2016-10 2016 GRC Market Analysis, Segmentation & Trendsgrc2020.com/wp-content/uploads/2016/10/2016-10-2016-GRC... · 2016-10-19 · üGRC Advisor Enterprise Subscribers get access

2016 GRC Market Analysis, Segmentation & TrendsState of the GRC Market

October 2016Michael Rasmussen, J.D., GRCP, CCEP

The GRC Pundit @ GRC 20/20 Research, LLCOCEG Fellow @ www.OCEG.orgDO NOT DISTRIBUTE, SUBSCRIBER PERSONAL USE ONLY

2© GRC 20/20 Research, LLC • ww.GRC2020.com

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Terms & Conditions . . .

DO NOT DISTRIBUTE, SUBSCRIBER PERSONAL USE ONLY


Two Things to Note . . .

§ Organizations evaluating or considering GRC solutions are free to ask GRC 20/20 on our understanding and comparison of solutions in the market to meet your GRC requirements.

§ Inquiries are single focused questions that can be answered in under 30 minutes.

§ Complimentary inquiry is only available to organizations evaluating or considering GRC solutions for their internal use.

Complimentary Inquiry

§ GRC 20/20 has an extensive library of RFP requirements across a range of GRC capability areas presented in this presentation.

§ GRC 20/20 can be engaged in RFP development and support projects to streamline your process, gain perspectives learned from other organizations, and to keep solution providers honest in their responses.

RFP Development & Support



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1) GRC Market Definition, Overview & Segmentation

2) GRC Market Drivers & Trends

3) GRC Market Sizing, Forecasting & Predictions

Our Objectives . . .




GRC is the integrated collection of capabilities that enable an organization to:

G) reliably achieve objectives R) while addressing uncertainty and C) acting with integrity.

SOURCE: OCEG GRC Capability Model

The Official Definition of GRC . . .



Risk ManagementRisk management seeks to manage and understand uncertainty by assessing and monitoring risk within context to take action on risk through acceptance, avoidance, mitigation, or transfer.

GovernanceGovernance sets direction and strategy for the organization to reliably achieve objectives. Governance sets the context for risk management, without context risk management fails.

ComplianceCompliance aims to see that the organization acts with integrity in fulfilling its regulatory, contractual, and self-imposed obligations and values. Compliance follows through on risk treatment plans to assure that risk is being managed within limits and controls are in place and functioning.

Governance, Risk Management & Compliance in Context



Are you truly aware of your risks?

“Never in all history have we harnessed such formidable technology. Every scientific advancement known to man has been incorporated into its design. The operational controls are sound and foolproof!”

E.J. Smith, Captain of the TitanicDO NOT DISTRIBUTE, SUBSCRIBER PERSONAL USE ONLY


Realize that everything connects to everything else.Leonardo da Vinci


9© GRC 20/20 Research, LLC • ww.GRC2020.comThe Chaos of Interconnectedness



The Organization Has to be Able to See . . . q The Tree. The individual area of riskq The Forest. The interconnectedness of risk



Change is the Greatest Challenge Impacting GRC Management

contact Carole S. Switzer [email protected] for comments, reprints or licensing requests ©2012 OCEG visit www.oceg.org for other installments in the Anti-Corruption Illustrated Series

011100111001010100

External Risk ChangeMonitor change in the external risk environment to determine how uncertainty in economic, geo-political, environmental, industry, societal, and market forces affect current and needed policies.

MARKET FORCES

INDUSTRY

TECHNOLOGY

COMPETITIVEFORCESGEO-POLITICAL

SOCIETAL FORCES


$

Internal Risk/Business ChangeMonitor changes to the internal environment to identify how changes to strategy, mergers & acquisitions, processes, technology, business relation-ships, and employees affect current and needed policies.

MERGERS &ACQUISITIONS

STRATEGY

PROCESSES

IT

EMPLOYEES

FINANCIALPOSITION

BUSINESSRELATIONSHIPS


Regulatory/Legal ChangeMonitor change in the legal and regulatory environment to determine how pending legislation, court decisions, new/changing regulations, and enforcement actions affect current and needed policies.

COURT RULINGS

ENFORCEMENT

LEGISLATION

REGULATIONS

MONITOR



Regulatory Activity in Financial Services 2008 to 2015

*Note: Tracked activity includes document changes, announcements, and enforcements by regulators.Average Daily Alerts = Total Alerts Year-on-Year / 261 Working Days

SOURCE: Thomson Reuters



Inevitability of Failure: Too Many Approaches There are too many departments sending too many communications in different formats. GRC management is buried in documents, spreadsheets & emails.

Ø Wasted resources through redundancy & overlapØ Excessive emails, documents, and paper trailsØ Poor visibility & reportingØ Files and documents out of syncØ Overwhelming complexityØ Lack of accountability



The Winchester Mystery HouseØ 160 roomsØ 47 fireplacesØ 6 kitchensØ 10,000 windowsØ 65 doors to blank wallsØ 13 staircases abandonedØ 25 skylights – in floorsØ 147 builders/no architectsØ Built without a blueprintØ $5.5 million over 38 years

Confusing Conundrum of GRC Management Processes & Information



Ø Inability to gain clear view of GRC dependencies;

Ø High cost of consolidating GRC information;

Ø Difficulty maintaining accurate GRC information;

Ø Failure to trend across GRC assessment periods;

Ø Redundant approaches limit correlation, comparison and integration of GRC information; and

Ø Lack of agility to respond timely to changing risks, regulations, laws, and situations.

. . . and we hope nothing fails



Driv

ers

Drivers & Trends: Enterprise GRC

Exponential growth in regulatory, risk and business change is making scattered GRC processes and information constantly behind and exposing the organization.

1Constant Change

The growing array of 3rd party relationships with increased regulatory and risk exposure is bearing down on organizations to include in GRC strategies.

2Growing Relationships

Many organizations still find they are encumbered by silos of information that is disconnected, and often have several disconnected GRC platforms in different areas.

3Scattered Information& Platforms

Those that have implemented a GRC platform in the past decade are often finding that the solution is out of date and cumbersome to use when compared to the new generation of solutions.

4Growing Beyond Initial GRC Platforms

There is growing demand and need for the integration of external content and intelligence feeds into the GRC architecture.

5Need for External GRC Content

Tren

ds No platform does everything. Organizations are looking toward an information and technology architecture that integrates GRC, though there often is one central core platform.

1GRC Architecture

Enterprise GRC Platforms are no longer self-contained solutions to manage GRC workflow and tasks, they require strong integration capabilities into a range of business systems.

2

Integration

In a GRC architecture approach, organizations are looking toward a common hub and core for Enterprise GRC but allow for best of breed solutions where they make sense.

3Best of Breed Where it Makes Sense

There is growing demand in RFPs for GRC solutions to have business process modeling capabilities to visually layout and document how business processes function in a GRC context.

4Business Process Modeling

Enterprise GRC is no longer for the back-office, but needs to be intuitive and easy to use for the front-office. New releases are showing improved user interface and mobility options.

5GRC Mobility & Engagement



Varying Levels of GRC Management

Top-down federated GRC management strategy across the entire organization.Enterprise

Division or business unit management strategy

Management being done at a department, function, or process level

DepartmentFunctionProcess

Managed in context of a specific focus, regulation, or issues

RiskRegulation

Issue

Division Business Unit



What is Your Approach to GRC Management?

