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An Expanding Risk Landscape, With Heightened Scrutiny
Internally, companies are increasing their focus in areas such as vendor selection and vendor risk management, Zitting said. They are also beginning to audit carbon usage across the organization and supply chain. Debrie noted that externally, the risk landscape has expanded to include new areas of fraud like the risk of business disruption, which the pandemic brought front and center.
It’s vital to give employees the channels and confidence to speak up if they see something, Debrie said. Regulators are intensifying their attention. The European Union recently issued a new directive on whistleblowing, and a draft directive on managing corporate due diligence is scheduled to take effect in 2023.
Whether spotting new market opportunities or keeping compliance and risk management on track, GRC oversight starts with getting the right people the right information at the right time. We recommended keeping tabs on the GRC issues that people are requesting guidance on. Trends here can help shape GRC strategy and response.
Effective management of GRC issues, from environmental risk to human rights risk to social risk, begins with collecting, sharing it with the right people, and analyzing it in the right way.
The Heightened Role and Responsibilities of the Board
Compliance and Risk management experts anticipate a heavier reliance on boards to be responsive on GRC issues. Because boards have more data, they’ll be expected to use this information to credibly challenge management when needed in a more timely manner.
Boards can increase their involvement by starting small. Pilot projects can identify organizational pain points and lead to quick wins. Creating informal committees helps foster trust and collaboration among members.
Experts encourage boards to put tools in place to monitor the metrics that guide their decisions. Once a process is established, they can utilize robotics and robot data automation to bring them data in real time – elevating those insight to the board level.
Throughout, board members should continue to educate themselves on GRC issues, particularly related to digital transformation.
Diligent convened an expert virtual panel, “The Future of GRC,” moderated by Vice President of Product Marketing Brittany Clark, to discuss the top GRC trends for 2022 and implications for boards, directors and executives.