For companies that are publicly held and are required to comply with government mandated regulations, this can be a daunting task. Complexities within an organization can make meeting these requirements difficult without the use of GRC (governance, risk management, and compliance) software. It brings in all affected departments within a company to be able to use one cohesive software package to implement and provide a strategy to ethically manage a company. For the big players supplying this software, according to RealtimeCampaign.com, sales have been going up and have shown no signs of slowing down.
GRC software encompasses such areas of a company’s departments as IT, auditing security, compliance, and the executive level. One user-friendly interface allows easy compliance and quick monitoring and enforcement in order to manage risk. This allows for common transparency, efficiency, and consistency when meeting the good governance standards. New regulations for the Banking, Financial Services, and Insurance industries, brought on by the worldwide economic crisis of 2008 gave birth to such procedures in data retention and risk management which are required by the Sarbanes-Oxley Act (SOX), HIPAA and Basel II, plus further regional mandates.
GRC software is useful across many of a company’s various departments. Directors in IT are probably the most involved and have to manage the installations of GRC related strategy for the whole enterprise. The legal department has to deal with retaining records for compliance, as do the finance managers, who have to meet those requirements. Plus, risk has to be identified and managed at the executive level, in order to plan the overall strategy for company-wide GRC compliance.
Governance, Risk Management and Compliance (GRC) Software Market 2019 Global Analysis predicts a steady rise in demand through at least the year 2025. You may check this out in a thorough study conducted by Grand View Research, Inc. at their website, where a full market report is available. In it, they found that the GRC industry represents a 2018 market size of $27.8 billion and is estimated to rise by a rate of 12.9% during future years, according to the period they forecasted in their study. They estimate that North America will represent the largest share of the market with 30% of the market by the year 2025, but other countries, such as China, Japan, and India have seen an increased economic expansion and in their infrastructure growth in the area of user-based technologies.
The growing GRC market has seen many software companies vying for their market share. These have included heavy hitters such as SAP, IBM, CA, Oracle and specialized companies like Aravo, which look to compete in the worldwide market. The software typically allows integration of multiple departments, using a common dashboard making it easy to practice the good governance that the complex regulations demand.
With new technologies constantly being invented to help make financial transactions function evermore smoothly, it also brings with it added regulations that must be met. GRC software will be with us for many years to come and continue to help simplify the compliance process.