§ An integrated approach that balances GRC management centralization with distributed participation and collaboration

Federated GRC Management

§ Disconnected departments managing GRC related activities in different ways with little or no collaboration with other departments

Distributed GRC Management



GRC by Design: Federated GRC Management Architecture



A Variety of Frameworks Comprise GRC Activities in the Organization



GRC Capability Model v3.0: Iterative Cycles of Change & Improvement

What – has to be done?Who – is going to do it?Why – does he/she do it?How – will it be done?When – will it be done?Where – will it be done?Why – is it done like this?

KAI“CHANGE”

ZEN“GOOD”



GRC Strategy Within Organizations

GRC Strategy

GRC Technology

GRC Information

GRC Process



360° GRC Contextual Analytics & Intelligence Capabilities

Integrated and mapped together to provide context

Analyzed to understand relationships

Action Items

Distributed & DisconnectedGRC Data PointsDO NOT DISTRIBUTE, SUBSCRIBER PERSONAL USE ONLY


GRC Information Architecture Provides 360° Contextual Intelligence

Strategic

Financial

Operational

Preventive

Corrective

Detective

Complaint

Investigation

Event

Strategic

ProcessDepartment

Regulatory

Values

Contractual

Code of Conduct

Training & Awareness

Policies & Procedures

Owner

Employee

Subject Matter Expert

Controls

Risks

Issues

Roles

Objectives

Policies

Obligations

OrganizationEntity

Asset

Process

process optimizationAll non-value-added activities are eliminated and value-added activities are streamlined to reduce lag time and undesirable variation.

better capital allocationIdentifying areas where there are redundancies or inefficiencies allows financial and human capitalto be allocated more effectively.

higher quality informationIntegrating GRC information allows management to make more intelligent decisions, more rapidly.

.

protected reputationReputation is protected and enhanced because risks are managed more effectively.

improved effectivenessOverall effectiveness is improved as gaps are closed, unnecessary redundancy is reduced, and GRC activities are allocated to the right individuals and departments.

reduced costsReduced costs help to improve return on investments made in GRC activities.



% of GRC 20/20 Inquiries Related to Enterprise GRC Strategies

2012 Inquiries14% of Inquiries Were Related to Enterprise GRC Strategies






Inquiries Received by Role

28%Corpo ra te Comp l i ance

20%IT/Secu r i t y

24%Risk Managemen t

15%Audi t

13%Othe r



EUROPE

28%

47%

4%

6%

3%

8%

Inquiries Received by Geography

NORTH AMERICA

CENTRAL/SOUTH AMERICAMIDDLE EAST

OCEANIA

ASIA

4%

AFRICA



3 Manufacturing

1 Financial Services

2 Utilities

4 Retail

5 Life Sciences

Survey Respondents, Top Industries RespondingTop 5 Industries Asking Inquiries



Inquiries by Organization Size

Large Enterprise

10,001+ Employees

36%

Medium Enterprise

1,001 to 10,000 Employees

56%

Small Enterprise

1 to 1,000 Employees

8%



INTEGRATION: Impact of Non-Integration & Inconsistency

In what ways is your organization adversely impacted by redundant or inconsistent processes for governance, assurance and/or management of performance, risk and compliance?

Difficulty auditing and providing assurance of compliance and/or risk management / 27%

Unnecessary cost due to redundant processes or systems / 22%

Inadequate controls to ensure compliance and risk management / 17%

Difficulty reconciling data / 15%

1

2

3

4

DATA: all 296 respondents, another 10% stated they were not adversely impacted, and 9% were unsure.



GRC Technology Purchasing Plans

50%

9%

7%

6%

13%

15%

Look to ERP Provider for GRC

GRC Platform(s)

Waiting for GRC Tech to Mature

Best of BreedGRC Solutions

Unsure

No New GRC Tech

Which best describes your

organization's plan with regard to new

technology solutions for GRC?

24%

52%

12%

12%In-House

Development

Purchasing New GRC SolutionsUnsure

How would you characterize your

organization's strategy for procuring

technology solutions for GRC?

Expanding Use of Existing GRC Solutions

290 respondents from organization using or considering GRC solutions/technology



Top 8 Objectives in Acquiring New GRC Technology

Increase GRC Analytics & Visibility

Improve Consistency of GRC Information

Reduce GRC Complexity

Regulatory Compliance Requirements

57%

51%

38%

37%

Reduce Risk in the Organization

Improve Performance In the Organization

Lower or Avoid GRC Costs

Increase Reliability of GRC

36%

33%

27%

15%




Top 8 Criteria Looking for in New GRC Purchases

Ease of Use

Price

Functionality

Configurability

53%

41%

40%

39%

Industry Focus

Customer Service

Integration Capabilities

Company Stability/Viability

26%

23%

21%

16%




GRC Budgets Increasing in 2016

19%

17%

19%

19%

3%1%1%

21%

Spending Staying Same as Last Year

25%+ GRC Spending Increase

25%+ GRC Spending Decrease

Unsure

Do you see overall GRC spending (on all aspects, not just

technology) in 2016 increasing or decreasing in

your organization?

10% to 25% GRC Spending Increase

Up to 10% GRCSpending Increase

10% to 25% GRC Spending DecreaseUp to 10% GRC Spending Decrease




Top 8 GRC Purchase Areas – Organizations of All Sizes

Risk Management & Analytics

Compliance Management

Audit Management & Analytics

Enterprise GRC Platforms

42%

37%

36%

35%

IT GRC Management

Policy Management

Business Continuity Management

Internal Control Management

30%

25%

24%

22%




Top 8 Spending Increases in Large Organizations


IT GRC Management


Automated Control Monitoring & Enforcement

64%

59%

58%

58%

Quality Management



Policy & Training Management

58%

56%

53%

52%




Top 8 Spending Increases in Medium Organizations



IT GRC Management

Audit Management & Analytics

71%

68%

57%

52%


Strategy & Performance Management


Automated Control Monitoring & Enforcement

51%

51%

49%

44%




Top 8 Spending Increases in Small Organizations


Strategy & Performance Management



62%

56%

54%

53%

IT GRC Management

Issue Reporting & Management


Quality Management

50%

48%

45%

44%





A market consists of all actual and potential customers with a specific need, which the company tries to satisfy with their product.Scharf / Schubert (1995)



The GRC Market: Technology, Information,& Professional Services

843 technology solution providers that offer solutions related to GRC

GRC Technology Solutions

112 providers with 384 content/intelligence solutions across a range of GRC areas

GRC Intelligence & Content Solutions

1,000+ professional service firms offering services related to GRC

GRC Professional Services Solutions



GRC Technology Segment Description

Enterprise GRC Capability to manage an integrated architecture across multiple GRC areas in a structured strategy, process, information and technology architecture.

Audit Management Capability to manage audit planning, staff, documentation, execution/field work, findings, reporting, and analytics..

Automated Control Capability to automate the detection and enforcement of internal controls in business processes, systems, records, transactions, documents, and information.

Business Continuity Management Capability to manage, maintain, and test continuity and disaster plans, and implement these plans expected and unexpected disruptions to all areas of operation.

Compliance Management Capability to manage an overall compliance program, document and manage change to obligations, assess compliance, remediate non-compliance, and report.

Environmental Management Capability to document, monitor, assess, analyze, record, and report on environmental activities and compliance.

Health & Safety Management Capability to manage, document, monitor, assess, report, and address incidents related to the health and safety of the workforce and workplace,

Internal Control Management Capability to manage, define, document, map, monitor, test, assess, and report on internal controls of the organization.

