Corlytics & Verdane Deal Reflects Surging Growth in GRC Industry

In a resounding validation of the growing importance of governance, risk management, and compliance (GRC) technology, Corlytics has secured a substantial investment from Verdane, marking what could very well be a pivotal moment in the evolution of the GRC industry. This strategic partnership serves as a bellwether for the remarkable growth trajectory and importance of the broader GRC and RegTech sectors.

Regulatory and risk environments today have become increasingly dynamic, and corporations are witnessing a shift in their approach to governance, risk, and compliance. According to the 2023 Thomson Reuters Risk & Compliance Survey Report, 70% of corporate risk and compliance professionals have observed a transition from check-the-box compliance to a more strategic approach over the past few years. This shift underscores the growing recognition of the strategic importance of effective GRC management in today's business landscape.

Similarly, according to the same survey, nearly half (49%) of surveyed corporate risk and compliance professionals identified standardizing risk and compliance frameworks across their organization as a key measure to decrease complexity and cost in the risk and compliance process. In this context, Verdane's investment in Corlytics assumes paramount significance. It underscores the rising demand for sophisticated GRC solutions capable of navigating complex risk and regulatory frameworks effectively.

As organizations grapple with mounting compliance and risk challenges, there is an increasing need for innovative technologies that streamline GRC processes and mitigate regulatory risks. The investment from Verdane signifies broader opportunities for growth and innovation within the GRC and RegTech sectors. With Verdane's support, Corlytics aims to accelerate its expansion efforts, capitalize on emerging market opportunities, and strengthen its position as a trusted partner for organizations navigating regulatory and risk management complexities.

The significance of Verdane's investment, however, extends beyond Corlytics, reflecting the growing importance of technology-driven GRC solutions in today's business landscape. As highlighted by PwC's 2021 Consumer Intelligence Series Survey, 60% of executives feel that their organizations are investing more time and resources in complying with laws and regulations, underscoring the increasing emphasis on, and investment in, regulatory adherence. On top of that, nearly two-thirds (65%) of corporate risk and compliance professionals believe that leveraging technology to automate manual processes would aid in reducing the complexity and cost of risk and compliance, according to the 2023 Thomson Reuters Risk & Compliance Survey Report.

Growing Complexity of Business Operations & The Scope of GRC

Today's rapidly evolving business landscape faces unprecedented levels of complexity and dynamism, stemming from factors such as globalization, technological advancements, and shifting regulatory landscapes. As organizations expand their operations across borders and engage with an ever-growing network of third-party vendors and partners, the need for robust governance, compliance, and risk management practices throughout the extended enterprise becomes paramount. The intricacies of modern business operations extend far beyond traditional boundaries, requiring organizations to navigate a labyrinth of interconnected relationships and dependencies. In this context, effective governance frameworks serve as the bedrock for ensuring compliance with regulations, mitigating risks, and safeguarding the organization's reputation and stakeholders' interests.

A Deloitte survey revealed significant insights into the challenges faced by organizations regarding third-party risk management. The survey found that a staggering 74% of respondents experienced at least one third-party related incident in the past three years, indicating the prevalence of such risks in today's business environment. Additionally, over half of the respondents reported an increase in their dependence on third-parties over the past year, highlighting the growing complexity of managing external relationships. However, despite the escalating risks, only a mere 20% of organizations have integrated or optimized their extended enterprise risk management mechanisms, suggesting a gap in preparedness. Furthermore, a strikingly low 11% of respondents feel fully equipped to tackle the heightened uncertainty in the external environment, underscoring the need for enhanced risk management strategies to mitigate these evolving threats.

In this era of digital transformation and escalating regulatory pressures, organizations must adopt a proactive approach to governance and compliance. The Deloitte survey findings further underscore the imperative for businesses to fortify their governance, risk management, and compliance mechanisms and enhance their resilience in the face of evolving threats. By embracing innovative technologies and strategic partnerships, enterprises can strengthen their ability to navigate the complexities of today's complex business environment effectively. Verdane's investment in Corlytics not only underscores a broader acknowledgment of the growing importance of governance, risk, and compliance solutions in addressing the evolving needs of modern businesses.

The growth and evolution of the GRC and RegTech sectors are indicative of a broader trend towards an increased emphasis on compliance and risk management across industries worldwide. As companies continue to navigate complex regulatory landscapes and prioritize GRC, there's ample opportunity for innovation and addressing these pressing challenges. Corlytics' partnership with Verdane underscores the overall industry's potential for expansion and innovation, offering a glimpse into the continued growth and significance of GRC solutions on a global scale.

The GRC Report is your premier destination for the latest in governance, risk, and compliance news. As your reliable source for comprehensive coverage, we ensure you stay informed and ready to navigate the dynamic landscape of GRC. Beyond being a news source, the GRC Report represents a thriving community of professionals who, like you, are dedicated to GRC excellence. Explore our insightful articles and breaking news, and actively participate in the conversation to enhance your GRC journey.