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Real-World Governance and Cost-Effectiveness

Most organizations are keen on researching methods and are trying their best to meet regulatory and compliance requirements as cost-effectively as possible.

In turn, it is highly time-consuming with increased costs for implementation. If the requirements are not met, there will be cost-prohibitive fines. Today, almost all industries are affected, including non-profit and educational institutions. Each of them is having their own compliance requirements that have to meet the magic check box.

Risk Management vs Compliance

We observe a significant difference between risk management and compliance. A good analogy of compliance is actually of a picture taken at a point in time when risk management and compliance both have the same solution. An example for one of the dangers in ‘Being compliant’ is that, ‘You may look great in a picture, but it has only captured that moment in time, which does not guarantee that you still look the same’. An organization can still meet compliance requirements without reducing its risk at all.  Hence, it is possible to be compliant without being secure. Although, it may be costly to not be compliant. 

GRC Program

Most organizations look at security as a cost with no return on investment. Governance, Risk and Compliance (GRC) requirements do not really go with this perspective.  As becoming compliant does not guarantee security, there are high chances for security breaches to take place continually.  Big organizations possess the ability to pay whatever fine may result and move on. Small organizations will have to go out of business because of this scenario. Thus, developing and maturing a Risk Management program is more essential.

Conclusion

Compliance requirements may directly affect the bottom line. It will not necessarily lower the risk or assist a company in being more secure. The end result is that you can be compliant and yet have a greater number of security holes and risks.  For example, an organization that is PCI compliant, and doing every paperwork right can still experience a very costly breach in the real world.     

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