IT GRC Management Capability to govern IT in context of business objectives and manage IT process, technology, and information risk and compliance.

Issue Reporting & Management Capability to notify on issues and incidents and manage, document, resolve, and report on the range of complaints, issues, incidents, events, investigations, and cases.

Legal Management Capability to manage, monitor, and report on the organization’s legal operations, processes, matters, risks, and activities.

Physical Security Management Capability to manage risk and losses to individuals and physical assets, facilities, inventory, and other property..

Policy & Training Management Capability to mange the development, approval, distribution, communication, forms, maintenance, and records of policies, procedures and related awareness activities.

Quality Management Capability to manage, assess, record, benchmark, and track activity, issues, failures, recalls, and improvement related to product and service quality.

Risk Management Capability to identify, assess, measure, treat, manage, monitor, and report on risks to objectives, divisions, departments, processes, assets, and projects.

Strategy & Performance Management Capability to govern, define, and manage strategic, financial, and operational objectives and related performance and risk activities.

Third Party Management Capability to govern, manage, and monitor the array of 3rd party relationships in the enterprise, particularly risk and compliance challenges these relationships bring.

GRC Technology Market Segment Definitions



GRC Intelligence Segment Description

Audit Content & Intelligence Content providers of audit templates, forms, and intelligence.

Business Continuity Content & Intelligence Content providers of business continuity templates, forms, and intelligence

Compliance Content & Intelligence Content providers of regulatory libraries, regulatory intelligence, compliance forms and templates.

Environmental Content & Intelligence Content providers of environmental intelligence, forms, and templates.

Health & Safety Content & Intelligence Content providers of health & safety libraries, content, forms, and templates.

Internal Control Content & Intelligence Content providers of internal control libraries, forms, and templates.

IT GRC Content & Intelligence Content providers of IT GRC/security control libraries, threat and vulnerability intelligence, forms, and templates.

Legal Content & Intelligence Content providers of legal databases, libraries, legislation tracking, forms, templates, and spend intelligence.

Policy & Training Content & Intelligence Content providers of policy libraries, training courses, and policy and training related content, forms, and templates.

Risk Management Content & Intelligence Content providers of risk intelligence feeds, risk libraries, loss data, risk forms, and templates.

Third Party Management Content & Intelligence Content providers of third party management intelligence, due diligence, watch lists, negative news, ratings, monitoring, forms, and templates

Issue Specific Content & Intelligence Content providers of content and intelligence related to specific issues, regulations, and risks (e.g., bribery/corruption, conflict minerals, labor)

Industry Specific Content & Intelligence Content providers of industry specific content and intelligence.

GRC Intelligence Market Segment Definitions



GRC Professional Services Segment Description

Audit Services Services focused on external audits as well as internal audit staffing and management.

Consulting Services Services focused on GRC related management and strategy consulting.

Legal Services Services focused on legal matters and advice related to GRC.

Outsourced Services Services that are outsourced such as specific GRC functions, monitoring, certification, etc.

Systems Integration Services Services focused on implementation, build out, and development of GRC related information and technology architecture and solutions.

GRC Professional Services Market Segment Definitions



Platforms

SolutionsTools

GRC Technology Market: Types of Technology

Platforms provide a breadth of capabilities that span solution areas in a segment enabling them to be a platform to manage a GRC segment extensively.

Platforms

Solutions are technologies that are more focused in what they do. They tend to solve specific problems and come at a segment from a narrower perspective. They can compliment a platform or run independently from it.

Solutions

ToolsTools are technologies that assist or enable a segment, but do not fit adequately in any of the definitions for platforms or solutions. Every GRC segment has a Miscellaneous Tools category to catch all the related technologies that assist and add value, but do not have enough market presence in a segment to get their own solution or platform identification.



Central Hub of GRC Information

PROVIDE

COMMUNICATIONEffective communication greases the wheels of any initiative by ensuring that everyone knows what’s happening, why, and where they fit.

CCO

The RIGHT PEOPLE withthe RIGHT ACCESS to

the RIGHT INFO at the RIGHT TIME

INTERNALAUDIT

EXTERNALEXPERTS

GOVERNMENT

CCO

HOTLINE / HELPLINEAre there any red flags?

Are things going according to plan?

What’s changed?

What’s on the horizon?

What do we need to focus on?

I can help you assess the program. We can

help too!

What do I need to do?

Why change something that’s working?

How does it impact me?

Wheredo I fit? What if I have

(or see) a problem?



Technology Provides Automation and Tracking

?

COLLABORATION

AUDIT TRAIL

NFORCE munication, policies aren’t always fol-

NUMBER OF FAILURES:3 POLICY VIO-

LATIONS:0EXCEPTIONS AND DEVIA-

TIONS

I haven’t seen any violations.

This needs to be done differently.

ENFORCEMENT

MANAGEMENT REPORTING

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Integration Visibility Global Reach Availability

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Accountability

Automation

Repository

Consistency



Defensible GRC

1 32

76

4

5 8

VERSION (DATE/TIME)

!

ASK & RESOLVE QUESTIONS

MANAGE EXCEPTIONS

UNDERSTAND CONTEXT PROVIDE AUDITABLE RECORDS

DEMONSTRATE SEQUENCE

MEET REQUIREMENTS

REPEATABLE CYCLE

SYSTEM OF RECORD



360° Contextual Analytics & Intelligence Capabilities

Integrated and mapped together to provide context

Analyzed to understand relationships

Action Items

Distributed & DisconnectedData PointsDO NOT DISTRIBUTE, SUBSCRIBER PERSONAL USE ONLY


Preference of SaaS or Traditional Software for GRC

49

S31% Prefer SaaS

39% Do Not Prefer

3% Unsure21% Neutral

9% Don’t Know

Do you prefer SaaS GRC (hosted externally) or traditional software (internally hosted)?

All Responses

45% Prefer SaaS

27% Do Not Prefer


6% Don’t Know

Those Leading GRC Strategy




Preference of SaaS or Traditional Software for GRC, by Size

50

Do you prefer SaaS GRC (hosted externally) or traditional software (internally hosted)?

S37% Prefer SaaS

32% Do Not Prefer


7% Don’t Know

Small Organizations

25% Prefer SaaS

13% Do Not Prefer


9% Don’t Know

Large Organizations

32% Prefer SaaS

23% Do Not Prefer


9% Don’t Know

Medium Organizations




On-Premise (Traditional) Cloud Hosted Solution Cloud SaaS Multi-Tenet

Overview Installed in local data center in a client-server model,most solutions support web-browser interfaces, but some still require a thick client (application installed on user computers).

Implementation of a traditional on-premise implementation in a 3rd party data center and adds a layer of online delivery

Cloud delivering with a single code-base (multi-tenant).

Deployment Installed on your own hardware in your own data center. Each instance of the application requires its own hardware, software, and network connectivity.

Installed on a 3rd party’s hardware in a 3rd party’s data center, delivered over Internet. Each instance of the application requires its hardware, software, and network connectivity (may be virtual).

Single code base supports all a solution provider’s clients in a common data center, delivered over Internet.

Implementation 6 months or more 3 to 6 months 2 to 12 weeks

Customization Often expensive and time-consuming. High risk of issues with upgrades due to customization.

Same as On-Premise Tends to be highly configurable and avoids customization, low-risk of issues on upgrades.

Upgrades Once a year or more Same as On-Premise Typically quarterly, so new features are rolled out regularly.

