Agile Governance, Risk Management, and Compliance (GRC) is an approach that integrates the principles of agility into the traditional GRC processes.
This method adapts to today’s dynamic business environments by incorporating continuous improvement, collaboration, and adaptability into compliance and risk management activities. Here’s how an Agile GRC framework could look:
i. Principles of Agile GRC
A. Flexibility and Adaptability: Policies, procedures, and controls are designed to be flexible and adaptable to accommodate changes in the regulatory landscape or business strategy.
B. Iterative Processes: Instead of annual or bi-annual reviews, GRC processes are iterative with short review cycles, allowing for frequent reassessments and continual improvement.
C. Empowerment and Collaboration: Cross-functional teams, including compliance, risk management, IT, and business units, work collaboratively, enabling faster decision-making and response to compliance and risk issues.
D. Risk-based Prioritization: Risks are treated not as a homogenous mass but are prioritized based on their impact on the organization’s strategic goals and operational objectives.
E. Integration with Business Processes: GRC is not seen as a separate activity but is integrated into all business processes, ensuring that compliance and risk management are part of everyday activities.
F. Data-Driven Insights: Making use of agile data analytics tools to provide real-time or near-real-time data to support risk management decisions and compliance activities.
ii. Implementing Agile GRC
A. GRC Maturity Assessment: Analyse the current state of your GRC processes to identify opportunities for injecting agility.
B. Agile Methodology Tailoring: Integrate agile methods such as Scrum or Kanban, adapted to suit GRC activities, like risk assessments, audits, and compliance checks.
C. Continuous Monitoring and Reporting: Implementing technologies that enable continuous monitoring for risks and compliance status. This also involves real-time reporting and dashboards.
D. Streamlined Documentation: Maintain agile documentation practices that record information succinctly and are maintained continuously instead of creating large, static documents.
E. Automated Workflows: Utilize GRC software that supports automated workflows, reducing manual tasks and increasing efficiency.
F. Training and Engagement: Provide staff with training on agile methodologies and promote a culture that values the principles of agile GRC.
iii. Considerations for Agile GRC
o Regulatory Requirements: Ensure that agility does not compromise the ability to meet required regulations and standards.
o Risk Appetite: Establish clearly defined risk appetite levels that are compatible with an agile approach, allowing for quicker responses to changes in the risk profile.
o Balance Between Speed and Diligence: While agile is about rapid response and flexibility, there must be a balance to ensure due diligence and the accuracy of GRC processes are not compromised.
o Stakeholder Buy-in: Secure buy-in from stakeholders across the organization who may be accustomed to traditional GRC approaches.
o Scalability: Ensure that the implemented agile GRC approach can scale with the organization’s growth and increasing complexity.
iv. Benefits of Agile GRC
o Improved risk management: Agile GRC helps organizations to identify, assess, and mitigate risks more effectively.
o Enhanced compliance: Agile GRC helps organizations to comply with relevant regulations and standards.
o Increased business agility: Agile GRC helps organizations to make faster decisions and adapt to change more quickly.
o Reduced costs: Agile GRC can help organizations to reduce the costs of compliance and risk management.
v. Key considerations for implementing Agile GRC
A. Agile Governance: Implement governance structures that are agile and responsive to change. This involves establishing clear roles, responsibilities, and decision-making processes that enable quick and effective responses to emerging challenges.
B. Iterative Risk Management: Adopt iterative risk management practices. Instead of conducting risk assessments periodically, integrate risk management into ongoing processes, allowing for continuous identification, assessment, and mitigation of risks.
C. Scalable Compliance Frameworks: Develop compliance frameworks that are scalable and adaptable. Agile GRC recognizes that compliance requirements may change, and organizations need to efficiently adjust their processes to meet evolving regulatory demands.
D. Cross-Functional Collaboration: Encourage collaboration and communication between governance, risk management, compliance, and business teams. Cross-functional collaboration fosters a shared understanding of objectives and facilitates faster decision-making.
E. Agile Frameworks in GRC: Apply agile frameworks, such as Scrum or Kanban, to GRC processes. These frameworks provide methodologies for iterative development, continuous improvement, and adaptive planning within the GRC context.
F. Lean Principles: Apply lean principles to GRC processes to eliminate inefficiencies, reduce waste, and optimize the use of resources. This includes streamlining compliance activities and risk management processes.
G. Automated Compliance Monitoring: Implement automated tools for compliance monitoring. Automation helps in continuous monitoring of compliance activities, ensuring real-time visibility into adherence to regulatory requirements.
H. Adaptive Compliance Training: Provide adaptive compliance training programs. Regularly update training materials and methodologies to keep stakeholders informed about changing compliance requirements and ensure a culture of compliance awareness.
I. Agile Auditing: Adopt agile principles in auditing practices. This involves conducting iterative and risk-based audits that focus on providing timely insights and recommendations for improvement.
J. Continuous Monitoring and Reporting: Implement continuous monitoring and reporting mechanisms. Agile GRC emphasizes real-time visibility into governance, risk, and compliance activities, enabling stakeholders to make informed decisions promptly.
K. Agile Policy Management: Manage policies using agile principles. Regularly review and update policies based on changes in the regulatory landscape, business objectives, and emerging risks.
L. User-Centric GRC Tools: Utilize user-centric GRC tools that are intuitive and user-friendly. This ensures that stakeholders, including non-GRC professionals, can easily engage with and contribute to GRC activities.
M. Agile KPIs and Metrics: Define and measure Key Performance Indicators (KPIs) and metrics that align with agile GRC objectives. Focus on indicators that provide insights into the effectiveness, efficiency, and responsiveness of GRC processes.
N. Feedback Loops and Retrospectives: Incorporate feedback loops and retrospectives into GRC processes. Regularly assess and reflect on the effectiveness of governance, risk management, and compliance activities, making adjustments based on lessons learned.
vi. Some additional resources that you may find helpful
o OCEG GRC Capability Model: [https://www.oceg.org/capability-model/](https://www.oceg.org/capability-model/)
o Resolver: What is Agile GRC? [https://www.resolver.com/blog/agile-grc-agility/](https://www.resolver.com/blog/agile-grc-agility/)
o MetricStream: The Power of Agile GRC [https://www.metricstream.com/insights/power-of-agile-GRC.htm](https://www.metricstream.com/insights/power-of-agile-GRC.htm)
vii. Conclusion
Agile GRC doesn’t offer only a structural approach to risk and compliance; it also represents a cultural shift in the way organizations perceive and manage uncertainty.
It involves integrating risk management and compliance activities into the fabric of daily business processes and encourages a proactive, rather than a reactive, stance on regulation and risk management.
This versatile and dynamic approach makes Agile GRC highly suitable for companies operating in highly regulated industries or facing rapid change from factors such as technology, market conditions, or regulatory environment.
https://www.metricstream.com/insights/power-of-agile-GRC.htm
https://www.resolver.com/blog/agile-grc-agility/
https://www.oceg.org/how-to-build-an-agile-grc-program-slide-deck/
https://www.linkedin.com/pulse/grc-40-agile-dynamic-disrupted-organizaiton-michael-rasmussen