New Report Shows Unified GRC Approach Enhances Risk Management

A new research report finds organizations can greatly enhance their ability to proactively identify and mitigate risks by consolidating governance, risk and compliance (GRC) activities into a single technology platform, rather than using multiple disconnected solutions. The 2024 GRC Strategies, Teams and Outcomes Report from GRC software provider LogicGate revealed a stark divide in risk management effectiveness based on whether firms take a unified or fragmented approach to GRC.

The report, which surveyed 350 risk, cybersecurity and compliance leaders across industries, found that 59% of organizations utilizing just one comprehensive GRC platform strongly agreed they have effective risk management capabilities. However, only 15% of firms using two separate GRC tools felt they could proactively tackle risks in this manner.

"Security, risk, and compliance needs look different for every organization depending on their industry and applicable regulations, among other factors," LogicGate's co-founder and CEO stated in a press release. "However, our research identified a common factor across optimal GRC programs: utilizing a single, comprehensive GRC solution to uphold program objectives that support the organization's core business goals and desired outcomes. By using a holistic approach to streamline GRC, organizations can better mitigate risk and deliver heightened business value."

The report's findings illustrate the multidisciplinary nature of modern GRC programs. While 81% of risk management teams claim full oversight of that functional area, 40% of cybersecurity teams and 37% of compliance teams play vital supporting roles in risk-related processes.

At the same time, consolidating GRC tools appears to pay cost efficiency dividends. Organizations using a single GRC solution spend 21% less on their overall program compared to those deploying two or more separate tools, LogicGate's data showed.

As GRC budgets modestly increase, the research indicates hiring and software investment remain the top priorities. Staffing accounts for 46% of spend while GRC platform expenditures comprise 18% on average.

Looking ahead, cybersecurity threats, geopolitical instability and social/reputational risks were cited as the primary concerns that could impact business performance over the next 12 months.

LogicGate's report portrays an environment where GRC demands are intensifying amid an increasingly risky operating landscape. By unifying tools and processes under a holistic platform, the research suggests, organizations can enhance their ability to proactively tackle those challenges in a more cost-effective manner.

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