Everything is fast-paced and complex in the business world, requiring organizations to ensure no stone is left unturned and nothing can fall between the cracks. No matter the size of the business, emphasis should always be placed on maintaining compliance, risk management, and governance. In this article, we will cover three GRC business objectives organisations should consider, with examples of prominent organizations and the significance of using SAP security in a modern corporate landscape.
Complying With Regulations
First and foremost on this list is the core of all businesses: compliance. Regulatory compliance goes hand in hand with SAP security. Corporate giants must navigate an ever-changing environment of laws, regulations, and industry standards.
Adopting a Governance, Risk and Compliance (GRC) business philosophy allows organizations to navigate the tricky landscape of regulations while practising ethically and strategically.
Non-compliance can result in legal action. Therefore, the GRC objective is for organizations to stay updated with the latest regulatory requirements during their day-to-day operations. Below, we mention some regulations well-known organizations must follow.
Financial Regulations
You don’t have to look far for examples of organizations that have to follow strict financial regulations. Being sustainably profitable means practising the industry standard of compliance.
JPMorgan, Citigroup, and Goldman Sachs adopt SAP security strategies to tick the correct boxes. Complying with these regulations helps maintain business transparency, accountability, and ethical financial practices — all of which improve public and market sentiment that helps the company.
Data Privacy and Security Upkeep
Data protection is more critical than ever in this day and age. With social media platforms and tech giants all asking for the consumers’ details, data privacy has become a staple.
Facebook, now known as Meta Platforms Inc., and Google have access to enormous amounts of user data. With that much at stake, there is a considerable emphasis on SAP security when managing personal data and IT environments to ensure no privacy regulations are breached.
These regulations fall under what is known as the General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA). These two acts stand in Europe and California, respectively, and any non-compliance can result in legal action, fines, and a dip in user trust. Third party SAP security tools that ‘plug into’ the SAP system are often used in this area as it enables businesses to safeguard their customers’ sensitive data with automation.
Risk Management
To avoid significant financial and reputational losses, a company must manage risks as it grows.
There are many factors involved that could risk the integrity of a company. From financial to strategic and operational risks, decisions and strategies are assessed by a solid GRC framework to avoid any demise.
Operational Risk Management
Amazon is the world’s largest e-commerce company. Being a successful company in a supply chain-driven industry requires regular check-ins to avoid operational threats such as cybersecurity trouble.
Having SAP security measures in place helps to protect vital information, while a GRC plan will aid in identifying any weaknesses as well as potential disruptions.
Reputational Risk Management
Big brands have big reputations to uphold. This risk management is vital for a company such as Tesla Inc. to maintain a positive consumer and business relationship.
Known for expressing his oft-divisive opinions, Elon Musk has regularly put his businesses’ reputations and investor relations on the line. The attention received can sometimes have a negative impact.
Ethical Governance
We live in a day and age when anything online can be quickly perceived in a negative light. Ensuring leaders and employees at a big organization comply with ethical rules and regulations is vital.
Ethical practices have become a standard requirement to avoid any issues regarding reputation and are essential in building a sustainable and trusted brand.
Employee Ethics
A company known for its willingness to hire, McDonald’s, has had to improve ethics training and awareness in the workplace. Their extensive training covers a range of programs designed to educate about cyber security and employee ethics.
With larger organizations, ethical behavior is expected and often rewarded. Businesses will offer their employees incentives as part of their strategy for maintaining ethical practices — this improves internal morale and customer trust and reduces the risk of bad publicity.
Do What’s Best for Your Business
The world of business is a vast and complicated one. The GRC plan aims to achieve long-term success by maintaining regulatory compliance, risk management, and ethical governance. By implementing having a robust SAP security strategy in place and implementing tools that enable the organization to manage their access risk, protect their data and be compliant ensure the correct legal boxes are not only ticked but will protect their reputation, maintain ethical standards, and protect against reputational and financial risks.
