How the Governance, Risk and Compliance Landscape is Continually Changing

1. How the Governance, Risk and Compliance Landscape is Continually Changing The evolving technology is changing the way to handle Governance, Risk and Compliance (GRC) in the banking sector. Technology advancement continually necessitates the need for more data collection and sharing. This phenomenon poses a significant challenge on the traditional GRC setup. Banks need to continually reevaluate their GRC practices and see how to cope with the increased risks. Before we analyze the new trends, let’s understand the GRC. Here are the three pillars of GRC and their meaning: ● Governance- This is the ethical management of an entity by those in leadership. ● Risk- It is that which hinders a company from its ability to remain competitive in the market. Companies target to mitigate risks cost-effectively. ● Compliance- It is the observance of regulatory requirements of operating a business, data handling, and other business practices. Institutions therefore institute strategies that will help them to implement, monitor and measure the effectiveness of their GRC. Any new technological development means reexamining the GRC to match it with the situation. As banks revolutionize their GRC, it is essential to understand the emerging trends of GRC. Following the trends will help acquire a strong and dependable GRC position. Here are the trends that are changing the GRC landscape in the banking sector: 1. Artificial Intelligence and Reduced Workflows GRC is now more about creating a system of intelligence that leverages technologies such as Artificial Intelligence. It is therefore easy to get critical risks insights from huge volumes of data. This means, you can cluster thousands of credit clients into different groups using specific variables. Then, within each cluster determine clients with the highest risks. A bank can anticipate risks better than ever. It can then take proactive action and mitigate the risks involved. Therefore, GRC services will help make fewer steps and processes to achieve target results. In the same way Customer Relationship Management (CRM) created a foundation for customer management, GRC will build a system of intelligence. This means that there will be predictive analytics, intelligence in the cloud and advanced visualizations. AI innovation in GRC will be incredible. Banks will have access to tools that learn clients’ actions or behavior and automatically detect risks.

2. 2. GRC Becomes Easier and Widespread The processes and tools that are supporting GRC are getting more intuitive and straightforward. For instance, the new GRC software provides more personalized and responsive experiences. Cloud-based GRC is faster and more efficient. Developers are launching more GRC apps to cover a vast range of requirements. They span from regulatory change management to third- party management. GRC providers are making GRC approach simple to secure stakeholders buy-in. The intention here is to create a source of truth that identifies a risk and compliance management approach for the entire entity. Users of this paradigm benefit from the end-to-end approach of governance, risk, and compliance. 3. Consumer Voice is Dominating The setting of standards in any bank takes place at the executives' table. The power of digitalization is melting down the traditional bureaucracy. Customers are setting standards for companies including banks through their voices in social media platforms. An example is the customers’ push for the #DeleteUber campaign. The company had to respond to the consumers' protest. Customers know that they can achieve global support through social media. The digital era enables customers to have all the information at their fingertips; thus they can make informed decisions. Their loyalties are driven by business metrics such as quality of products, ethics and corporate social responsibility. This development translates to putting customers on the forefront and center of making GRC programmes. It suggests that banks should as well uphold public trust and confidence. A huge portion of any corporate value lies in its reputation and credibility. Thus, it should understand its risks and compliance responsibilities in the context of its customers. It is upon the GRC professionals to protect this position for the bank to drive higher customer loyalty. 4. Demand for Instant Value Today’s customer wants instant gratification. For instance, a site will lose viewers if its video takes more than three seconds to load. Similarly, if online bank services are slow, it’s likely to experience customers exit. GRC services can help deliver instant value to customers. An institution can deploy easy-to-use GRC tools usable on smartphones and other smart devices. This development also translates to a bank’s ability to have relevant real-time and actionable intelligence gathered throughout the entire business. To deliver instant value, strategists need to consider deployment of GRC and involved infrastructure in the cloud. Immediate and

3. straightforward GRC deployments are what will quench the customers' demand for ‘now’ services. With the rising levels of cybersecurity threats, GRC should only get better. Your corporation will remain competitive if it takes more informed risks, demonstrates better governance and drives firm-wide compliance. Therefore, observing these trends will help the banks to protect their business.