IT Support Provided by customer Mixture of customer and 3rd party hosting provider Included in subscription and provided by solution provider

Technology Requirements Requires IT to support a specific operating environment for the server application and database.

Same as on-premise. Delivered by web browser over the Internet and tends to be operating system and browser agnostic.

Accountability Solution provider is responsible for providing software updates and patches, IT is responsible for maintaining software and hardware.

Solution provider is responsible for software updates and patches as well as maintenance of software and hardware.

Solution provider is responsible for software updates and patches as well as maintenance of software and hardware.

Deployment Models



Basic, Common & Advanced Solutions

Techology Capabilitieslow high

high

low

Value

to O

rgan

izatio

nAdvanced§ Solutions that go beyond

common features and distinguish themselves with a varying array of advanced capabilities.

Common§ Solutions with features that are

commonly found in the market across primary competitors in the segment.

Basic§ Solutions that have the basic

elements needed, but are not as feature rich as solutions that have a lot of market traction.

high

low

Cost

to Im

plem

ent


53© GRC 20/20 Research, LLC • ww.GRC2020.comGRC Engagement: Bringing GRC to the Front Lines of the Organization



GRC Collaboration: Providing Collaboration on GRC Across the Organization



GRC Operationalization: Integrating GRC Across Systems & Processes



GRC Intelligence: Integration of Actionable Content





DEMOGRAPHICS: Countries Responding (by company headquarters)

71%

3%

16%

6%

2%

1%

1%

Overall Market by Geography



GRC Intelligence Market

GRC Technology

Market

GRC Intelligence & Technology Market Overlap



GRC Technology Market: Enterprise GRC Platforms & Architecture

Enterprise GRC Platform & Architecture


GRC Data Integration Solutions

GRC Analytics & Reporting Solutions

Enterprise GRC Platforms & Architecture technologiesdeliver a range of cross-department functionality across GRC functional areas into an integrated technology ecosystem. For some this is single GRC platform for the entire organization. For others it is an integrated architecture in which there can be a core platform but often extends and integrates into a range of other solutions and data sources.

To be an Enterprise GRC Platform requires a single platform architecture that has multi-department (e.g., enterprise wide) use across the following areas, at a minimum:

– Enterprise/Operational Risk Management, – Compliance Management– Internal Control Management– Issue Management (e.g., incident, case, investigations) – NOTE: most Enterprise GRC Platforms offer a range of

additional module beyond these.

Organization & Process Modeling Solutions

Miscellaneous GRC Platform & Architecture Tools



Four Critical Capabilities Areas that Define an Enterprise GRC Platform

Risk Management

Internal ControlManagement


ComplianceManagement

Enterprise

GRCDO NOT DISTRIBUTE, SUBSCRIBER PERSONAL USE ONLY


AuditManagement

Business Continuity

Management


Health & Safety Management

?IT

GRC

InternalControl

Management

IssueManagement

AutomatedControls

Policy Management

Quality Management

RiskManagement

Third Party Management

What Are the Critical Components of Your GRC Platform?

EnvironmentalManagement

LegalManagement

Physical Security

Management

Strategy & PerformanceManagement

???

????

100%of Enterprise GRC RFPs

1 to 49%of Enterprise GRC RFPs

50 to 99%of Enterprise GRC RFPs



2016 GRC Technology Market Size: How Big is Big?

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BBrrooaaddeerr MMaarrkkeett SSiizzee –– GGRRCC CCoonntteenntt && TTeecchhnnoollooggyyWhen considering a broader view of the GRC EcoSystem includingHealth & Safety, Matter Management, Environmental, IT GRC, and moreNNOOTTEE:: does not include all of IT Secuirty of Physical Security Market

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Note, this is the market for enterprise GRC platforms, many vendors providing these platforms are also selling to specific areas

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Enterprise GRC Platform Spending

64

Do you plan to spend more/same/less on GRC solutions in the following categories over the next 3 years?

S61% Spending More

7% Spending Less

3% Unsure32% Same

Don’t Knows Filtered Out

Across All Organizations


Small Organizations§ 53% Spending More

§ 44% Same

§ 3% spending Less

Medium Organizations§ 71% Spending More

§ 27% Same

§ 2% spending Less

Large Organizations§ 56% Spending More

§ 28% Same

§ 16% spending Less

53%

71%

56%



GRC Technology Market: Audit Management & Analytic

Audit Management & Analytic

Audit Management Platforms

Audit Analytic Solutions

Miscellaneous Audit Tools

Audit Management & Analytic technologies are used by auditors to manage and perform audits.

– Audit management solutions are used to manage audit cycles – this includes audit planning, resource scheduling/calendaring, work paper management, audit execution, audit process management, and audit reporting. They also support a risk-based approach to audit planning to prioritize audits based on the risk to the business.

– Audit analytic solutions utilize data analytics and and continuous auditing (automated control enforcement & monitoring) to extract insights from operational and financial data to assist in audits and provide assurance.



Audit Management & Analytics Spending

66


S46% Spending More

6% Spending Less

3% Unsure48% Same





§ 57% Same

§ 4% spending Less


§ 44% Same

§ 4% spending Less


§ 48% Same

§ 7% spending Less

39%

52%

45%



GRC Technology Market: Automated Control Enforcement & MonitoringAutomated Control Enforcement & Monitoring

Transactions Control Solutions

Fraud & Corruption Control Solutions

Automated Control Enforcement & Monitoring technologies provide to automatically and continuously monitor, enforce, test, assess, and report on controls within the organization. This category of software is also often referred to as Continuous Control Monitoring (CCM) or Automated Controls. This includes the capability to test, on a continuing or periodic basis, data and activity against defined rules to identify and report potential errors, the failure of controls, or inappropriate actions – including tests of business transactions, network activity, intrusion attempts, the sharing of confidential information or intellectual property, systems access, etc. Also included in this area is the ability to do GRC data analytics, monitoring, and mining.

Configuration Control Solutions

Segregation of Duty Control Solutions

Master Data Control Solutions

Identity & Access Control Solutions

Process Control Solutions

End User Computing Control Solutions

Social Media Monitoring Solutions

Miscellaneous Automated Control ToolsDO NOT DISTRIBUTE, SUBSCRIBER PERSONAL USE ONLY


Automated Control Monitoring & Enforcement Spending

68


S48% Spending More

6% Spending Less

3% Unsure46% Same





§ 57% Same

§ 4% spending Less


§ 53% Same

§ 3% spending Less


§ 33% Same

§ 9% spending Less

39%

44%

58%



GRC Technology Market: Business Continuity Management


Continuity Planning & Management Platforms

Crisis Response Solutions

Disaster Recovery Solutions

Business Continuity technologies model, record and direct the responsibilities, plans, actions and execution of continuity and disaster plans, testing of operating procedures, alternatives, information back-ups, data recovery and restoration processes during expected and unexpected disruptions to all areas of operation.

Miscellaneous Business Continuity Tools



Business Continuity Management Spending

70


S45% Spending More

7% Spending Less

3% Unsure48% Same





§ 52% Same

§ 6% spending Less


§ 56% Same

§ 3% spending Less


§ 35% Same


42%

41%

53%



GRC Technology Market: Compliance Management


Compliance Management Platforms

Compliance Assessment Solutions

Stakeholder & Regulatory Interaction Solutions

Compliance Management technologies support the overall coordination of legal, regulatory, contractual, values, ethics, and corporate obligations and responsibilities with associated compliance documentation, assessments, tasks, and records. This includes the ability to monitor, document, and manage changes to the regulatory environment and other obligations; to document all obligations of the organization; to perform compliance assessments against obligations; manage regulator and stakeholder interactions on compliance; and report on the state of compliance to regulators and stakeholders.

