As a professional risk manager, it can be tough to clarify where exactly your organization stands and what improvements you should prioritize, especially to stakeholders outside of dedicated governance, risk and compliance (GRC) teams. GRC maturity models were created to help you and your organization classify your current risk management efforts and determine what resources you’ll need to reach the next level of GRC maturity.
This might sound abstract, but in this guide to the GRC maturity spectrum, we’ll break down each of the five maturity levels with concrete, real-world examples. That way, you’ll be ready to translate maturity model guidelines into actionable recommendations for policy management and other business operations.
Table of Contents
What Maturity Models Are and Why They Matter
GRC organizations can reference multiple maturity models as they map out their path to growth. In this guide, we’ll focus on a five-stage model most useful as an internal reference point for organizational integrity, rather than as a blueprint for complying with any specific set of regulations.
That makes this model an excellent starting point for internal audits, board presentations and similar internal communications and strategic efforts. Just keep in mind that you may need to employ different models for certain business functions later down the line, such as third-party risk management.
The 5 GRC Maturity Levels
No matter what goals your GRC team might be working toward right now, assessing where you stand on the maturity spectrum is always an excellent first step. These models are designed to help risk managers identify weak points and create a strategy purpose-built for plugging security gaps and guiding business processes as you improve your data security.
Read more: Understanding and Leveling Up Your CMMC Maturity
Level 1: Initial (Ad Hoc)
You’ll know your organization falls into the first level of GRC maturity if your team has little to no recorded policies, standard processes or clear hierarchies.
While not every GRC team needs to strive to reach the highest levels of maturity, the first level won’t meet your organization’s risk assessment and compliance needs. Without clear, scalable processes, chaotic, unpredictable reactions can become an obstacle for other, higher-functioning sectors of the business.
Level 2: Managed (Repeatable)
Your organization belongs at level two if you have some basic project management processes in place, but any tasks that don’t fall neatly into those buckets turn into major ordeals. In many cases, these problems are caused by siloed GRC teams with insufficient integration into the larger organization.
Keep in mind that falling into this category doesn’t necessarily mean you need to radically overhaul your organization’s GRC tools. Progressing to the higher levels can require a significant investment of time and money that may not be justified for every function or every organization.
Level 3: Defined (Standardized)
At level three, your GRC program has an extensive and frequently updated body of documentation laying out clear processes for nearly every possible ask. You can easily onboard new team members, implement automated systems, and evaluate project success based on adherence to the given process. Ideally, you’ve selected a Common Controls Framework (CCF) that unifies the various regulatory requirements your organization is subject to.
This is the point where GRC leaders or members of upper management might require a relevant maturity model to identify places for improvement. Breakdowns in communication or compliance won’t be as immediately obvious as they would at lower levels.
Level 4: Quantitatively Managed (Predictable)
So where does your team improve when all of your work processes are accurately recorded and competently managed? The hallmark of level four is the next step: quantitative management.
Rather than simply classifying any completed task as a success, a GRC team at level four has identified key performance indicators (KPIs) that quantify the most important factors for success. KPIs might include return on investment (ROI) for GRC initiatives, client feedback, performance reviews and any other metrics that clarify how the team is currently performing and which processes need improvement.
You’ll want to maintain at least a level four GRC operation if you plan on working primarily or exclusively with governmental organizations or other high-security clients.
Level 5: Optimizing (Innovating)
You might expect that reaching level five represents the summit of your GRC strategy, a peak from which you can kick back and admire how far you’ve come. In fact, level five is all about continuous improvement.
With comprehensive documentation, standardized processes and clear KPIs, your GRC team has all the tools they need to focus on innovating and improving their existing model, rather than constantly being distracted by breakdowns in communication and implementation.
It’s important to note that as your GRC operation develops, some roles or functions may fall into different levels of maturity. This is normal, as long as everyone is working steadily toward a clear shared goal of improvement.
What Each Level of GRC Maturity Looks Like in Practice
How does this theory apply to a working business? Check out examples of actual tasks you and your team might be handling at each stage of the GRC maturity cycle, including what actions you’d ideally be taking to reach the next level.
Read more: Charting Your Cybersecurity Maturity Model Certification Path
Level 1: Laying the Foundation
- Slow, manual reporting: At this level, GRC operations are slow, small and often tedious. Without repeatable processes, each task can feel like starting from scratch.
- Setting targets: Start your journey toward level two by identifying your ideal maturity level for each function and when you hope to reach it. Don’t think of this as a strict timeline but rather as a rough path to improvement.
- Seeking guidance: For help getting organized, compare your existing processes to your ideal framework, like the NIST Risk Management Framework.
Levels 2 and 3: Getting Organized
- Understanding your organization: The path from level two to three begins with charting your organization, including the specific roles and functions of your GRC team members, as well as board oversight and any decision-making stakeholders outside of your department.
- Creating documentation: As your team completes tasks, record each step of the process for future reference. Be sure to document any obstacles encountered and suggestions for avoiding them next time.
- Standardizing work: Use that documentation and any existing project management resources to create a repeatable process for each type of task.
Levels 4 and 5: Embracing Optimization
- Identifying key metrics: At the upper levels of maturity, your team’s focus shifts from documenting and standardizing procedures to improving performance. Start by determining the best metrics for evaluating your success. Include KPIs that will resonate beyond the GRC team and demonstrate your value to the larger organization.
- Implementing tracking systems: Tracking your team’s KPIs shouldn’t take up time better spent improving them. You’ll need to dedicate resources to setting up a system that can monitor these metrics for you.
Chart Your Path to GRC Maturity
Now that you know how your team can benefit from understanding and improving your GRC maturity level, it’s time to take what you’ve learned and apply it to your own processes.
This guide is a great start, but you’ll need more details to convey the importance of these actions to your team and your wider organization. Find all the information you’ll need in the free Onspring ebook Building Your GRC Roadmap.
