Building a Compelling Business Case for Boosting your GRC Program

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© 2015 NAVEX Global, Inc. All Rights Reserved. www.navexglobal.com © 2015 NAVEX Global, Inc. All Rights Reserved. www.navexglobal.com © 2015 NAVEX Global, Inc. All Rights Reserved. www.navexglobal.com Building a Compelling Business Case for Boosting Your GRC Program Data, insights and tools to help you build or grow your program—and better protect your organization
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Transcript of Building a Compelling Business Case for Boosting your GRC Program

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Building a Compelling Business Case for Boosting Your GRC Program Data, insights and tools to help you build or grow your programand better protect your organization

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Vice President, Advisory ServicesNAVEX GlobalChris McCleanVice President, Research DirectorForrester ResearchRandy Stephens

P R E S E N T E D B Y

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AgendaIs Your Program Stuck in Neutral?A Framework for Demonstrating the Value of GRCMeasuring the value of automationFundamentalsNext generation metricsEngage Senior Executives With Effective Reporting Q&A

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Its not in the budgetIts not a priorityWe dont want to grow a cost centerOur [CEO/CFO/Board] doesnt see the valueWe dont need more people who say noThat scenario is unlikely / thats not a risk we need to spend resources mitigating

Use the chat function to share other reasons your efforts to build, grow or expand your GRC program get shut down.Pop Quiz: Which of These Have You Heard About Your GRC Program

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Until you can make a credible, compelling business case for GRC, your program could be stuck in neutral.Today well share tips for creating a persuasivebusiness case, including:MetricsToolsBest practicesIf These Are Your Issues, You Need a Compelling Business Case for GRC

Source: Ethisphere, 2016

2015 NAVEX Global, Inc. All Rights Reserved.www.navexglobal.com 2015 NAVEX Global, Inc. All Rights Reserved.www.navexglobal.com 2015 NAVEX Global, Inc. All Rights Reserved.www.navexglobal.comIf those responses are true for you, todays presentation should help. Today, well walk you step by step through some data, tools and best practices help you make the business case for a building a stronger GRC program.

Well help you build a framework you can use to get the support you need from the senior executives you need to partner with to make your program effective and successful. In this presentation, well share: Metrics that make the case for technology and automationFundamentals you need to be measuring, tracking and reporting onData and concepts to take your program to the next levelcreating better connections to top business concerns

Talk So Senior Executives Can Hear

2015 NAVEX Global, Inc. All Rights Reserved.www.navexglobal.com 2015 NAVEX Global, Inc. All Rights Reserved.www.navexglobal.com 2015 NAVEX Global, Inc. All Rights Reserved.www.navexglobal.comNew Ways To Show The Value Of ComplianceChris McClean, Vice President & Research Director

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Can you explain the value of your program?

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Program success metric categoriesUser adoption: Number of active users by Line of DefenseNumber of times needed to re-instruct usersUser satisfaction: User acceptance Can our employees perform their basic roles within the program and find their information?Coverage of programNumber of business areas managing work on the systemUsage of data for business decisions on everyday basis in all the units

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Compliance platform success metricsCATEGORYBENEFITSMETRICSEfficiencyReduced costs of risk assessments and aggregationSpeed of policy development, approval, distributionImproved speed/cost of risk reportingImproved speed/cost/coverage of auditsStaff-hours saved per processPayroll savings from delay or avoidance of staff increaseReduction in costs for internal and external audits.

Risk reductionReduction in incidents, near misses, loss eventsReduction in regulatory fines, actions, law suits, etc.Reduction in time to discover control gaps, violationsReduction in audit/assessment findingsReduced number and cost of incidentsReduced number/size of finesReduced cost of capitalReduced insurance premiumsEnhanced performanceUse of risk info in management/exec decisionsImproved decision making when risk is consideredRisk intelligence coverageRisk management process coverageImproved reputation among stakeholders (partners, regulators, customers, etc.)Reduction in reactionary costsFrequency of risk data used in business decisionsImprovement in financial or operational metrics

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Compliance platform success metricsCATEGORYBENEFITSMETRICSEfficiencyReduced costs of risk assessments and aggregationSpeed of policy development, approval, distributionImproved speed/cost of risk reportingImproved speed/cost/coverage of auditsStaff-hours saved per processPayroll savings from delay or avoidance of staff increaseReduction in costs for internal and external audits.