Compliance Forms, Reporting & Filing Solutions

Social Responsibility & Reporting Solutions

Regulatory Change Management Solutions

Miscellaneous Compliance Tools




Compliance Management solutions provide the capability to manage an overall compliance program, document and manage change to obligations, assess compliance, remediate non-compliance, and report. This enables organizations to manage:§ Compliance management process of projects, staff,

resources, projects/assessments, compliance risk, reporting, as well as related compliance forms & workflow.

§ Obligation management to document compliance obligations (e.g., regulations, contracts, values) and manage change to obligations and their impact on the organization.

§ Assess, document, and report on compliance through compliance assessments and reporting.

§ Provide a defensible record of compliance of who did what, when, how, and why at any given point in time.

§ Integrate with policy and issue management as these are core areas of a compliance program.

Solution Area Definition

q Manage overall compliance management program planning, staff, projects/assessments, and activities

q Maintain a register of all compliance obligations that is mapped to policies, risks, controls, subject matter experts.

q Manage change to obligations as regulations, enforcement actions, standards, and related sources change.

q Provide for assessments and evidence of complianceq Model and manage compliance riskq Have a defensible audit trail of compliance to demonstrate a

effective compliance programq Compliance attestations and regulatory reportingq Document regulatory and stakeholder interactionsq Manage and process compliance related formsq Provide regulatory intelligence feedsq Remediate issues of non-complianceq Manage compliance exceptions and exemptions

Critical Capabilities



Compliance Management Spending

73


S56% Spending More

7% Spending Less

3% Unsure36% Same





§ 41% Same

§ 5% spending Less


§ 44% Same

§ 5% spending Less


§ 25% Same


54%

51%

64%



Market Maturity: Compliance & Ethics Management

Innovators Early Adopters Majority Late Majority Reinvent/Laggard

Small Expanding High Peaked Renew/Decline

Very High High High Medium Rising/Low

Low Expanding High Flattening Strong/Moderate

Low Increasing Moderate High Varies

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$4000MM

$2000MM

$535MM

Theoretical Addressable MarketTotal addressable market size if every

organization purchased a solution.

2016 Estimated Market SizeCalculation of known and estimated revenues in current year with trajectory projected to end of year.

$435MMCalculation of known and estimated revenues of solutions in this market segment for 2015

2015 Market SizePoint where market slows to below

10% annual growth.

Saturated Market Size

Market Size & Growth: Compliance & Ethics Management

NOTES:§ Compliance & Ethics Management is a concern across industries, and has a good size

market projection as a result.§ The Copmliance & Ethics Management market is just starting to move beyond

spreadsheets, documents, and emails and is in a strong growth phase for technology22001144 22001155 22001166 22001177 22001188

Size $365MM $435MM $535MM $658MM $809MMCAGR 19% 23% 23% 23%



Miscellaneous Environmental Tools

GRC Technology Market: Environmental Management

Environmental Management

Environmental Management Platforms

Air, Water, Waste Management Solutions

Energy & Carbon Management Solutions

Environmental Management technologies help monitor, analyze, record, and report organizational activity focused on compliance with environmental laws and regulations, related corporate policy related to managing environmental controls and conditions, and assessing the environmental impact of the corporation’s operations, strategies, and plans.

Land Use & Permit Solutions

Sustainability & Environmental Reporting Solutions

Chemical Management Solutions



Environmental Management Spending

77


S31% Spending More

7% Spending Less

3% Unsure62% Same





§ 73% Same

§ 4% spending Less


§ 67% Same

§ 3% spending Less


§ 43% Same


23%

30%

43%



GRC Technology Market: Health & Safety

Health & Safety Management

Health & Safety Management Platforms

Health & Safety Forms & Document Solutions

Occupational Safety Solutions

Health & Safety technologies manage the regulatory and policy-based guidelines and processes for protecting and reporting on the workforce, workplace, resources-under-management and external environment impacted by an organization’s activities.

Health & Safety Incident Solutions

Hazard Analysis Solutions

Chemical Management & Labeling Solutions

Miscellaneous Health & Safety Tools



Health & Safety Management Spending

79


S37% Spending More

12% Spending Less

3% Unsure51% Same





§ 50% Same



§ 57% Same



§ 45% Same


33%

32%

45%



EH&S Management

EH&S technologies manage the regulatory and policy-based guidelines and processes for protecting and reporting on the workforce, workplace, resources-under-management and external environment impact of an organization’s activities. This enables organizations to manage:§ EH&S management process of projects, staff, resources,

projects/assessments, compliance risk, reporting, as well as related compliance forms & workflow.

§ Obligation management to document EH&S compliance obligations (e.g., regulations, contracts, values) and manage change to obligations and their impact on the organization.

§ Assess, document, and report on EH&S through compliance and reporting.

§ Provide a defensible record of EH&S compliance of who did what, when, how, and why at any given point in time.

§ Document issues and managing issues through to resolution.


q Manage overall EH&S management program planning, staff, projects/assessments, and activities

q Maintain a register of all EH&S compliance obligations that is mapped to policies, risks, controls, subject matter experts.

q Manage change to obligations as regulations, enforcement actions, standards, and related sources change.

q Provide for assessments and evidence of EH&S complianceq Model and manage EH&S riskq Have a defensible audit trail of EH&S compliance to

demonstrate an effective programq Track EH&S compliance attestations and regulatory

reportingq Document regulatory and stakeholder interactionsq Manage and process EH&S related formsq Provide regulatory intelligence feedsq Report & remediate issues of EH&Sq Manage exceptions and exemptions




Market Maturity: Environmental, Health & Safety Management






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$3,350MM

$1,500MM

$861MM






10% annual growth.


Market Size & Growth: Environmental, Health & Safety Management

NOTES:§ EH&S is a more established segment than others§ EH&S is not as much of a concern in every industry so it lowers total addressable

market size when compared to Compliance & Ethics Management§ Verdantix reports a 2016 market size of $932MM, the difference in GRC 20/20’s sizing

is that Verdantix allocates all software revenues of players in EH&S to EH&S while GRC 20/20 splits these revenues in some other segments

§ There will be market share consolidation as this market continues M&A activity as we have seen for the past several years

22001144 22001155 22001166 22001177 22001188

Size $686MM $768MM $861MM $964MM $1,079MMCAGR 12% 12% 12% 12%



GRC Technology Market: Internal Control Management

Internal Control Management

Internal Control Management Platforms

Financial Close & Reporting Solutions

Miscellaneous Internal Control Tools

Internal Control Management technologies provide the ability to define, document, map, monitor, test, assess, and report on controls within the organization, including process and systems documentation. These solutions document internal controls, provide control assessments/self-assessments, and manage this through workflow, tasks, and reporting. Internal Control Reporting Solutions



Internal Control Management Spending

84


S45% Spending More

6% Spending Less

3% Unsure49% Same





§ 53% Same

§ 7% spending Less


§ 51% Same

§ 5% spending Less


§ 41% Same

§ 8% spending Less

40%

44%

51%



Enterprise GRC Core: Internal Control Management

Internal Control Management solutions provide the capability to manage, define, document, map, monitor, test, assess, and report on internal controls of the organization. This enables organizations to manage:§ Internal control program of staff, projects, resources,

assessments, and reporting§ Central register of internal controls in which controls are

mapped to risks and obligations so a single control can be implemented to address similar requirements.

