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Financial services companies rely heavily on a consistent approach to handle Governance, Risk and Compliance (GRC). Businesses in this space have a lot to lose if this aspect of the organisation is not carefully minded, so there is no room for errors. Tech plays an important role and can assist in this process – but most businesses are not utilising it to its full potential. This article will go through some of the benefits of applying technology in GRC for financial services companies.
Achieving a mature level of compliance is easier than it looks if you know how to navigate this subject. Tech can provide the consistency required for GRC while automating specific processes and facilitating time-consuming tasks. This should enable your business to transform GRC into a competitive advantage, giving you the confidence to undertake audits, increase valuation and face organisational challenges.
Our team can provide you with the tools and methods to improve your maturity step by step. If you’re looking for specialised assistance, Book a free Discovery Call! We can handle the heavy lifting with full visibility while you focus on your priorities.
The first benefit you should think of when implementing technology in GRC for financial services consists of the operational and relationship improvements you can obtain by achieving a higher level of regulatory compliance. This may sound obvious to some, but it’s relevant across all levels of the organisation.
Having a seal of approval from an auditor, a global standard or certification demonstrates that you are running a well-oiled machine and able to confidently deliver on operational best practices. Reaching this standard is not for everyone, and you have to earn it. This shows a great sign of maturity and transmits trust to employees, partners and customers.
This reflects into more confidence from investors and brands, as well as in your own operational ability. Which, in turn, could also reflect in more referrals from your stakeholders. A high level of organisational maturity stimulates a better approach in several areas of your business.
Information security is vital for financial services, and in this day and age, this information lives in your servers. This means that to comply with regulations and manage risks, your business must have a robust cyber security strategy in place.
Implementing the best-in-class technology for GRC for financial services will ensure your data remains safe and protect you from ever-growing cybersecurity threats. Standards such as ISO27001 provide clear guidelines and expectations from an organisation, which result in a high level of protection against cybercriminals.
Having such tools in place should make it easier to comply with regulations such as the GDPR, which can impose hefty fines on an organisation if they fail to protect customers’ data. For a financial services business, falling for a cyberattack could expose particular vulnerabilities and cause tremendous reputational damage. Knowing how to utilise technology in GRC for financial services is key to managing this risk.
One of the benefits of treating GRC as a competitive advantage is an increase in valuation. This is a big deal for financial services companies, as organisations in this space are constantly involved in mergers and acquisitions. Having a mature business with technology supporting GRC means you’ll have more evidence to present and more tools to help you achieve your KPIs.
Ideally, when thinking about business valuation, you’re looking for records such as working capital and accounts receivable turnover. Technology in GRC for financial services could provide detailed reports with confidence and increase efficiency for other metrics. Your business could have an improved budget creation cycle time and faster invoice turnaround. Additionally, you can probably expect a better payroll/headcount ratio, considering the time and effort needed from your employees may be significantly improved.
All of these benefits will impact your brand image towards stakeholders. It’s easier to trust a mature company with due diligence and processes in place – and people are very good at spotting if that’s made up!
The maturity that comes from utilising technology in GRC for financial services can be translated into a better reputation and generate trust from investors and partners. This means more referrals and more organic growth. Trust can effectively increase your portfolio, just as the lack of confidence can severely impact your income.
Now that the benefits of implementing technology in GRC for financial services, you might be looking for the next step to do it. We have a good deal of content explaining how to handle technology risk for financial services, but the best way forward is to seek specialised assistance and establish the next steps with someone who understands the challenges ahead.
Utilising technology in GRC is the way forward, but implementing this tech and securing it involves a strategic approach tailored to your business needs. Depending on your current level of maturity and how your processes are structured, your business may need more or fewer inputs to achieve its desired outcomes.
We have in-depth knowledge of utilising technology to develop GRC for financial services, and our team is here to help. Our structured approach to compliance means you’ll no longer fear audits. Plus, you’ll be able to reap the benefits mentioned rather sooner than later. Book a Discovery Call for a free, no-commitment chat with our specialists, who’ll look to understand your needs and propose the best solution.
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