Risk reductionReduction in incidents, near misses, loss eventsReduction in regulatory fines, actions, law suits, etc.Reduction in time to discover control gaps, violationsReduction in audit/assessment findingsReduced number and cost of incidentsReduced number/size of finesReduced cost of capitalReduced insurance premiumsEnhanced performanceUse of risk info in management/exec decisionsImproved decision making when risk is consideredRisk intelligence coverageRisk management process coverageImproved reputation among stakeholders (partners, regulators, customers, etc.)Reduction in reactionary costsFrequency of risk data used in business decisionsImprovement in financial or operational metrics

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Compliance platform success metricsCATEGORYBENEFITSMETRICSEfficiencyReduced costs of risk assessments and aggregationSpeed of policy development, approval, distributionImproved speed/cost of risk reportingImproved speed/cost/coverage of auditsStaff-hours saved per processPayroll savings from delay or avoidance of staff increaseReduction in costs for internal and external audits.

Risk reductionReduction in incidents, near misses, loss eventsReduction in regulatory fines, actions, law suits, etc.Reduction in time to discover control gaps, violationsReduction in audit/assessment findingsReduced number and cost of incidentsReduced number/size of finesReduced cost of capitalReduced insurance premiumsEnhanced performanceUse of risk info in management/exec decisionsImproved decision making when risk is consideredRisk intelligence coverageRisk management process coverageImproved reputation among stakeholders (partners, regulators, customers, etc.)Reduction in reactionary costsFrequency of risk data used in business decisionsImprovement in financial or operational metrics

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Compliance platform success metricsCATEGORYBENEFITSMETRICSEfficiencyReduced costs of risk assessments and aggregationSpeed of policy development, approval, distributionImproved speed/cost of risk reportingImproved speed/cost/coverage of auditsStaff-hours saved per processPayroll savings from delay or avoidance of staff increaseReduction in costs for internal and external audits.

Risk reductionReduction in incidents, near misses, loss eventsReduction in regulatory fines, actions, law suits, etc.Reduction in time to discover control gaps, violationsReduction in audit/assessment findingsReduced number and cost of incidentsReduced number/size of finesReduced cost of capitalReduced insurance premiumsEnhanced performanceUse of risk info in management/exec decisionsImproved decision making when risk is consideredRisk intelligence coverageRisk management process coverageImproved reputation among stakeholders (partners, regulators, customers, etc.)Reduction in reactionary costsFrequency of risk data used in business decisionsImprovement in financial or operational metrics

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Compliance platform success metricsCATEGORYBENEFITSMETRICSEfficiencyReduced costs of risk assessments and aggregationSpeed of policy development, approval, distributionImproved speed/cost of risk reportingImproved speed/cost/coverage of auditsStaff-hours saved per processPayroll savings from delay or avoidance of staff increaseReduction in costs for internal and external audits.

Risk reductionReduction in incidents, near misses, loss eventsReduction in regulatory fines, actions, law suits, etc.Reduction in time to discover control gaps, violationsReduction in audit/assessment findingsReduced number and cost of incidentsReduced number/size of finesReduced cost of capitalReduced insurance premiumsEnhanced performanceUse of risk info in management/exec decisionsImproved decision making when risk is consideredRisk intelligence coverageRisk management process coverageImproved reputation among stakeholders (partners, regulators, customers, etc.)Reduction in reactionary costsFrequency of risk data used in business decisionsImprovement in financial or operational metrics

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Compliance platform success metricsCATEGORYBENEFITSMETRICSEfficiencyReduced costs of risk assessments and aggregationSpeed of policy development, approval, distributionImproved speed/cost of risk reportingImproved speed/cost/coverage of auditsStaff-hours saved per processPayroll savings from delay or avoidance of staff increaseReduction in costs for internal and external audits.