§ Control assessments to query areas of the organization on control effectiveness and attestations

§ Automated controls established for continuous detective, and preventive controls.

§ Exceptions, exemptions and corrective controls so documentation is in place and does not get missed.

§ Remediation process related to weak or missing controls


q Central control register that can be mapped to objectives, risks, policies, issues, obligations, and organization hierarchy.

q Survey and assessment capability to query state of controls across organization and record attestations.

q Exception and exemption process to document control and manage process.

q Business process modeling and documentation to visually layout business processes with identified controls in process.

q Reporting on controls, including deficiencies and weaknesses

q Document control testing and findingsq Support or integrate with automated control solutionsq Remediation management to address control

issues




GRC Technology Market: IT GRC Management

IT GRC Management

IT GRC Platforms

Asset Discovery & Management Solutions

Vulnerability & Threat Management Solutions

IT GRC Management technologies are used to govern and direct information and technology (IT) strategies in the context of business. The governance function of IT is the alignment, strategy, and direction of IT to support the business. A core component of IT GRC Solutions is the ability to manage and monitor security, risk, and compliance across IT systems throughout the organization and across significant business relationships.

IT Project, Change & Service Delivery Solutions

IT Incident & Event Management Solutions

Security Event & Information Mgmt Solutions

IT Security Solutions

Miscellaneous IT GRC Tools



IT GRC Management Spending

87


S56% Spending More

5% Spending Less

3% Unsure39% Same





§ 43% Same

§ 7% spending Less


§ 38% Same

§ 5% spending Less


§ 36% Same

§ 5% spending Less

50%

57%

59%



GRC Technology Market: Issue Reporting & Management


Incident/Investigations Management Platforms

Hotline & Issue Intake Solutions

Complaint Management Solutions

Issue Reporting & Management technologies provide issue intake and investigations management. Issue reporting solutions (e.g. hotline, whistleblower) provide a confidential, independent resource for individuals to report observations related to issues as well as potential acts of fraud, theft, inappropriate or illegal behavior, negligence or other impropriety. Investigations management solutions are used to manage investigations, issues, incidents, events, or cases: they specifically provide consistent documentation and processes for the management of events — from reporting, to managing and documenting the investigation, to recording the loss and business impact.

Corrective Action/Preventive Action Solutions

Forensics & Evidence Collection Solutions

Impact & Loss Analysis Solutions

Miscellaneous Issue Reporting & Mgmt Tools



Enterprise GRC Core: Issue Reporting & Management

Issue Reporting & Management solutions provide the capability to notify on issues and incidents and manage, document, resolve, and report on the range of complaints, issues, incidents, events, investigations, and cases. These solutions enable companies to manage:§ Issue management and resolution processes across the

organization (e.g., legal, compliance, HR, security, health & safety, quality) from the intake through the investigation and resolution.

§ Issue intake and consolidation through hotlines, management reporting, surveys, and other notification pathways.

§ Issue history to collect incidents over time and the details and analysis of business impact to feed into risk models.

§ Investigation management to manage the lifecycle and process of incidents, investigations, and processes.

§ Incident analysis for root cause and CAPA.

Solution Area Definitionq Map issues to risks, policies, objectives, obligations, and

controls to show relationships and impact of issuesq Provide issue intake (anonymous and non-anonymous) as well

as a portal to collect issues reported to managementq Structured and legally defensible investigation process and

documentationq Issue escalation when investigation grows beyond what

originally thoughtq Manage investigative resources, skills, and utilizationq Collect a detailed history of issues, particularly frequency and

impactq Conduct remediation and CAPA in context of issues and

findingsq Loss analytics and root cause analysisq Variety of templates and interfaces for managing

different types of issues




Issue Reporting & Management Spending

90


S47% Spending More

6% Spending Less

3% Unsure47% Same





§ 45% Same

§ 7% spending Less


§ 49% Same

§ 6% spending Less


§ 45% Same

§ 7% spending Less

48%

44%

48%



Market Maturity: Issue Reporting & Management






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$20,000MM

$2,000MM

$342MM






10% annual growth.


Market Size & Growth: Issue Reporting & Management

NOTES:

22001144 22001155 22001166 22001177 22001188




GRC Technology Market: Legal Management

Legal Management

Legal Management Platforms

Legal Spend Management Solutions

Legal Management technologies administer the collection of facts related to events and legal cases under investigation, for use in verifying their circumstances, in order to provide valid information for testing by independent parties with the confidence that the information provided is related to these events. Discovery tools assist in managing and communicating discovery holds and uncovering, segmenting, organizing and storing electronic forms of evidence that can be used in an investigation, both before and after the occurrence of the related events, including tools that separate potential discovery documents from their original locations and repositories. This category of technology also includes systems for retention management that integrate with content/document systems to manage the storage, disposition, and retention of information.

Matter Management Solutions

Discovery / eDiscovery Solutions

Claims Defense & Legal Discovery Solutions

Contract Management Solutions

Board & Entity Management Solutions

Intellectual Property Management Solutions

Legal Research & Analytic Solutions

Miscellaneous Legal Management ToolsDO NOT DISTRIBUTE, SUBSCRIBER PERSONAL USE ONLY


Legal Management Spending

94


S31% Spending More

7% Spending Less

3% Unsure62% Same





§ 76% Same

§ 8% spending Less


§ 67% Same

§ 3% spending Less


§ 39% Same


16%

30%

48%



GRC Technology Market: Physical Security Management

Physical Security Management

Physical Security Management Platforms

Physical Asset Management Solutions

Physical Loss Management Solutions

Physical Security Management technologies enhance physical asset and individual protection, and the authorization and monitoring of access to an organization’s facilities and property. This category of technology also includes systems to manage physical loss and theft.

Surveillance & Monitoring Solutions

Miscellaneous Physical Security Tools



Physical Security Management Spending

96


S34% Spending More

8% Spending Less

3% Unsure58% Same





§ 68% Same

§ 7% spending Less


§ 58% Same

§ 3% spending Less


§ 45% Same


25%

39%

40%



GRC Technology Market: Policy & Training Management


Policy & Training Management Platforms

Policy Management Solutions

Policy Forms & Disclosure Solutions

Policy & Training Management technologies mange the development, approval, distribution, communication, forms, maintenance, and records of organization policies, standards, procedures, guidelines and related training and communication awareness activities. This includes solutions used to train individuals on policy and risk areas to employees and extended business relationships. Elements of gamification, eLearning, learning management, document/content management are part of this segment from a GRC perspective. Forms and disclosure management solutions (e.g., conflict of interest, gifts & entertainment/hospitality) are included in this segment as they relate and support organization policies.

Training Management Solutions

Training & Gamification Solutions

Miscellaneous Policy & Training Mgmt Tools



Policy Management: Critical Capabilities

Policy management solutions provide the capability to mange the development, approval, distribution, communication, forms, maintenance, and records of policies, procedures and related awareness activities. This enables organizations to manage:§ Policy management process of development, approval,

communication, monitoring, and maintenance. This includes workflow, task management, and content management capabilities with version control

§ Policy portal for individuals to be able to access policies relevant to their role and responsibilities, access related resources and forms, and complete tasks related to policies and training.

