Trends to Watch: Governance, Risk, and Compliance in 2024

Trends to Watch: Governance, Risk, and Compliance in 2024


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Now that we are already into 2024, it’s time to have a look at the significant transformations in Governance, Risk, and Compliance (GRC). With global end-user spending on risk management and cybersecurity projected to reach $215 billion, the dynamics of GRC programs are evolving rapidly. As a forward-thinking business, you would be interested to know about governance risk management and compliance trends and seek professional solutions from experts.

It’s time to explore the key trends that will shape the GRC landscape this year.

AI Revolutionizing GRC

2023 was a year marked by the mass adoption of generative AI. Now, the spotlight shifts to the integration of AI into GRC practices. In GRC, AI is set to play a crucial role in risk assessment planning, threat intelligence, fraud detection, and regulation monitoring. Besides, AI is likely to streamline control rationalization, facilitate ‘Dynamic Strategic Decision Making’, and automate testing with risk modelling at its core.

Connected GRC Strategy for Enhanced Visibility

Risks transcend traditional boundaries in an interconnected world. For organizations, it’s imperative to evolve from having isolated approaches to a connected strategy for GRC. However, just 20% of organizations currently have fully integrated functions. For effective risk management, the urgency of having a unified GRC platform encompassing audit, cyber, risk, compliance, and ESG functions is more critical.

Turning Risks to Rewards through Continuous Control Monitoring

Traditional control testing and monitoring fall short in the face of evolving organizational complexities. A study involving 500 risk leaders revealed that 70% consider access to optimized real-time alerts to mitigate the effect of serious risk events significantly. The evolving complexity of organizations renders traditional control testing and monitoring insufficient.

Operating in 2024, businesses need to prioritize real-time risk visibility and continuous control monitoring. This approach strategically monitors and tests security controls, detecting risks, issues, and potential threats automatically from diverse sources of data.

Proactive Compliance as a Business Imperative

The True Cost of Compliance report highlights an 18.8% surge in financial crime compliance expenses since 2020. Tackling such regulatory changes accompanied by compliance costs requires organizations to adopt a proactive stance. This involves leveraging AI on a centralized platform to automate recommendations and integrate enterprise systems with effective compliance and risk management systems to uniformly view compliance.

Cyber Risk Optimization for Resilient Enterprises

With the global cost of cybercrime expected to reach $9.5 trillion in 2024, organizations, especially in critical sectors, are bracing up for the battle. Integrating analytics, automation, continuous control monitoring, and AI into cyber risk management strategies can help. Businesses should vouch for initiatives like quantifying cyber risk exposure, and implementing continuous, and harmonizing controls.

Third-Party Risk Management Takes Center Stage

Amidst global threats, third-party risk management will gain prominence in 2024. For organizations, it’s imperative to have a unified source of truth to navigate multi-tiered risks. Continuous third-party risk identification and monitoring are crucial for a resilient third-party ecosystem. This requires better coordination across functions.

Better Resilience Can Define Risk Management

Better resilience and risk management defines the line of defense for companies in risk management. It’s imperative to establish tolerance levels and establish risk appetite to manage risks and rebound quickly in case of an incident. The business strategies of organizations largely revolve around this in 2024.
Gaining strategic advantage by quantifying non-financial risks
Non-financial risks, including misconduct and cybersecurity breaches, continue to be potential threats. Organizations need to calculate the expected value of risks in monetary terms to quantify the challenge. Businesses should use quantitative methods to get a strong network for risk modelling.
Integrated Platforms for Simplifying GRC
Modern cloud platforms go a long way in simplifying GRC with intuitive interfaces. This offers adequate scalability and elasticity. Such platforms are capable of unifying risk and compliance practices into a single source of truth. It fosters faster decision-making and enhances the trust of stakeholders. Low-code/no-code platforms empower GRC teams, offering agility, productivity, and innovation.
Empowering The Frontline in Risk Management

With the spotlight shifting to the frontline in risk management, it’s crucial to delegate more responsibilities to the frontline along with comprehensive training and tools. Advanced GRC technologies, including conversational interfaces and AI/ML, will streamline frontline engagement.

The IMC Group remains committed to empowering organizations with governance risk management and compliance solutions to explore the ever-evolving GRC landscape. With professional assistance on the side, businesses can secure their operations as they stride ahead.

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