Aligning Technology and Compliance for Resilience
Most business leaders agree that technology and compliance teams must operate in tandem or in a tight partnership. When compliance and technology teams operate in silos, organizations expose themselves to significant risks, including data breaches, regulatory penalties, and reputational damage.
The High Cost of Misalignment
A striking example of the consequences of misalignment is the 2023 MOVEit breach, which affected hundreds of organizations across industries. Attackers exploited a vulnerability in a widely used file-transfer tool, but the real issue wasn’t just technical ,— it was organizational. Many companies lacked alignment between their IT and compliance teams, delaying critical patching and breach notifications. The result: massive data exposure, regulatory scrutiny, and a loss of public trust that rippled across the supply chain.
Financially, the stakes are equally high. The average cost of non-compliance has risen to approximately $14.82 million, more than double the cost of maintaining compliance. This includes direct financial losses, reputational harm, and operational disruptions.
A Holistic Approach to Risk Management
To effectively manage and mitigate risks, organizations must adopt a comprehensive risk management program that integrates the following components:
- Risk Identification: Systematically identifying potential risks across all areas of the organization.
- Risk Assessment: Evaluating the likelihood and impact of identified risks.
- Risk Treatment: Implementing strategies to mitigate, transfer, accept, or avoid risks.
- Third-Party Risk Management: Assessing and managing risks associated with external partners and vendors.
- Exposure Management: Monitoring and controlling the organization's exposure to various risks.
- People-Centric Risk Management: Addressing human factors, including training and awareness, to reduce risk.
A unified approach ensures that all aspects of risk are considered and managed collaboratively, leading to more effective risk mitigation.
Technology and Compliance Integration
Organizations are increasingly recognizing the importance of integrating technology and compliance functions.
For instance, the 2023 State of Risk & Compliance Report by Navex revealed that 27% of organizations apply the same risk management approach to all third parties, regardless of risk level. This indicates a need for more tailored and integrated risk management strategies.
Furthermore, the Global Cybersecurity Outlook 2024 report by the World Economic Forum found that 98% of organizations report having at least one third-party partner that has suffered a data breach in the last two years. This highlights the interconnected nature of modern business operations and the necessity for integrated risk management practices.
Refoundry Wingman: Bridging the Gap Between Technology and Compliance
Refoundry’s Wingman service stands out as a solution that harmonizes technology and compliance efforts. By providing a platform that integrates governance, risk, and compliance (GRC) functionalities, Wingman enables organizations to align their technological initiatives with regulatory requirements seamlessly.
Wingman’s approach includes:
- Unified Risk Management: Combining risk identification, assessment, and treatment into a cohesive framework.
- Automated Compliance Monitoring: Utilizing technology to continuously monitor and ensure compliance with regulations.
- Third-Party Risk Assessment: Evaluating and managing risks associated with external partners through integrated tools.
- People-Centric Features: Incorporating training and awareness modules to address human factors in risk management.
By fostering collaboration between technology and compliance teams, Wingman helps organizations navigate the complexities of modern risk landscapes, ensuring both innovation and regulatory adherence.
Conclusion
The integration of compliance and technology is a necessity in today’s risk-laden business environment. Organizations that bridge the gap between these functions are better positioned to manage risks effectively, comply with regulations, and maintain their reputations.
Solutions like Wingman exemplify how technology can facilitate this integration, providing a roadmap for organizations striving for resilience and compliance in an interconnected world.