§ Policy evidence to provide a system of record and audit trail of all interactions, development, approvals, communications, training, exception, exemptions related to policies.


q Manage policy lifecycle from development through maintenance and policy retirement

q Workflow, task management, and content managementq Integration w/ HR systems & business systems to identify

change where policies/training need to be communicatedq Policy portal for individuals to access policies, training,

forms, and related tasksq Forms development and management for forms related to

policiesq Editing capabilities and version control of policy contentq Ability to map policies to other GRC content and recordsq Regulatory change management to keep policies currentq Exception/exemption management of policiesq Integration of training and LMS capabilitiesq Audit trail of evidence of all policy interactionsq Mobility capabilities




Policy & Training Management Spending

99


S49% Spending More

6% Spending Less

3% Unsure45% Same





§ 45% Same



§ 49% Same

§ 2% spending Less


§ 39% Same

§ 9% spending Less

45%

49%

52%



Market Maturity: Policy & Training Management






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$20,000MM

$2,000MM

$390MM






10% annual growth.


Market Size & Growth: Policy & Training Management

NOTES:

22001144 22001155 22001166 22001177 22001188




GRC Technology Market: Quality Management

Quality Management

Quality Management Platforms

Non-Conformance & Variance Solutions

Product Regulation & Labeling Solutions

Quality Management technologies record, benchmark, track and manage activity related to product and service quality assessments and certifications, production failures, product recalls, design and delivery improvements and their related regulatory guidelines.

Equipment Management Solutions

Corrective Action/Preventive Action Solutions

Miscellaneous Quality Management Tools



Quality Management Spending

103


S44% Spending More

4% Spending Less

3% Unsure52% Same





§ 50% Same

§ 6% spending Less


§ 66% Same

§ 3% spending Less


§ 38% Same

§ 4% spending Less

44%

31%

58%



Market Maturity: Quality Management






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$3,100MM

$1,300MM

$982MM






10% annual growth.


Market Size & Growth: Quality Management

NOTES:§ Quality Management is a more established segment than others§ Quality Management is not as much of a concern in every industry so it lowers total

addressable market size when compared to Compliance & Ethics Management§ There will be market share consolidation as this market continues M&A activity as we

have seen for the past several years§ The regulatory impact driving greater adoption is not as strong as in other areas such

as corporate compliance, EH&S, policy management, and third party management

22001144 22001155 22001166 22001177 22001188

Size $812MM $885MM $982MM $1,090MM $1,210MMCAGR 11% 11% 11% 10%



GRC Technology Market: Risk Management

Risk Management

Enterprise & Operational Risk Mgmt Platforms

Finance & Treasury Risk Management Solutions

Risk Management technologies support the identification, assessment, evaluation and response, and monitoring of risks and opportunities of risk across the organization. This includes the ability to monitor changes in the external and internal contexts to alert an organization to changing risk conditions (e.g., geo-political, economic, competitor, technology, and natural disaster) that can impact business. These systems help identify specific causes and execute historical review, simulation, interpretation and projection of impacts on an organization’s operations or assets given the potential consequences of events and the likelihood of events occurring sequentially or simultaneously. This category includes enterprise risk management systems, operational risk management systems, as well as specialized risk applications. Finance/Treasury Risk Management - involves an array of applications and systems used to identify and manage the risk factors, causes and response procedures in an organization’s financial and treasury management. These include risk technology focused on specific areas such as liquidity, credit, market, and commodity risk management that help identify risk and execute historical review, simulation, interpretation and projection of impacts on an organization’s financial assets given the potential consequences of events and the likelihood of events occurring sequentially or simultaneously.

Risk Assessment Solutions

Insurance Risk & Claims Management Solutions

Risk Analytics & Modeling Solutions

Model Risk Management Solutions

Project Risk Management Solutions

Loss Collection & Analytic Solutions

Miscellaneous Risk Management Tools



Enterprise GRC Core: Risk Management

Risk Management solutions provide the capability to identify, assess, measure, treat, manage, monitor, and report on risks to objectives, divisions, departments, processes, assets, and projects. This enables organizations to manage:§ Risk management process of risk identification,

assessment, quantification, treatment and monitoring activities in context of objectives, including the overall management of the continual, cyclic, as well as dynamic processes of risk assessment, analysis, decision making, and response (e.g., acceptance, mitigation, transfer, avoidance).

§ Risk monitoring on changes in external and internal contexts to alert the organization to conditions that can impact objectives.

§ Risk evaluation to identify specific causes and evaluate historical review, simulation, interpretation and projection of impacts on an objectives and assets.

Solution Area Definitionq Manage overall risk management program planning,

staff, projects/assessments, and activitiesq Support for multiple risk management frameworks,

methodologies, and analysis techniquesq Set and map objectives and context (e.g., internal,

external) of riskq Enable the organization to identify, categorize, map, and

show risk relationships in registersq Enable the organization to gather information and

assessment of risks in a variety of approachesq Analyze risk from different perspectives and implement

risk treatmentq Provide monitoring and reporting on risk, including risk

normalization and aggregation enterprise reportingq Ability to analyze scenarios and evaluate risk losses

and events, and revise risk models as necessaryq Dashboarding and metrics (e.g., KRIs) on risk




Risk Management & Analytics Spending

108


S63% Spending More

6% Spending Less

3% Unsure31% Same





§ 32% Same

§ 6% spending Less


§ 30% Same

§ 2% spending Less


§ 33% Same

§ 9% spending Less

62%

68%

58%



GRC Technology Market: Strategy, Performance & Process Management

Strategy, Performance & Process Mgmt

Strategy, Performance & Process Platforms

Enterprise Architect & Process Modeling Solutions

Strategy, Performance & Process Management technologies include solutions for identifying and managing corporate strategies, goals, and objectives and cascading them through the organization; optimizing operational and financial performance against those objectives; and providing valuable information for decision-making and reporting purposes.

Performance & Objective Management Solutions

Enterprise Asset Management Solutions

Enterprise Change Management Solutions

Enterprise Intelligence & Analytic Solutions

Miscellaneous Strategy & Process Mgmt Tools



Strategy & Performance Management Spending

110


S47% Spending More

9% Spending Less

3% Unsure44% Same





§ 33% Same



§ 42% Same

§ 7% spending Less


§ 58% Same


56%

51%

29%



GRC Technology Market: Third Party Management

Third Party Management

Third Party Management Platforms

Procurement & ERP Third Party Solutions

Third Party Management technologies provide organizations the ability to govern third party relationships (e.g., vendor, supplier, contractor, consultant, service provider, outsourcers, agent) and the lifecycle of onboarding, contracts, due diligence screening, performance monitoring, risk management, compliance management, quality and service level management, and off-boarding. The third party GRC specific solutions record, and maintain the communication, attestation, and assessment of policies, contractual compliance, risk and compliance assessments, and audits across extended business relationships. Third party screening solutions are used to vet third parties and validate them against databases such as politically exposed persons, watch lists, social accountability, and more.

Third Party Risk Management Solutions

Screening & Due Diligence Solutions

Miscellaneous Third Party Management Tools



3rd Party Management: Critical Capabilities

3rd Party Management solutions provide capabilities to govern, manage, and monitor the array of 3rd party relationships in the enterprise, particularly risk and compliance challenges these relationships bring.This enables organizations to manage:§ 3rd party management process of onboarding,

approval, due diligence, communications, assessment, evaluation, issue management, and off-boarding. This includes workflow, task management, and content management capabilities.

§ 3rd party portal for 3rd parties to be able to submit and share information, take assessments, provide attestations, and other related requests and forms, to complete tasks.

§ Provide evidence to provide a system of record and audit trail of all interactions, assessments, audits/inspections, and interactions with 3rd parties.

