GRC and GRC Frameworks

Om Harishree Ganapathaye Namah,

-Krishnaprasad SV
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11-08-2024
 About Me

• 15+ Years of Experience in Information Security

• Secretary, ISACA Trivandrum Chapter

• Credentials: CISA, CDPSE, ISMS & QMS LA, CSA STAR Auditor, ISACA Mentor

• Organizations worked for: EXL Service, Envestnet, Allianz Technology

• Email: Krishnaprasad.sv@outlook.com
Krishnaprasad SV
Allianz Technology SE
• LinkedIn: https://www.linkedin.com/in/krishnaprasadsv

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 AGENDA
• GRC – Introduction
• Importance of GRC in an organization
• Governance
• Risk
• Compliance
• Industry Standard GRC Frameworks
• COSO
• ISO 31000
• NIST CSF
• COBIT
• SOX
• GDPR
• Basel III
• NIST SP 800-53

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 GRC - Governance Risk Compliance
Governance
Risk
Governance is an organization's framework of policies
Organizations encounter various risks in finance, legal, Compliance
and rules aimed at achieving its goals. It outlines the
strategy, and security. Effective risk management helps Compliance means following the rules and regulations
responsibilities of key stakeholders, including the board
identify these risks and find ways to mitigate them. An that apply to the organization, whether they’re laws,
and senior management, and encompasses principles
enterprise risk management program is implemented industry standards, or internal policies.
like ethics, accountability, transparency, conflict
to anticipate potential issues and minimize losses
resolution, and resource management.

Example for Governance:

The IT leadership creates a strategic plan that aligns Example for Risk: Example Compliance:
technology projects with the company’s business The IT organization identifies major risks, like The IT organization ensures it follows important laws
goals. They establish clear policies and procedures for cyberattacks and system failures, that could disrupt and standards, like GDPR, DORA and security
decision-making, project management, and the business. They implement strong security standards (ISO 27001). A dedicated team regularly
technology use across the organization. This ensures measures and backup systems to reduce these risks reviews processes to make sure they’re compliant,
consistency and that all IT efforts contribute to the and minimize damage if something goes wrong. helping the company avoid legal issues and fines
company’s success.

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 Importance of GRC
As IT organizations grow and evolve, they face increasing complexity in managing
their critical activities. To navigate this complexity effectively, they need to
integrate traditional management practices into a unified framework that
enhances overall performance and collaboration. We can list the importance of
GRC for an organization as below:

• As organizations become more complex, they must identify and manage

critical activities.

• Integrating traditional management practices into a unified discipline is

essential for increasing the effectiveness of people, processes, technology,
and facilities.

• GRC fosters collaboration by breaking down barriers between organizational

units, helping achieve strategic goals.

• Implementing GRC programs enables better decision-making in a risk-aware

environment.

• A GRC strategy unites the organization in its policies, decisions, and actions,
ensuring a shared perspective.

• GRC also helps organizations comply with regulations, build customer trust,
and protect against cyber risks and penalties.

When we try to understand more about expansion of each letter in GRC in an IT

Organization Context, it has some overlap. Let us discuss them in next slides:

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 Governance – Context of IT Organization
In the context of Governance, Risk, and Compliance (GRC) for an IT company, governance

refers to the frameworks, policies, and processes that ensure effective management and

oversight of the organization’s IT operations. Here’s what governance typically involves

for an IT company:

• Strategic Alignment: Ensuring IT aligns with business goals.

• Policy and Procedure: Establishing and enforcing IT policies.

• Leadership and Oversight: Defining roles and overseeing IT operations.

• Performance Management: Monitoring and evaluating IT performance.

• Risk Management: Identifying and managing IT risks.

• Compliance: Adhering to regulations and standards.

• Resource Management: Managing IT budgets, staffing, and assets.

• Change Management: Overseeing IT changes and projects.

• Accountability: Reporting IT performance and issues to stakeholders.

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 Risk – Context of IT Organization
In the context of an IT company, Risk in GRC (Governance, Risk, and Compliance) refers to the

identification, assessment, and management of potential threats that could impact IT

operations and business objectives. Here’s what it typically involves:

• Risk Identification: Spot potential threats like cyber-attacks or system failures.

• Risk Assessment: Evaluate the likelihood and impact of these threats.

• Risk Mitigation: Apply controls to reduce or manage risks.

• Risk Monitoring: Continuously track and review risks and controls.

• Incident Management: Respond to and recover from IT incidents.

• Compliance Risks: Ensure adherence to regulations to avoid penalties.

• Vendor Risks: Assess and manage risks from third-party services.

• Change Management Risks: Evaluate risks related to IT changes.

• Communication of Risk: Report risks and controls to stakeholders.

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 Compliance – Context of IT Organization
In an IT organization, Compliance in GRC (Governance, Risk, and Compliance) refers to

adhering to laws, regulations, and industry standards that govern IT operations and data

management. Here’s a breakdown of how compliance is managed:

• Regulatory Adherence: Ensure IT practices meet legal requirements (e.g., GDPR, HIPAA).

• Standards and Frameworks: Follow industry standards (e.g., ISO/IEC 27001, NIST).

• Policy Development: Create and enforce IT policies for data protection and security.

• Monitoring and Reporting: Track compliance status and generate reports.

• Training and Awareness: Educate employees on compliance and secure practices.

• Incident Management: Manage responses to compliance-related incidents.

• Documentation: Maintain records of compliance efforts and audits.

• Vendor Compliance: Ensure third-party vendors meet compliance standards.

• Compliance Audits: Regularly assess compliance through audits and reviews.

