GRC Software Return on Investment

High Value from Basic ROI Benefits

Finding and landing on an accurate measure of return on investment (ROI) for your GRC platform is an imperative component for any organization. The costs of a new platform need to align with the desired or projected ROI, and while it’s easy to map out what the tangible results from a GRC solution should be, it is the intangibles that provide the best ROI, or in most cases, the highest value of investment.

Calculating and determining true return on investment from GRC software comes from the upgraded performance achieved following the installation of a new program. Look at a three-year projection when lining up costs and benefits from a platform—the benefits, in most cases, will not be immediately apparent. After implementing a new solution, give it time to runand show its real benefits.

Key Elements of GRC Software ROI

There are three major areas to take into consideration when determining and evaluating a GRC platform’s overall value. The first category is efficiency, which consists of costs and upgraded performance enhancements. The next is the reduction of risk, including lowering residual risks and fewer incidents. The final ROI benefit area is strategic performance.

Efficiency

  • Faster report aggregation (data is structured, shared and accessible)
  • Up-to-date information in real-time
  • Decline in inefficiencies and manual rework by reducing administrative tasks
  • Decreased audit costs (less time in preparation and execution)
  • Reduction in number of controls
  • Faster time to remediate deficiencies
  • Flexibility to help the business respond to opportunities and threats more quickly

Risk Reduction

  • Reduction in residual risks
  • Few incidents or “operational surprises”
  • Few regulatory fines and penalties by ensuring your business is compliant with its regulatory environment
  • Decrease in audit findings
  • More relevant mitigation strategy by targeting the real root causes and effectively mitigating risks
  • Lower insurance premiums due to better understanding of your risks and potential exposure so you can select the coverage that suits you rather than the worst case scenario on the market

Strategic Performance

  • Better strategic decisions using risk and compliance information raising organizational value
  • Stronger reputation driving more lucrative relationships
  • Gaining favorable reviews from credit rating agencies reducing the cost of capital
  • Mature enterprise risk management practices can realize up to a 25% valuation increase (according to a study by the Journal of Risk Insurance)

Featured Resource:

Integrated GRC Solutions

Looking for a GRC tool that will provide a true ROI? Onspring has the winning platform. Download our Integrated GRC Solutions data sheet and find out how we can provide ROI for your organization.