12 Apr 3 Ways SAP GRC Helps Reduce Compliance Costs
Businesses are facing a growing need of governance, risk, and compliance (GRC) -related regulatory and security pitfalls. The costs of meeting and maintaining a GRC and security program with the wide range of compliance and security regulations are increasing in pace, volume, and absolute dollars—with no signs of slowing down. The challenge has global organizations looking for ways to reduce the costs and risks associated with increasing regulations and security requirements.
SAP GRC gives those involved in GRC and security a focused strategy for managing the risks and governances involved with global requirements — the ‘desideratum’. This requires planning and understanding, because your GRC strategy will have many moving parts. The complexities involved in establishing a GRC blueprint for your organization are best met with an experienced GRC partner.
Your partner will bring experience in your industry and help implement the tools needed for your GRC success. They will work to remove the silos in your business processes, either retiring them or by consolidating and automating them within the appropriate SAP GRC modules.
. The aspects to consider in the beginning of any GRC project are identifying the pertinent requirements, designing the solution for those requirements while maintaining flexibility and adaptability, and ultimately developing and implementing the GRC program in the system. Knowing these key points will help you avoid pitfalls and clear a path toward compliance . Further, the three areas of major concern that can help in reducing compliance costs are: Risk Management, Audit Management, and Fraud Management.
Taking Control of Risk Management
Organizational success starts and ends with risk management. Developing an effective risk management policy is what elevates you the most over the competition and eliminates unnecessary costs such as multiple audits and compliance fees. SAP GRC gives you a wide range of management options—all customizable to fit your current requirements while being flexible enough to adapt as you grow.
SAP GRC lets you proactively plan for risks. During planning, you will design a risk management process flow and select GRC tools and functionalities. With a streamlined suite of processes and strategies aligned with automated or easily-managed software, you will quickly realize ROI. You’ll have drastically-lowered risks and ready for any audit or regulatory situation.
Concise Audit Management for the GRC Win
Reducing the risk of engaging in trade is a great leap forward, but can be limited in impact without an efficient way to handle audit requests. While SAP GRC does not contain any specific modules for audit management, there are a variety of functions and components that drive audit management through innovative process and transaction tracking. The data associated with your daily business operations is automatically sorted and tagged for easy reference by customized audit reporting features.
Automated, on-demand audit reporting is a decisive, robust feature for reducing the risks of compliance. Customization ensures that audit reporting is configured in a way best for your organization. This greatly increases audit efficiency, making audits an area of strength. Your reports can be run in real-time, while granular levels of audit roles can quickly and easily provide access to all auditors while monitoring what they are viewing.
These features contribute to making audits simpler to conduct and pass, while ensuring that all business and trade processes are being followed as designed. The real-time functions reduce instances of fraud, deepening the reduction of operational risk and revenue loss.
Tightening Processes to Reduce Fraud
Reducing the cost of compliance management is directly related to the reduction of fraud through solid identification and tightened controls. Increased investment into your compliance and security management results in less fraud costs. While the investment into the GRC solution may result in a higher implementation budget, the ROI will pay off fairly quickly.
Undermanaged and inefficient business controls and processes are often not discovered until after compliance issues pop up. While GRC will definitely improve your fraud detection and compliance management, you’ll need to have flexible budgetary expectations. Expanding the outer limits of your GRC budget will lower your total cost of ownership through higher levels of compliance and effective audit reporting—while greatly lowering the risks that come with an incomplete SAP GRC solution.
It is Time to Reduce Your Organization’s Compliance Costs
Integrating all of this into one, cohesive system aligned with your business goals is very complex and challenging. There are a lot of technical moving parts, business and regulatory considerations, and you’ll need a partner with an expert level SAP GRC experience. The partner you entrust with your project must demonstrate in-depth SAP ERP and GRC experience and comprehensive compliance knowledge for your industry. Industries come with their own unique assortment of compliance rules, regulations, and security protocols, and your partner will need to know all of them.
Your partner will develop and implement a GRC project that addresses not just compliance, but risk and issue mitigation as well. This must all be integrated within a concise set of monitoring controls, to ensure reduction of compliance costs. .
Aurum Terra, Inc. designs and aligns your SAP GRC implementation to your specific business compliance needs. Our analytical and methodical approach ensures your business can adhere to the most stringent of regulations, keeping you in a constant state of compliance. Contact Aurum Terra to discuss how.