How to Implement an Effective ServiceNow Integrated Risk Management (IRM) Application

The effective implementation of Governance, Risk, and Compliance (GRC) AKA Integrated Risk Management (IRM) business processes is crucial for an organization to comply with compliance protocols set by the regulatory authority.

The IRM application has many modules viz Policy Management, Compliance Management, Risk Management, Audit Management.

Each module has its own significance and the purpose.

Policy Management: Ensure all organizational policies are adhered by all employees, departments within an organization – Single source of Policy related information.

Accurate and up-to-date policy information

• Policy adaptation, compliance metrics
• Portal to notify policy exceptions,
• meeting key performance indicators (KPIs),
• passing external audits,
• and managing manual reporting processes.

To address these challenges, decision-makers seek robust GRC solutions that centralize operations, enhance accountability, and streamline processes. One such solution is ServiceNow GRC, a comprehensive platform that enables organizations to automate and optimize their GRC practices. By exploring the successful implementation of ServiceNow GRC, decision-makers can gain insights and learn from the experiences of companies that have transformed their GRC landscape, leading to improved compliance, risk management, and operational effectiveness.

This blog delves into the details of the challenges of the GRC implementation process and how to deal with it.

What is ServiceNow GRC Implementation?

ServiceNow GRC is a comprehensive platform that enables organizations to streamline and automate their governance, risk management, and compliance processes. It provides a centralized and integrated approach to manage policies, track compliance activities, and mitigate risks. ServiceNow GRC offers features such as policy and control management, risk assessments, compliance management, and reporting capabilities. By leveraging this platform, organizations can enhance transparency, accountability, and efficiency in their GRC operations.

One of our clients, a leading global transportation and logistics company, recognized the need for a robust GRC solution to address the challenges they faced in managing policies, compliance, and risk.

What is the significance of GRC?

Without a robust GRC system in place, organizations face numerous challenges and risks. Policies may become fragmented and outdated, leading to confusion and non-compliance. Compliance activities become disjointed and difficult to track, increasing the likelihood of violations and regulatory penalties. Inadequate risk management exposes organizations to potential threats, such as data breaches or operational disruptions. Furthermore, the absence of a centralized GRC solution hampers visibility and reporting, making it challenging to monitor performance and make informed decisions. Inefficient manual processes consume valuable time and resources, leaving little room for proactive risk mitigation and strategic planning. Overall, the lack of proper GRC practices exposes organizations to operational inefficiencies, compliance gaps, financial losses, reputational damage, and increased vulnerability to risks.

Our client, being a global transportation and logistics company, was not immune to the challenges that arise from the absence of a proper GRC system.

Let’s delve into the challenges they encountered and the strategies they employed to overcome them.

Challenges in GRC Implementation:

Our client faced several challenges in their GRC landscape before the implementation of ServiceNow GRC. These challenges included:

• 30% Rework due to Soiled Policy: They struggled with maintaining the accuracy and integrity of their policies, resulting in a significant amount of rework due to outdated or incorrect policy information.
• 20% Poor Adaptation of Policies: Employees within the organization had difficulty adapting to the existing policies, leading to inconsistencies and non-compliance.
• 30% Poor Reporting of Policy Exceptions: The previous system lacked effective reporting mechanisms, making it challenging to track and manage policy exceptions and violations.
• 25% Failure to Comply with KPIs: They faced difficulties in meeting key performance indicators (KPIs) related to compliance, risking regulatory non-compliance and potential penalties.
• 20% Audit Failures by External Auditors: The previous GRC system failed to meet the requirements of external auditors, resulting in audit failures and increased scrutiny.
• 35% Manual Reporting of Issues: The absence of automated reporting capabilities compelled our client’s teams to rely on manual processes, leading to inefficiencies, delays, and potential errors.

In light of the challenges faced by our client in their GRC landscape, it became evident that a robust solution was necessary to overcome these obstacles and drive positive change. The complexities of managing policies, ensuring compliance, and mitigating risks required a comprehensive platform that could centralize operations, streamline processes, and provide real-time visibility.