Risk reductionReduction in incidents, near misses, loss eventsReduction in regulatory fines, actions, law suits, etc.Reduction in time to discover control gaps, violationsReduction in audit/assessment findingsReduced number and cost of incidentsReduced number/size of finesReduced cost of capitalReduced insurance premiumsEnhanced performanceUse of risk info in management/exec decisionsImproved decision making when risk is consideredRisk intelligence coverageRisk management process coverageImproved reputation among stakeholders (partners, regulators, customers, etc.)Reduction in reactionary costsFrequency of risk data used in business decisionsImprovement in financial or operational metrics

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Compliance platform success metricsCATEGORYBENEFITSMETRICSEfficiencyReduced costs of risk assessments and aggregationSpeed of policy development, approval, distributionImproved speed/cost of risk reportingImproved speed/cost/coverage of auditsStaff-hours saved per processPayroll savings from delay or avoidance of staff increaseReduction in costs for internal and external audits.

Risk reductionReduction in incidents, near misses, loss eventsReduction in regulatory fines, actions, law suits, etc.Reduction in time to discover control gaps, violationsReduction in audit/assessment findingsReduced number and cost of incidentsReduced number/size of finesReduced cost of capitalReduced insurance premiumsEnhanced performanceUse of risk info in management/exec decisionsImproved decision making when risk is consideredRisk intelligence coverageRisk management process coverageImproved reputation among stakeholders (partners, regulators, customers, etc.)Reduction in reactionary costsFrequency of risk data used in business decisionsImprovement in financial or operational metrics

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What does your company care about?

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Business Leaders Care About Risk

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Customer Experience Changes Priorities

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Customer-focus Increases Risk Concern

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Reputation Factors Raise Risk Criticality

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Resilient Brands Keep Promises

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Other success metrics to considerCustomer loyalty: Word-of-mouthLoyalty after risk eventsCustomer satisfaction: Survey scoresAlignment to valuesRevenue support:New business opportunitiesRFP question coverage

2016 Forrester Research, Inc. Reproduction Prohibited#

Key Takeaways

Reputational risk is a growing area of concern, which creates opportunities to connect ethics and compliance to business value.

Justify compliance efforts with improvements in efficiency, risk reduction, and improved performance.

Add program success metrics to track how well your technology and processes are rolling out.

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Chris [email protected]

Thank youforrester.com

Are we going to wait for a crisis to do something? Crisis could be a fine, lawsuit, negative press coverage and/or reputation damage that will take years to recover from. (Do we want to be the nextVolkswagen, FIFA, etc.)Are we missing an opportunity to add significant value? More and more studies show that better GRC practices and a strong organizational culture, characterized by ethical behavior from top to bottom, creates improved bottom-line performance.Are we losing a competitive advantage by not investing in GRC? Ability to attract and retain top talent increases, and turnover decreases in the most ethical companies. Are we enjoying short-term gains while setting ourselves up for unacceptable levels of long-term risk? Profits may look good now. But if regulators came in, would we be able to defendand documentour decision-making processes related to compliance? Are we taking the right risksand enough risks? Strong GRC helps you take the right risks in the right way, rather than taking blind leaps. Tool: 5 Disruptive Questions to Tackle Skepticism About the Value of GRC Head On

2015 NAVEX Global, Inc. All Rights Reserved.www.navexglobal.com 2015 NAVEX Global, Inc. All Rights Reserved.www.navexglobal.com 2015 NAVEX Global, Inc. All Rights Reserved.www.navexglobal.comSenior execs and board members expect to see customized, high-level data and information presented thoughtfully. Create a compelling, professional format & structure Deliver reports at the right frequencyInclude (only!) the most crucial, relevant contentAddress risk assessment, emerging trends and current events of interest Elevate senior executive & board engagementEngage Senior Executives & Avoid Common Mistakes in Reporting

