What Is Governance, Risk and Compliance (GRC) for SAP?
When governance, risk and compliance (GRC) was introduced, it originated to protect public company shareholders. It helped ensure that companies were taking steps to reach their goals, manage uncertainty and keep companies safe from risks that might threaten investments and assets. The Sarbanes-Oxley Act (SOX), a component of GRC, is the legislation that requires public companies to meet audit and financial criteria proving they are free of errors, risk and fraudulent practices.
Increased Risks in SAP ERP
Technology introduced new levels of risk into organizations and heightened the need for IT audits as a part of GRC to decrease threats to systems. Because systems process and house company data and transactions, they are especially vulnerable to attacks and access violations from employees.
Enterprise resource planning (ERP) systems are particularly at risk. SAP reports that 77 percent of business transactions touch an SAP system. That’s a lot of risk. Additionally, as more business systems have migrated to cloud technology, GRC for SAP has evolved as more than a regulatory requirement; it has become a necessary safeguard for all companies – both public and private.
Continuous GRC should be the aim of all companies large and small in order to spot risks across all systems. That’s not a job that can be done easily and accurately with manual processes or subpar reporting and analysis capabilities. You need an instant view that identifies risks by type and level of severity, plus advice on how to fix them.
SAP GRC the Right Way
Doing GRC correctly and comprehensively, however, requires the right tools. Companies that fail to take SAP GRC seriously or invest in the proper solutions, leave themselves open to significant threats to the business.
A 2019 Forrester report, Leverage Intelligent GRC to Drive Business Value, found that investment in GRC can not only reduce risks but also improve profitability and efficiency. Ninety-two percent of companies surveyed expect investments in GRC to increase over the next two to three years.
Today, companies are going beyond mandatory compliance because they realize that compliance alone is not security. Businesses that want to improve security and prevent risks proactively will invest in solutions that allow for automated controls and risk monitoring so that any threats can be found and remediated before they become costly attacks or mishaps.