How BFSI is Fueling the Rise of GRC

The GRC market may be worth more than $64 billion in 7 years according to a report by the research firm Grand View Research. Unsurprisingly, BFSI is leading the charge. BFSI accounted for most GRC adoptions and implementations, followed by the telecom industry and the manufacturing industry. It is easy to see what is common in all these three industries – they are all undergoing scrutiny by regulatory bodies and are facing increasing regulatory burdens. The telecom industry is reckoning with strengthening data privacy regulation and the manufacturing industry is feeling pressure to be friendlier to the environment.

The BFSI industry and GRC

It will come as no surprise to anyone that works in the BFSI industry is leading the charge in GRC because of how heavily regulated it is. It must be noted that governments do not put undue pressure on the BFSI industry because they don’t understand its importance – they regulate the industry because they know precisely how important it is.

The reason the BFSI industry is so important is because it is the lifeblood of every other industry. The modern economy is powered by the products and services that are provided by the BFSI industry. That is why, if there is a problem in the BFSI industry, it affects everyone instead of simply affecting the industry itself. The 2008 financial crisis is the most recent major example we have. The problems in the industry caused a cascading crisis throughout the world. Businesses that were not in the BFSI industry in anyway also incurred heavy losses and many had to be shutdown. They felt the effects because while they may not be in the BFSI sector, they were dependent on it.

The lack of investments and available credit options caused by a dip in the BFSI industry can slow down sales and business expansions across the globe. Thus, the industry is heavily regulated to keep things running smoothly, which is why the BFSI sector focuses so much on GRC. While governance, risk, and compliance are important for every industry, they are vital for BFSI.

The BFSI sector has always pioneered technology

Another reason it is unsurprising that the BFSI sector is spearheading the adoption of GRC is that the sector has always been at the forefront of technology. The first computer made for business purposes was LEO. It was created in 1951. The first program that was sold on it was a valuation and computing solution and the computer was marketed towards the BFSI sector by showing how great it was at valuations and calculations. The sector remained a pioneer in the industry for the coming decades. Financial analysts and accountants were some of the first professionals in the world that used computers for most of their work.

The BFSI sector is based on numbers and valuations – everything depends on making the right investments and the valuation of the investments is completely handled by computers. Predictions, business models, analysis, and many more functions are completely dependent on computing. The industry’s job is to ensure profitably investments which is why the sector is adopting GRC so enthusiastically; they have run the numbers and it is clear to them that GRC is an investment worth making.

The adoption of GRC is not the only thing that is fueling this change – the changes and developments in GRC are also flaring its popularity. GRC has become easily accessible for organizations of all sizes which has considerably grown its potential customer base. GRC technology was primarily being used by only the major players in the industry due to its prohibitively expensive cost. The rise of cloud-based solutions has eliminated these factors. Businesses do not have to invest millions of dollars implementing solutions – they can simply get a subscription to a cloud GRC solution.

If you are in the BFSI sector and want to know how GRC solutions can improve the management and lower the compliance costs of your organization, get in touch with our team. Our team will demo the solution and start your free trial of the solution. They will also show you how GRC solutions increase efficiency and decrease costs for businesses.

About the company

360factors, Inc. (Austin, TX) helps companies improve business performance by reducing risk and ensuring compliance. Predict360, its flagship software product, vertically integrates regulations and requirements, policies and procedures management, risks and controls, audit management and inspections, and on-line training and qualifications, in a single cloud-based platform based on artificial intelligence.

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