Many Small Sustainable GRC Improvements Result In Big Gains

micro-GRC: Safeguarding against many small risks!

Governance Risk, and Compliance (GRC) implementations are necessary, but expensive. Therefore managers do not look very favorable upon GRC improvement projects. But did you ever calculated the gains of many small sustainable improvements? Many small, cheap, and fast improvements lead gradually to sustainable big gains, with little risk!

GRC deals with large risks: Business and compliance issues. And there it stops. Only in the case of new legislation or painfully identified business issues GRC improvements are realized. Nobody wants to spend loads of money with little chance on a reasonable Return On Investment (ROI).

This leaves a whole field blank, because there are a whole lot of small risks that occur often. Together they represent a very large amount of money. Think of an incoming invoice wrongfully paid, or an expense sheet, or the wrong advertisement displayed in a paid search campaign. Many small amounts aggregate to a large sum!

Some call this a micro-GRC implementation strategy.

Small GRC Improvements - Feasibility Phase

To start a project for small GRC improvements there are several good choices. You can go for the highest yield, the most willing officer, or the most annoying issue. It is important to make a start, and take it from there. No better time then the present!

Once you selected your subject important steps are:

  1. Select the parameter that best represents your problem.
    Example: This incoming invoice is OK.
  2. Gather all relevant your sources of digital available data.
  3. Clean the data and ‘wash’ it in your automatic Predictive Analysis (PA) processing street

The result is a quantitative measure of the expected results.

Small GRC Improvements - Implementation Phase

Once you have decided on what to take up, and its relevance is justified, it is time to identify all the relevant issues by inspecting the situation closely. In the Systems Thinking methodology this is called creating a visual process model, part of the Reference Scenario Phase. Discuss it with all involved groups. Once satisfied you can identify the root causes:

  • The decision process is not clear enough (who decides, and who advises on the matter).
  • Compliance or risk (business, technical, competition) is not covered in sufficient detail.
  • The process is more complex than the product or service calls for.

Decide on the easiest, smallest or cheapest fix for the issue related to the root cause. Rerun the improvement process: Collect data, wash it in PA street, and select the next root cause. The improvement process terminates the ROI gets too low, and you select a new subject for micro-GRC improvement.

Many small micro-GRC improvements make a large positive difference to your operations. Are you missing this solid Operational Excellence improvement opportunity, and leave the benefits to your competition?

I can find you a 2% decrease on costs, and simultaneously improving the product or service quality. Are you ready for this cultural shock?

Contact Hans Lodder, Chief Analytics Officer.

Spectacular success is always preceded by unspectacular preparation.


Back to top