In order to build sustainable brands that will grow the business, consumer product companies (CPG), retailers, and e-commerce companies are diversifying their product portfolios. As they revisit their complex supply chains and branching out into global markets, companies in this sector find themselves grappling with regulatory requirements and risk.
Governance, Risk and Compliance (GRC) impacts the entire organization including:
- Supply chain
- Credit risk
- Product quality and safety
- Market risk
- Operational risk
IT-related risks are emerging as a top threat for the retail sector as security and data privacy regulations and risks move to the forefront. A single cyber attack revealing sensitive customer data such as credit card numbers can result in immediate negative publicity. Social media has become a large risk factor as complaints about products and services can now reach stakeholders in seconds over the Internet. Finance and accounting, order management, HR and marketing – all of these functions have their own requirements for governance, risk and compliance, and yet they are all working in independent silos.
A new approach is needed to mitigate enterprise risk and it must be integrated across different functional departments to be truly successful. Companies in the retail sector are finally taking a look at their fragmented business units, periodic audit projects, developing continuous controls and monitoring, and real time visibility to compliance, all while meeting statutory and regulatory requirements. This is a daunting task and many companies lack the infrastructure to manage the process of instituting these controls. Our GRC model takes the burden of managing this process off of the already stretched business units and installs a technology solution to manage the data outputs.
This new unified approach includes replacing multiple audits performed by each business unit and function inside the organization. It includes a detailed assessment of risk that is integrated across finance, IT, operations and legal. It includes leveraging data from each functional area and combing that information to enable executives to make fact-based decisions about risk and whether or not they are in compliance with regulatory requirements such as Sarbanes-Oxley and PCI.
The outcome? A well rounded approach to governance, risk and compliance to protect the organization and its stakeholders.