Regulatory and Standard Frameworks: Guidance not Gospel for your GRC Program
C1Risk is the leading integrated risk management platform and enables assets to be mapped to associated risks, internal controls mapping to risks, and external control requirements to be mapped to internal controls and policies. Integrate and automate your risk management for complete, continuous security.
Many customers come to us with an immediate need, as well as longer term priorities for their information security/GRC programs. Often, the short term is to achieve some form of compliance, be it a SOC 2, PCI DSS, ISO 27001, HIPAA, CMMC, FedRAMP, or SOX. Or, through a risk management lens they need help with findings and risk mitigation. Longer term, the majority are looking to identify and implement process improvements through time and cost efficiencies and a more enhanced year-round, continuous monitoring, risk and compliance program.
Whether the priority is risk mitigation, compliance, or policy development, helping companies develop an effective approach to building internal controls can have an immediate and lasting impact on their security program and posture. Internal controls are a crucial part of risk management for organizations, as they deliver compliance and help to mitigate and manage the risks associated with various business activities.
Where to start then, when developing your internal controls? The seemingly obvious and often adopted approach may be to base internal controls on your regulatory obligations or according to the standard you are trying to achieve? That serves a purpose, however, it is important to understand that regulatory and external control frameworks are guidance only for your organization’s security posture.
Rather, if you start with your risks and associated assets, i.e. what are the risks and where might they have an impact on the company, you can build an effective internal control framework that is specifically relevant to your company. Then, by applying your compliance requirements (regulatory or otherwise) to those controls, you can make a case for the inclusion or exclusion of certain requirements in that framework based on whether they are relevant to your organization.
Here are 5 advantages to putting regulations and standards to work for you, rather than vice-versa, seeing this as an incumbent on the company.
Customization: Another advantage of the guidance approach is that it enables organizations to customize their controls to suit their unique needs and circumstances. For example, a large multinational corporation may have different risks and exposures compared to a small startup, and the controls that are most effective for one may not be suitable for the other.
Innovation: The guidance approach also promotes innovation by encouraging organizations to find new and better ways to manage their risks. Rather than simply following a rigid set of rules, organizations are free to experiment and find new ways of managing risks that are more effective and efficient.
Cost savings: The guidance approach can also result in cost savings for organizations. Organizations are able to reduce the costs associated with compliance and can allocate resources to other areas of their business, by limiting their scope to priority needs.
Aligns with business goals: The guidance approach also aligns with the business goals of organizations. Rather than simply following a set of requirements, organizations are free to prioritize their risks and implement controls that align with their business goals. This can help organizations to achieve their strategic objectives and achieve better outcomes.
Encourages self-regulation: The guidance approach can also encourage organizations to take a more proactive approach to risk management and self-regulation. By allowing organizations to determine their own controls and manage their own risks, the guidance approach can help organizations to become more self-reliant and responsible for their own risk management processes.
C1Risk is the leading integrated risk management platform and enables assets to be mapped to associated risks, internal controls mapping to risks, and external control requirements to be mapped to internal controls and policies. Integrate and automate your risk management for complete, continuous security.