Recognizing the need for an integrated and efficient GRC Solution, they embarked on the implementation of ServiceNow GRC. This decision was driven by the platform’s reputation for its capabilities in policy and control management, risk assessments, compliance tracking, and reporting functionalities. By leveraging ServiceNow GRC, they aimed to transform their GRC practices, address the challenges head-on, and achieve a range of outcomes that would enhance their governance and compliance framework.

GRC Implementation Outcomes:

The implementation of ServiceNow GRC brought about significant positive outcomes for our client.

The key outcomes achieved are as follows:

• Soiled Operations Centralized on ServiceNow GRC: By centralizing their GRC operations on the ServiceNow platform, our client eliminated the challenges associated with maintaining accurate and up-to-date policies.
• 46 Policies for 30+ Departments: our client successfully developed and implemented 46 policies across more than 30 departments, ensuring consistency and alignment with organizational objectives.
• Enhanced Accountability and Policy Ownership by 35%: With ServiceNow GRC, they improved accountability and policy ownership among employees, leading to better compliance and a stronger culture of responsibility.
• 780+ Controls Developed for Various Business Units: The implementation facilitated the development and implementation of over 780 controls, enabling them to effectively manage risks and ensure adherence to policies.
• Centralized Data Model Across the Enterprise: ServiceNow GRC enabled our client to establish a centralized data model, promoting data integrity, consistency, and accuracy across the organization.
• 1300+ Control Objectives Across 50+ Business Units: They successfully defined and implemented more than 1300 control objectives across 50+ business units, ensuring comprehensive coverage of risks and compliance requirements.
• 40+ Dashboards for Policy, Compliance, and Risk: ServiceNow GRC provided our client with real-time dashboards and reports, enabling stakeholders to monitor policy compliance, risk status, and overall GRC performance.
• Live Metrics Visibility into Policy & Compliance: Through the implementation of ServiceNow GRC, they gained live metrics visibility, empowering them to track policy adherence, measure compliance, and make data-driven decisions.
• 131 Risk Statements Developed Using ISO27000 Framework: they leveraged the ISO27000 framework to develop 131 risk statements, facilitating a standardized approach to risk identification and mitigation.
• Risk Assessment and Questionnaires Developed for Cybersecurity: ServiceNow GRC enabled them to develop comprehensive risk assessment methodologies and questionnaires specific to cybersecurity, strengthening their security posture.
• User Adaptation Rate Increased to 50%: The implementation of ServiceNow GRC resulted in a significant improvement in user adaptation, with 50% of employees effectively embracing the new system.
• 150+ Key Control Indicators Developed: They successfully implemented over 150 key control indicators, enabling proactive monitoring of critical control points and ensuring compliance with regulations.

The outcomes of the ServiceNow GRC implementation at our client’s place have been instrumental in reshaping their governance landscape and achieving significant improvements. By centralizing operations and leveraging the robust capabilities of ServiceNow GRC, they successfully addressed the challenges they faced. The development and implementation of policies, controls, and risk assessments across multiple departments and business units have fostered a culture of accountability and ownership. The availability of real-time dashboards, metrics, and reporting functionalities has provided stakeholders with enhanced visibility into policy compliance, risk status, and overall GRC performance. The automation of approval processes, along with reminders and tracking mechanisms, has streamlined operations and eliminated the need for manual reporting.

These outcomes have enabled our client to proactively manage risks, ensure compliance with industry regulations, and optimize their operational efficiency. The successful implementation of ServiceNow GRC has positioned them as a trailblazer in the transportation and logistics industry, showcasing their commitment to robust governance practices and setting the stage for sustained success.

Conclusion:

Our client’s implementation of ServiceNow GRC has revolutionized their GRC landscape, addressing the challenges they faced and delivering remarkable outcomes. The centralization of operations, enhanced policy management, improved accountability, and automation of processes have empowered them to achieve compliance, mitigate risks, and optimize operational efficiency.

The adoption of ServiceNow GRC has transformed their policies into dynamic assets, readily accessible through the ServiceNow service portal, and supported by automated approval processes, associated risks, and links to relevant regulations. With streamlined processes and embedded activities, they can now track and document all GRC activities, eliminating the need to remember tasks and enhancing their governance practices. Overall, the successful implementation of ServiceNow GRC has positioned them as a leader in the transportation and logistics industry, setting a benchmark for efficient and effective GRC practices.