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Own it. When something works, celebrate it. When something doesnt, be transparent and make improvements.Make it part of who you are. Drive awareness and participation, showcase efficiencies and performance improvementsCommit and follow through. Set targets and stay focused on your goals.Emphasize benefits. Business flexibility, efficiency gains, improved employee retention, cost reductions.Report and prove. Regular and smart reporting as you improve & grow will help you build on your success. Checklist: Executing on the Business Case

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Id Like to Talk with a NAVEX Global Solutions Expert About [check all that apply]

Getting additional metrics and benchmarks that help me build the business case for GRC program developmentMaking sure my compliance program meets legal and regulatory requirementsTools that help me automate, measure and report on the value of critical components of my compliance program Partnering with an experienced GRC strategic advisor to help strengthen my programGoal setting, scoping and defining resource requirements for an effective GRC program at my organization

2015 NAVEX Global, Inc. All Rights Reserved.www.navexglobal.com 2015 NAVEX Global, Inc. All Rights Reserved.www.navexglobal.com 2015 NAVEX Global, Inc. All Rights Reserved.www.navexglobal.comWere going to talk about some additional tools we want to provide you for making the business case. But first, briefly, we wanted to give you the chance to raise a hand to have a further conversation with us. Check one or more of these boxes and well be happy to get in touch. Or you can message us through the console as well. But let me just read through these.

NAVEX Globals Comprehensive EcosystemRegardless of your programs place on the ethics and compliance continuum, we can help.

2015 NAVEX Global, Inc. All Rights Reserved.www.navexglobal.com 2015 NAVEX Global, Inc. All Rights Reserved.www.navexglobal.com 2015 NAVEX Global, Inc. All Rights Reserved.www.navexglobal.comNAVEX Global provides the right solution to meet todays evolving ethics and compliance challenges, and we are always working toward improving on our offerings to support you. You may have heard about our recent acquisition of The Network. That acquisition has helped us strengthen our overall product offering, and add to the level of innovation were able to add to our Ecosystem.

Key PointsOur Software:Industry-leading solutions that standalone to meet immediate ethics and compliance needs, but also integrated to ensure that critical components of your ethics and compliance program management are connected. This includes our incident management, policy management and enterprise due diligence software.Our Content: Innovative approaches to communicating with todays workers through training content thats ideal for a professional audience. Feedback from clients includes words like: engaging, relevant, great production value, highly customizable and global orientation. Our courses are vetted by some of the worlds leading workplace compliance law firms and exclusively endorsed by SHRM which helps to ensure legal defensibility.This also extends to providing ethics and compliance content to help manage your program codes of conduct and policy writing services to our internal awareness materials that will make your employees more aware of your commitment to a culture of Ethics and Compliance.Our Services:Advisory Services: We are home to the industrys foremost group of compliance experts most of whom are former in-house ethics and compliance officers or former DOJ prosecutors who assist organizations of all sizes with their ethics and compliance responsibilities from program evaluations or, as mentioned, policy and code writing services. Their work and experience also helps to shape our own software solutions through their unique knowledge and work with clients.

NAVEX Globals Resource Center has free resources you can put to work in your program today, including:Benchmarking Reports. Leverage our data to demonstrate where major components of your programhotline, training, policy management, third party risk management and moreare performing against industry norms. http://bit.ly/1Layo5PBy the Numbers: Making the Business Case for Employee Compliance Training. Legal and reputational risks of employee misconduct are massive. Get the data on how effective compliance training helps. http://bit.ly/1V7TgvtDefinitive Guide to Policy Management: Understand how to make all activities related to policy management more efficient and effective http://bit.ly/1NtzPHnNAVEX Globals Blog, Ethics & Compliance Matters: Our expert authors help you stay up to date on the latest trends in E&C. www.navexglobal.com/blog

Additional Tools

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Thank You!Randy StephensVice President, Advisory Services NAVEX [email protected] Chris McCleanVice President, Research Director Forrester [email protected]

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