Key Considerations For Buyers Of GRC Software In 2024

Key Considerations For Buyers Of GRC Software In 2024

In the rapidly evolving governance, risk management and compliance (GRC) landscape, firms are grappling with increased regulatory demands and a complex melting pot of risks, from cyber threats to environmental, social and governance (ESG) concerns. The Verdantix Buyer’s Guide: Governance, Risk and Compliance Software (2024) provides an essential resource for decision-makers tasked with selecting software solutions to navigate these challenges. The report analyses 34 providers and offers detailed profiles of 14 prominent vendors, incorporating direct vendor data and insights from the Verdantix Global Corporate Survey 2023: Risk Management Budgets, Priorities & Tech Preferences to highlight key trends and buyer priorities.

Although GRC software presents a mature solutions market, buyers must still carefully consider how software platforms can support their GRC strategies and practices. This is especially the case with the fast pace of innovation, as solutions are evolving far beyond their traditional audit and workflow roots, covering diverse geographies, institution types and market sectors (see Market Insight: The Future Of GRC Technology).

This growth is largely driven by a dynamic and increasingly complex regulatory environment, marked by a plethora of both financial and non-financial regulations, including climate disclosure demands such as the EU CSRD and CSDDD, supply chain due diligence acts, stringent data protection laws, financial reporting standards and sector-specific regulations. To meet these demands, firms are recognizing GRC as not just a necessary strategic framework, but also as a critical technological asset for streamlined operational efficiency, cohesive accountability and the digitization of risk management processes.

Reflecting this shift, the Verdantix 2023 risk management global corporate survey indicated that 37% of risk executives plan to increase their GRC software budget by 1-9% within the next two years. Customer budget allocation for GRC is not only a response to the convergence of risks, but also represents a proactive strategy to go beyond mere regulatory adherence and towards the governance of risk to enable the realization of long-term organizational goals.

Key considerations for prospective buyers
When selecting GRC software, there are several factors risk decision-makers should consider to ensure they choose a solution that best fits their organizational needs:

• GRC system architecture types.
  When selecting a GRC solution, organizations are faced with a choice between different system architecture approaches, each offering unique benefits and challenges. Platform-based solutions offer comprehensive pre-set functions but may involve high initial costs and integration challenges. Meanwhile, modular plug-and-play solutions allow for targeted functionality and scalability – but may result in higher long-term costs and integration issues. A hybrid model merges these benefits and challenges.
  
  
• Platform flexibility to support the complexity of business processes.
  GRC platforms need to be flexible to support a range of business processes with customizable workflows, report generation and risk assessment tools. Furthermore, seamless integration with existing IT infrastructure and other business applications is an essential consideration, to support diverse data formats and communication protocols. Firms should carefully assess their priorities, considering the required levels of platform configurability and the potential impact on latency, particularly with the complexity of their business operations and the volume of data processing involved.
  
  
• Industry-specific capabilities and features.
  Firms must select GRC solutions that offer features tailored to their industry-specific needs, such as different risk typologies, assessment templates and regulatory libraries. For example, special attention should be paid to solutions with expertise in managing third-party risks in sectors like manufacturing and retail, to ensure effective compliance and risk mitigation.

The Buyer’s Guide report reveals that as GRC challenges grow in complexity, vendors are rapidly evolving their solutions to meet firms’ governance, risk and compliance needs. By understanding the current market landscape and considering the specific needs of your organization, you can select a GRC platform that not only addresses today’s challenges but also scales for future demands. For a deeper dive into how to navigate the GRC software market, read Verdantix Buyer’s Guide: Governance, Risk and Compliance Software (2024) and attend the Verdantix Governance, Risk And Compliance: Your Ultimate Guide To GRC Software Selection webinar. For further insights into risk management services and technologies, please visit the Verdantix risk management insights page.