GRC buzzword and ERP trend

In just a year(2006), everyone is talking about GRC: Governance, Risk and Compliance in compliance world. ‘GRC’ consolidates everything that keeps company’s business and risks in control, to avoid potential financial loss because of regulations, operational risks, and even to address social and humanitarian issues.

Since Sarbanes Oxley Act, it is natural for internal auditing, risk management, ethics, corporate govenance to break the barriers. You see new job titles as chief compliance officer, director of GRC. As corporations are consolidating these functions, software vendors are making consolidated GRC platform to support all GRC related functions, user access control, IT control, process control, etc.. The main components are business process management and content management.

Among major ERP vendors, SAP is apparently a leader in GRC field with great vision. You can get some scoop from the blog:

http://www.redmonk.com/jgovernor/2007/05/23/sap-grocks-governance-risk-and-compliance-the-new-erp/ 

 SAP GRC also includes greenhouse emission management and corporate social responsibilities, which is good news for progressive thinking companies.

Oracle follows in late 2006 announcing GRC with similar marketing themes. 

The argument of consolidated GRC platform is that we should not have silos of individual functionalities. Major GRC vendors are offering the integrated solutions built on GRC platform.

If major ERP vendors are focusing on making a framework or platform, small vendors or consulting firms have a lot opportunities to fill in the blanks. For example, building data extractors, automatic process controls for different applications.

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