics on risk and compliance status – or that results from different teams aren’t pulling from a ‘single source of truth.’ 

Inaccurate reporting can also block senior decision-making and prevent leaders, your board, or investors from clearly understanding the organization’s overall risk posture.

Higher risk of data breaches and security incidents

One of the scenarios most organizations dread is a data breach. Without GRC software, it may be more difficult to implement and enforce consistent internal controls, increasing the likelihood of data breaches, fraud, and other security incidents.

Moreover, if a security incident occurs, organizations may experience delays in identifying, reporting, and addressing security breaches, leading to more severe consequences than might otherwise have occurred.

Reputational damage and financial losses

Following from the last point: Should a data breach or security incident occur, failure to effectively manage risks and comply with regulations can lead to negative publicity, loss of customer trust, and damage to the organization’s reputation. This can have long-term effects on customer loyalty and market positioning.

And if that doesn’t move you, the impact on your bottom line will: Addressing compliance failures, security breaches, and risk incidents after they occur can be costly. This includes expenses related to fines, legal fees, compensatory damages, and corrective measures.

Diving deeper: Six key features to look for in GRC software

So how do compliance tools encourage better collaboration and boost an organization’s ability to manage risk, governance, and compliance effectively? First and foremost, if you choose the right tool it will streamline all those disparate systems and reports you have, creating a single and streamlined source of truth for your entire organization to tap into.

Most software includes features designed to streamline and enhance governance, risk management, and compliance processes. 

1. Policy management

GRC software’s policy management feature ensures that organizational policies are consistently developed, disseminated, and enforced. 

Workflow automation plays a crucial role here, reducing manual errors and ensuring that policy updates are promptly communicated across departments. This automation, coupled with comprehensive dashboards, allows for real-time tracking of policy compliance and effectiveness, providing a clear overview of adherence across the organization.

2. Enterprise risk management

Risk identification, risk mitigation, and proactive risk management are at the core of GRC software. This involves conducting thorough risk assessments to pinpoint potential threats and vulnerabilities. 

AI and real-time analytics enhance enterprise risk management. These technologies improve identification and risk assessment and allow organizations to stay agile in the face of evolving threats. By scrutinizing existing processes and technologies, organizations can uncover and address security weaknesses, thereby strengthening their overall risk management framework.

3. Compliance management

With increasing regulatory demands, compliance management within GRC software is essential for reducing exposure to compliance risks. The integration of AI and real-time monitoring allows for immediate notifications of non-compliance, ensuring that organizations can respond swiftly to maintain regulatory adherence. 

Robotic Process Automation (RPA) further streamlines compliance management by automating oversight and reporting functions, making the entire process more efficient and robust.

4. Incident management

GRC software’s incident management features enable organizations to log, track, and resolve incidents in a systematic manner. Real-time analytics and AI ensure that incidents are identified and responded to promptly, reducing the potential for escalation. 

5. Audit management

GRC software simplifies audit management  (both internal audits and external ones) by automating audit processes and using centralized record-keeping. The software provides real-time insights that help auditors focus on high-risk areas and ensure that audits are thorough and effective. 

By leveraging AI, GRC tools can also predict potential compliance issues that may arise during audits, allowing organizations to address them proactively.

6. Reporting and analytics

Reporting and analytics are fundamental to data-driven decision-making within GRC software. Predictive analytics powered by AI enables organizations to anticipate compliance risks and take preventive actions. 

The comprehensive dashboards and real-time insights allow organizations to adapt their strategies swiftly, ensuring that decision-making is always informed by the latest data. These advanced reporting tools not only enhance business performance, but also provide a deeper understanding of governance and risk management processes.

Beyond features: Nine other decision criteria to consider

While these features will power your organization’s day-to-day GRC efforts, successful outcomes with any application also depend on user engagement. So, considering how your employees use these tools is key. This is where user experience, onboarding and training, and support also come in.

1. A clean and easy user experience

Nobody wants to use a tool that is clunky, restrictive, or confusing. Even if the features are as robust as can be, if the interface is unpleasant, employees are likely to revert to the familiar way of doing things (even if it was sub-optimal).

When choosing GRC software, look beyond the features spec sheets at the actual interface. A well-designed, intuitive interface will ensure that users can navigate the software easily, reducing the learning curve and enabling quicker adoption across the organization. If the software is cumbersome or difficult to use, employees may resist using it, which can undermine the effectiveness of your GRC efforts.

2. Supportive onboarding and training

Effective onboarding is essential to facilitating a seamless adoption process for new GRC software while also mitigating opposition to such transitions. If teams are change-resistant, clear communication regarding the advantages of using GRC solutions will help cultivate a positive attitude toward their uptake.

Ask your proposed vendors about their onboarding and training processes and plan to invest time and effort in these crucial steps. To promote confident engagement with new GRC systems, thorough training and support are indispensable. 

These strategies help promote acceptance and utilization among users, which leads to more effective implementation of GRC solutions.

3. Continuous learning

Education isn’t just part of the onboarding process—it’s a continuous process. The best GRC solutions offer built-in resources for ongoing education, such as tutorials, webinars, networking events, communities, and knowledge centers that keep users informed about new features, best practices, and regulatory changes. 

This continuous learning component ensures that your team stays proficient in using the software and up-to-date with the latest industry developments. Moreover, it empowers employees to become thought leaders in their space, helping them adapt quickly to new challenges.

