GRC professionals hardly need reminding that controls are a frontline defence against risk and non-compliance - but if not constantly monitored and updated, they quickly become liabilities.
Outdated or neglected controls leave your organisation vulnerable to threats and regulatory penalties. To stay secure and compliant, controls should be continuously kept in check, tested and adapted. In this short post, we explore why keeping your controls sharp and ready should be non-negotiable, especially in dynamic risk environments.
The need to adapt to complex and changing risk landscapes
The risk arena is anything but static. New cybersecurity threats, regulatory changes, business shifts and technological advancements continuously reshape the environment that your controls are designed to protect. If your controls are left unmonitored, they quickly become outdated and ineffective against new and evolving risks.
For instance, the post Covid trend for remote work and increasing reliance upon cloud computing has introduced new vulnerabilities, including data breaches and third-party risk exposure. Controls that were designed for an on-premises, in-office environment might not adequately address the risks associated with these changes. Constant monitoring allows GRC professionals to ensure controls are adapted to evolving threats in real time.
Regulatory compliance is an ongoing commitment
Regulatory frameworks such as DORA (Digital Operational Resilience Act), SOX (US Sarbanes Oxley Act) and the anticipated UK SOX are continuously being updated, and staying compliant requires vigilance. A ‘set-it-and-forget-it’ approach to controls can lead to fines, penalties and reputational damage if your organisation falls out of compliance due to shifting legal requirements.
Regulations are often updated to reflect new risks in the market, such as advancements in data privacy laws or emerging fraud tactics and in the case of DORA, to better protect customers. By keeping controls current, your business remains compliant and avoids costly regulatory pitfalls. Monitoring controls for gaps that arise from regulatory changes is essential to maintain alignment with industry standards.
Beware ‘control decay’
Over time, control environments can weaken due to various factors, such as changes in personnel, evolving business processes or the introduction of new technologies. This is known as ‘control decay.’ Regular monitoring and updates ensure that your controls are operating as intended and reflect both the current organisational environment and corporate governance best practice
Safeguarding the cyberscape
Efforts and methods to exploit vulnerabilities only grow in sophistication as bad actors continuously develop new methods to expose and exploit vulnerabilities. Static controls, especially if unmonitored, can be easily bypassed using advanced techniques. Regular monitoring allows you to identify weaknesses, update controls and implement new safeguards in response to emerging threats.
Improved audit readiness
When controls are actively monitored and regularly updated, your organisation is better positioned to demonstrate compliance during internal or external audits. Auditors expect to see evidence that controls are both current and functioning as intended.
Consistent documentation of control testing, performance assessments and remediation efforts help satisfy the regulators. Constant attention to controls ensures that your business can easily provide this information, reducing the stress and time investment often associated with audit preparation.
Building trust with stakeholders
For many organisations, trust is a key differentiator, especially when it comes to relationships with customers, partners, investors and third-parties.
Demonstrating that you have a robust, proactively managed GRC framework, where controls are regularly updated and monitored, helps foster confidence and trust. The ability to report on how controls are actively managed and demonstrate their effectiveness can strengthen partnerships and open new business opportunities.
How to maintain a healthy control environment
- Leverage technology to automate the monitoring of key controls. Continuous monitoring can flag anomalies and highlight areas where controls are at risk of failure or obsolescence.
- Schedule routine assessments to evaluate the performance and relevance of your controls. This should include testing for effectiveness, identifying control gaps and making adjustments as needed.
- Connect your control monitoring efforts with your incident response plans. When risk events occur, it’s an opportunity to reassess controls and identify areas for improvement.
- Ensure your choice of GRC solution includes alerts that notify you of changes in regulations that could impact your control framework. Also subscribe to industry updates to stay on top of emerging and evolving regulations.
- Encourage and support teams across the organisation to understand the importance of maintaining a health controls environment. A culture of compliance ensures that everyone contributes to the overall health of your GRC agenda.
Stay in control with Decision Focus
As the backbone of risk management and compliance, controls that are not continuously updated or monitored are as good as non-existent in fast-moving risk environments.
Decision Focus GRC software helps you evolve your controls environment in step with your organisation and the world around it, helping you remain robust and resilient, ready to face whatever challenge comes next.
One single integrated platform provides 360˚° visibility of risks and controls enterprise-wide with the flexibility of over 20+ modules that you can select to meet today’s business challenges and add to as you grow and needs evolve.