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 Industry Standard GRC Frameworks

A framework is a conceptual structure that provides a

comprehensive set of guidelines, best practices, and standards
for achieving specific goals or managing particular aspects of an
organization. It typically outlines the key components, processes,
and relationships necessary to address complex issues effectively.

GRC frameworks provide structured approaches for organizations

to manage their governance, risk management, and compliance
activities. These frameworks help ensure that organizations
operate effectively, adhere to regulations, and handle risks
appropriately.

These industry standard frameworks provide valuable guidelines

and best practices for managing governance, risk, and
compliance. By implementing these frameworks, organizations
can improve their risk management practices, ensure regulatory
compliance, and strengthen their overall governance structures.

Each framework offers unique benefits and can be selected based

on specific organizational needs and industry requirements.

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 COSO Framework
• Description:
The COSO (Committee of Sponsoring Organizations) framework provides a
comprehensive approach to designing, implementing, and evaluating internal
controls. It is designed to help organizations achieve their objectives in
governance, risk management, and compliance by establishing a robust control
environment.

• Applicability
Useful for organizations seeking to enhance their internal control environments,
improve risk management processes, and ensure compliance with financial
reporting requirements. It is widely applicable across various industries and
helps in establishing a strong governance framework.

• Regional Mandate:
Not mandatory but widely adopted globally as a best practice. In the U.S., it is
often used for compliance with the Sarbanes-Oxley Act (SOX).

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 ISO 31000
• Description:
ISO 31000 provides guidelines for risk management, focusing on integrating risk
management into an organization’s governance framework. It offers a
structured approach to identifying, assessing, and managing risks.

• Applicability
Suitable for any organization regardless of size or sector. It supports effective
risk management practices and enhances governance and compliance.

• Regional Mandate:
Not mandatory but widely recognized as a global standard. Organizations adopt
it to improve risk management practices and demonstrate commitment to best
practices.

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 NIST Cyber Security Framework
• Description:
The NIST Cybersecurity Framework offers guidelines for managing and reducing
cybersecurity risks. It provides a set of best practices and standards to enhance
an organization’s cybersecurity posture.

• Applicability
Ideal for organizations of all sizes and sectors aiming to improve their
cybersecurity. It aligns cybersecurity practices with business objectives and
regulatory requirements.

• Regional Mandate:
Voluntary in the U.S., but widely adopted by both public and private sectors. It
is particularly relevant for organizations dealing with critical infrastructure and
federal contractors.

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 COBIT
• Description:
COBIT is a framework for IT governance and management that helps align IT
with business goals, manage IT-related risks, and ensure effective use of IT
resources. It provides a comprehensive approach to IT governance.

• Applicability
Useful for organizations seeking to enhance IT governance and management. It
supports alignment between IT and business objectives and helps manage IT-
related risks.

• Regional Mandate:
Not mandatory but widely used globally as a best practice for IT governance
and management.

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 SOX (Sarbanes-Oxley Act) Compliance Framework
• Description:
SOX is a U.S. federal law aimed at improving the accuracy and reliability of
corporate financial reporting. It mandates stricter internal controls and
reporting requirements for public companies.

• Applicability
Specifically relevant for publicly traded companies in the U.S. It helps ensure
financial transparency and accountability and enhances internal controls to
prevent and detect fraud.

• Regional Mandate:
Mandatory for publicly traded companies in the U.S. and those with securities
listed on U.S. exchanges.

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 GDPR - General Data Protection Regulation
• Description:
GDPR is an EU regulation that sets guidelines for data protection and privacy. It
aims to protect personal data and ensure that organizations handle data
responsibly.

• Applicability
Relevant for any organization that processes personal data of EU residents,
regardless of the organization's location. It supports compliance with data
protection laws and enhances privacy practices.

• Regional Mandate:
Mandatory for organizations handling the personal data of EU residents. Non-
compliance can lead to significant fines and penalties.

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 Basel III
• Description:
Basel III is an international regulatory framework for banks that focuses on
improving regulation, supervision, and risk management within the banking
sector. It enhances capital and liquidity requirements.

• Applicability
Primarily relevant for financial institutions, especially banks. It helps manage
financial risks and ensures the stability and soundness of the banking sector.

• Regional Mandate:
Mandatory for banks and financial institutions in countries that are signatories
to the Basel Accords**. Compliance is required to meet international banking
regulations.

**Signatories to the Basel Accords are countries or jurisdictions that agree to implement the international banking
regulations set forth by the Basel Committee on Banking Supervision. These regulations aim to enhance global financial
stability by setting standards for capital adequacy, risk management, and banking supervision.

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 NIST SP 800-53
• Description:
NIST SP 800-53 provides a comprehensive set of security and privacy controls
for federal information systems. It helps organizations protect their information
systems and ensure compliance with federal security requirements.

• Applicability
Used by federal agencies and organizations handling federal information. It
supports the protection of information systems and compliance with federal
regulations.

• Regional Mandate:
Mandatory for U.S. federal agencies and contractors handling federal
information. It is also used by other organizations to meet federal security and
privacy requirements.

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 Conclusion
By adopting and implementing appropriate frameworks, organizations can achieve

a holistic and integrated approach to managing their governance, risk, and

compliance responsibilities. This not only helps in meeting regulatory requirements

but also in driving operational efficiency and strategic alignment. As we move

forward, embracing these frameworks will enable us to proactively address risks,

improve governance practices, and maintain robust compliance, ultimately

supporting sustainable growth and organizational resilience.

Thank you for your attention, and I encourage you to leverage these insights to

strengthen your GRC practices and foster a resilient and compliant organizational

environment.“

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