Return on Investment (ROI) discussions are challenging regarding GRC solution implementations for two reasons. First, GRC focuses on improving an organization’s risk and compliance status, increasing security controls and finding the balance between accepting and rejecting risks. Second, GRC solution implementation and maturing an organization’s risk and security posture occurs over a course of years. Therefore, ROI calculations may not show immediate (within the first year) financial performance results. However, knowing and understanding corporate budgets and decision-making, ROI metrics become necessary to calculate and present to executives. Categories for ROI metrics are as follows:
- Decreasing time = Increasing Efficiency: Managers record the current time it takes employees to complete GRC tasks. For example, the time to manage the policy approval workflow, conduct business impact assessments or map policies to compliance regulations. Then managers project the future estimate of time to perform these same tasks after a GRC solution is implemented. Now, managers produce a time comparative analysis to provide evidence of increased efficiencies and in turn, discuss how employees will use their “extra time” to devote to supporting other company initiatives. SDS has seen such increased efficiency in organizations that have adopted some GRC solutions.
- Effective Vendor Management = Reduced Duplication of Vendors: Centralizing vendor relationships into a single managed GRC solution will enable the business to identify duplication of vendor relationships including contracts and manage vendor risk with a consistent methodology.
- Decreasing Risks = Cost Reductions: A GRC tool provides a database of risk information from all areas of the business and produces a comprehensive view of risk areas and impact. Organization strategies target the highest risks for remediation or address incidents effectively. This strategy results in less audit findings, reduced costs for security breaches and quicker remediation for risks because of the reduced number of risks.
- Decreasing Silos = Strategic Performance: As an organization shifts operating from the GRC “silo” perspective to the GRC “integrated” perspective, that organization is equipped to use the comprehensive GRC information for making informed choices across typically silos areas of business. Examples of informed choices – faster availability of information to hire or assess vendors, administer information security awareness training and support marketing campaigns advertising the security program for your organization.