Solution Area Definitionq Onboarding process to register suppliers and have

them submit necessary documentationq Due diligence process during onboarding and

periodically or continually thereafterq Risk assessment and analysis of 3rd party relationshipsq Policy communication & attestation to 3rd partiesq Training & awareness of 3rd paritiesq Compliance assessment and analysis of 3rd party

relationshipsq Issue management through issue

reporting/identification, response/investigation, and resolution.

q Forms & disclosure management for 3rd parties to fill out forms and submit information

q Audit & inspection management of 3rd parties in context of right to audit clauses

q Management of the off-boarding process




Third Party Management Spending

113


S41% Spending More

11% Spending Less

3% Unsure48% Same





§ 41% Same



§ 63% Same

§ 6% spending Less


§ 36% Same


44%

31%

50%



Market Maturity: Third Party Management






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$20,000MM

$2,000MM

$406MM






10% annual growth.


Market Size & Growth: Third Party Management

NOTES:

22001144 22001155 22001166 22001177 22001188




Organization Profileq Company Profileq Financial Profileq Vision & Solution Plansq Geographic Reachq Industry Footprintq Client References & Case Studiesq Brand, Reputation & Track Recordq Customer Serviceq Training & Educationq Consulting & Implementation Servicesq Channels, alliances, partnershipsq Demonstrated Value, Financial Benefits, & ROIq Service Level Agreementsq Evaluation Instance & Proof of Value Supportq Post-Sales Support

Solution Architectureq Development Platform & Technology Architectureq Information Architecture q Flexibility of Technology & Information Architecture q Product Life Cycle & Updatesq Security Architecture - enterprise, entity, record, fieldq Single Sign-On & LDAPq Deployment Model – On-Premise, Hosted, SaaSq Scalability of Solutionq Integration with Other Systems & Dataq Responsive Interface & Mobility Architectureq Data Management & Bulk Changesq Configuration & Customizationq Availability of Toolkits, flexibility of architectureq Administrationq Internationalization & Contextualizationq Documentation

Considerations to Evaluate

NOTE: these are just a selection of some common elements from GRC 20/20’s RFP template for grcManagement Platforms



Foundational Capabilitiesq Workflow & Task Managementq Process Modelingq Content & Document Managementq Cross-Referencing & Relationships of Dataq Survey & Assessment Managementq Audit Trail & Records Managementq Reporting, Dashboards & Business Intelligenceq Notifications & Alertsq Mobility Appsq Visualization & Analyticsq Standard & Framework Supportq Collaborationq Business Rules Engine

Other Topics of Considerationq Out of the Box Features &Functionalityq Breadth of Functionalityq Depth of Functionalityq Advanced Features & Differentiatorsq Usability & User Experienceq Integrated Content & Intelligenceq Embedded Domain/Industry Expertiseq R&D & Innovationq Wizards & Contextual Helpq Role-based Experiences Devoid of Clutter

Considerations to Evaluate

NOTE: these are just a selection of some common elements from GRC 20/20’s RFP template for GRC Management Platforms



CostsWhat is the reality of the acquisition and maintenance costs?

1

ContentDoes the solution provide the right GRC content integrations?

2

Technology DebtHow much technology debt does the solution provider carry in promised features undelivered?

3

RFP ResponsesIs the solution provider saying yes to everything in the RFP to win a deal?

4

Client ReferencesAre the client references people actually using the solution every

day?

5

CustomizationCan you configure the solution

or does it require customization & coding?

6

Implementation TeamDoes the implementation team

have real world experience in aspects of GRC?

7

User ExperienceIs the user experience intuitive

and easy to use? Is mobility supported?

8

Concerns 3

4

5

6

28

7

1

Most Significant Concerns in Evaluating GRC Management Providers



Steps in Building an for an RFP

Current State Analysis

Define Management Charter & Structure

Define Information Architecture & Needs

Develop Value Proposition for Change

Establish Criteria for Management Technology

Evaluate & Rank Solutions

1 2 3 4 5 6



GRC 20/20 Value Perspective: 3 Angles of GRC Value

GRCValue

Agility

Efficiency

Effectiveness

ü Design Effectivenessü Operational Effectiveness

ü Agility to Changeü Responsiveness to Events

ü Financial Capital Savingsü Human Capital Savings



Mature GRC Capabilities Achieve the Following 10 Objectives. . .

1 Achieve Business Objectives

2 Ensure Risk Aware Setting of Objectives and Strategic Planning

3 Enhance Organizational Culture

4 Increase Stakeholder Confidence

5 Prepare & Protect the Organization

6 Prevent, Detect, and Reduce Adversity and Weaknesses

7 Motiviate & Inspire Desired Conduct

8 Stay Ahead of the Game

9 Improve Responsiveness & Efficiency

10 Optimize Economic Return & Value



1. Aware

ü Have a finger on the pulse of business

ü Watch for change in internal & external environment

ü Turn data into information that can be, and is, analyzed

ü Share information in every relevant direction

2. Aligned

ü Support and inform business objectives

ü Continuously align objectives and operations to risk of the entity

ü Give strategic consideration to information from risk management enabling appropriate change

Maturing GRC Through 360° Contextual Intelligence Delivers . . .

3. Responsive

ü You can’t react to something you don’t sense

ü Gain greater awareness and understanding of information that drives decisions and actions

ü Improve transparency, but also quickly cut through the morass of data to what you need to know to make the right decisions

4. Agile

ü More than fast, nimble

ü Being fast isn’t helpful if you are headed in the wrong direction.

ü Risk management enables decisions and actions that are quick, coordinated and well thought out.

ü Agility allows an entity to use risk to its advantage, grasp strategic opportunities and be confident in its ability to stay on course.

5. Resilient

ü Be able to bounce back quickly from changes in context and threats with limited business impact

ü Have sufficient tolerances to allow for some missteps

ü Have confidence necessary to rapidly adapt and respond to opportunities

6. Lean

ü Build the muscle, trim the fat

ü Get rid of expense from unnecessary duplication, redundancy and misallocation of resources within the risk management

ü Lean the organization overall with enhanced capability and related decisions about application of resources



Two Things to Note . . .

§ Organizations evaluating or considering GRC solutions are free to ask GRC 20/20 on our understanding and comparison of solutions in the market to meet your GRC requirements.

§ Inquiries are single focused questions that can be answered in under 30 minutes.

§ Complimentary inquiry is only available to organizations evaluating or considering GRC solutions for their internal use.

Complimentary Inquiry

§ GRC 20/20 has an extensive library of RFP requirements across a range of GRC capability areas presented in this presentation.

§ GRC 20/20 can be engaged in RFP development and support projects to streamline your process, gain perspectives learned from other organizations, and to keep solution providers honest in their responses.

RFP Development & Support


Questions?Michael Rasmussen, J.D.The GRC Pundit & OCEG [email protected]+1.888.365.4560

Some of the content we have evaluated is OCEG content which GRC 20/20 has an established relationship to use. Please do not copy slides or graphics without permission. GRC 20/20 highly recommends you consider OCEG membership at www.OCEG.org.

GRC 20/20 NewsletterLinkedIn: GRC 20/20

Blog: GRC Pundit

Twitter: GRCPundit

LinkedIn: Michael Rasmussen


Documents

2016-10 2016 GRC Market Analysis, Segmentation & Trendsgrc2020.com/wp-content/uploads/2016/10/2016-10-2016-GRC... · 2016-10-19 · üGRC Advisor Enterprise Subscribers get access