4. Stellar support

Support is essential for maximizing the value of GRC software. Reliable vendor support ensures that any issues, whether technical or functional, are resolved quickly, minimizing downtime and disruptions to your governance, risk, and compliance processes. 

Look for GRC providers that offer robust support, multiple communication channels (such as chat, email, and phone), and a proactive approach to customer service. Access to knowledgeable experts and quick resolution times can significantly enhance user satisfaction and ensure the smooth operation of your GRC program.

5. Integrations

Effective integrations allow for the smooth exchange of data between the GRC platform and other enterprise software such as Enterprise Resource Planning or ERP systems, Customer Relationship Management or CRM platforms, and security tools. 

This connectivity streamlines workflows, enhances data accuracy, and reduces the need for manual data entry, leading to more efficient and effective governance, risk management, and compliance processes. When evaluating GRC software, ensure it supports integration with your current tech stack and offers APIs or connectors for easy setup.

6. Scalability 

Scalability is a crucial consideration when choosing GRC software, especially for organizations that anticipate growth and evolving compliance needs. Your GRC solution should be capable of scaling with your business, accommodating an increasing number of users, expanding data volumes, and more complex processes as your organization grows. 

Importantly, scalability in GRC software also means the ability to adapt to new compliance frameworks easily. For instance, if your organization is initially focused on SOC 2 compliance, but later needs to meet ISO 27001 standards, the software should support a seamless transition between these frameworks.

Additionally, as your organization scales, multi-framework compliance becomes increasingly important. GRC software that can manage multiple compliance frameworks simultaneously allows your business to meet various regulatory requirements without duplicating efforts. This capability not only saves time and resources, but also ensures that as your organization enters new markets or industries, it can maintain compliance across all relevant standards. 

7. Vendor reputation and track record

The reputation and track record of the GRC software vendor are important indicators of the product’s reliability and the support you can expect. Established vendors with a strong history in the GRC market are more likely to offer stable, well-supported products with a proven track record of success. 

It’s important to research customer reviews, case studies, and industry awards to gauge the vendor’s reputation. A vendor with a solid track record is more likely to provide consistent updates, robust support, and a product that evolves with the market and regulatory landscape.

8. Compliance with industry standards

GRC software shouldn’t just talk the talk—it should walk the walk! Ensuring that your GRC software complies with industry standards is critical, particularly if your organization operates in a highly regulated sector. For example, Thoropass is certified for several frameworks including SOC 2, ISO 27001, and HITRUST i1.

The software should support compliance with relevant regulations, such as GDPR, HIPAA, ISO standards, or other industry-specific requirements. A GRC platform that is built to align with industry standards can provide more confidence in the accuracy and reliability of its risk management and compliance processes.

9. Cost

Every organization has a budget, and while GRC is not an area to skimp on, having a realistic budget and fully understanding the costs is key when embarking on any procurement journey. 

When evaluating cost, it’s important to consider not just the upfront price but also the total cost of ownership, which includes implementation, training, support, and any additional fees for updates or integrations. 

It’s also essential to weigh the cost against the value the software brings in terms of improved efficiency, risk reduction, and compliance assurance. The best GRC software should offer a balance between affordability and functionality, ensuring you get the most value for your investment while meeting your organization’s needs.

Your best choice: How Thoropass stands apart

Thoropass offers key features such as managing 100% of audits within the platform and ensuring compliance with frameworks like SOC 2 and GDPR. This comprehensive platform is designed to assist organizations with their compliance and audit requirements, making it a top choice for many businesses.

The integration of these tasks within one system makes the process more straightforward, allowing for an efficient means of fulfilling regulatory mandates. Thoropass assists companies in conforming to multiple standards, such as SOC 2, ISO 27001, PCI DSS, HITRUST, HIPAA, and GDPR.

By offering an inclusive solution for both compliance and audit-related activities, Thoropass bolsters organizational reliability and compliance. It is a crucial asset for any business aiming to uphold stringent governance protocols alongside effective enterprise risk management strategies.

Achieving compliance faster

Thoropass enables organizations to expedite their compliance process significantly, allowing them to fulfill 40% of their compliance requirements in only a few hours. This swift achievement can considerably shorten onboarding times while making sure that businesses stay compliant promptly, avoiding any unnecessary delays.

Reducing audit time

Organizations utilizing Thoropass have experienced a remarkable decrease in audit time, averaging a 67% reduction. This facilitates more streamlined audit cycles, enabling these organizations to allocate their focus and resources to other vital aspects of their operations, thereby boosting overall efficiency.

Recognition and awards

Thoropass has received acclaim for its swift expansion and innovative approaches to compliance solutions by securing a spot on the prestigious 2024 Inc. 5000 List, ranked at number 427 among America’s rapidly growing private enterprises. Thoropass was also named the Best Compliance Solution for Enterprises award at the 2024 Cloud Security Awards. These achievements emphasize Thoropass’s dedication to superior performance in reshaping the landscape of compliance security with its solutions.

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Conclusion: GRC software’s role will continue to evolve and expand

The right software investment is an important part of every modern organization’s GRC strategy, offering numerous benefits such as improved efficiency, enhanced security, and a unified platform for managing governance, risk, and compliance activities. By automating manual processes and integrating advanced technologies like AI and GRC software helps organizations stay ahead in an ever-changing regulatory landscape.

As we move forward, the importance of GRC software will only continue to grow. By choosing the right GRC solution for your organization and implementing it effectively, you put your best foot forward to meeting compliance requirements, mitigating risks, and reliably achieving your business objectives. 

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