I often see the question “When is a good time to start a Governance, Risk, and Compliance framework within an organization?” The fact of the matter is, in most organizations you’ve already started some aspect of a GCR framework organically. Strong GRC related policies are naturally a product of a business becoming more successful.
What is a Governance Risk and Compliance Framework?
A GRC framework is essentially a company’s strategy for governance of processes, risk management at the enterprise level, and organizational compliances. As you will see in a lot of IT risk marketing material – most organizations think about People > Process > Technology, in that order. You, as a business, have hired all the right people. Now you need the right frameworks in place to govern the people, their budget, and the technology that gets implemented. It seems simple enough, but is often an overlooked and reactive task by a lot of Canadian startups.
Reasons Why Canadian Startups May Develop a GRC Framework
As mentioned, a lot of startups probably already have something in place. This can occur for a variety of reasons, but for the most part have external factors as the catalyst. Some of those external factors may be:
- If the company operates in an industry that’s heavily regulated like Healthcare for example.
- If the organization faces various compliances and the requirements associated with them. For example, in PCI-DSS there is a need to have up to date policies and procedures that are associated with the company’s payment card environment.
- Partners and clients will often ask if organizations have these types of frameworks in place.
- Senior executives and board members may look to have some of these things in place. This may be because they want to reduce risk for themselves and potential investors.
Each of the reasons why a Canadian startup may start to develop a GRC framework are massive factors for the success of a business. So why wait to be asked? If you’re a Canadian startup, you can boost your valuation as an organization by paying attention to a GRC framework in the early stages of your company. Be proactive with a GRC framework that allows anyone involved in your business to reduce your risk.