Understanding Third Party GRC Maturity: Agile Stage

September 23rd, 2019 Michael Rasmussen Reading Time: 4 minutes
Blog - Understanding Third Party GRC Maturity: Agile Stage

A haphazard department- and document-centric approach for third party GRC compounds the problem and does not solve it. It is time for organizations to step back and mature their third-party GRC approaches with a cross-functional and coordinated strategy and team to define and govern third party relationships. Organizations need to mature their third-party governance with an integrated strategy, process, and architecture to manage the ecosystem of third-party relationships with real-time information about third-party performance, risk, and compliance, as well as how it impacts the organization.
GRC 20/20 has developed the Third Party GRC Maturity Model to articulate maturity in the third-party GRC processes and provide organizations with a roadmap to support acceleration through their maturity journey.

There are five stages to the model:

  1. Ad Hoc 
  2. Fragmented 
  3. Defined 
  4. Integrated 
  5. Agile

Today we look at Stage 5, the Agile level of third-party GRC.

At the Agile Maturity stage, the organization has completely moved to an integrated approach to third-party GRC across the business that includes an understanding of risk and compliance in context of performance and objectives in third-party relationships. Consistent core third-party GRC processes span the entire organization and its geographies. The organization benefits from consistent, relevant, and harmonized processes for third-party governance with minimal overhead.

The Agile Maturity is where most organizations will find the greatest balance in collaborative third-party governance and oversight. It allows for some department/business function autonomy where needed, but focuses on a common governance model and architecture that the various groups in third-party governance participate in. The Agile stage increases the ability to connect, understand, analyze, and monitor interrelationships and underlying patterns of performance, risk, and compliance across third-`party relationships – as it allows different business functions to be focused on their areas while reporting into a common governance framework and architecture. Different functions participate in third-party management with a focus on coordination and collaboration through a common core architecture that integrates and plays well with other systems.

Characteristics of the Agile Maturity stage are:

Key elements that identify an organization is at the Agile stage are:

Organizations in the Agile Maturity stage answer many of the following questions affirmatively:

After reflecting on these points, it is time to next ask: is your organization at the Agile stage of Third Party GRC Maturity?

Aravo, leveraging the GRC 20/20’s Third Party GRC Maturity Model: A New Paradigm in Governing Third Party Relationships research report, has built the Third-Party Risk Management Maturity Calculator that takes this deeper and provides insight on how to improve your organization’s maturity and approach.

Maturity Calculator - Map your journey

Michael Rasmussen

The GRC Pundit & Analyst

Michael Rasmussen is an internationally recognized pundit on governance, risk management, and compliance (GRC) – with specific expertise on the topics of enterprise GRC, GRC technology, corporate compliance, and policy management.  With 30+ years of experience, Michael helps organizations improve GRC processes, design and implement GRC architecture, and select technologies that are effective, efficient, and agile.  He is a sought-after keynote speaker, author, and advisor and is noted as the “Father of GRC” — being the first to define and model the GRC market in February 2002 while at Forrester.

Michael has contributed to U.S. Congressional reports and committees, and currently serves on the Leadership Council of the OCEG and chairs the OCEG Technology Council, OCEG Policy Management Group, and the OCEG GRC Architect Group.

Michael is quoted extensively in the press and is respected for his commentary on broadcast news channels. He is an Honorary Life Member and Global Ambassador of Risk Management with The Institute of Risk Management for his contributions to risk management and GRC. Treasury & Risk recognized Michael as one of the 100 most influential people in finance with specific accolades noting his work in “Governance and Compliance: Saving the Planet and the Corporation” and as a “Rising Star in Rocky Times: Corporate America’s Outstanding Executives.”

Prior to founding GRC 20/20 Research, Michael was a Vice-President and  ’Top Analyst’ at Forrester Research, Inc. Before Forrester, he led the risk/compliance consulting practice at a professional services firm, and prior to that has specific experience managing compliance and risk within commercial organizations.

Michael’s educational experience consists of a Juris Doctorate in law and a Bachelor of Science in Business. Michael has a Master in Church History with a focus on Medieval Church History from Trinity Evangelical Divinity School, and is pursuing a Masters in Pastoral Ministry at Nashotah House.  He is a GRCP (GRC Professional), PMP (Policy Management Professional), CCEP (Certified Compliance and Ethic Professional), and a CISSP (Certified Information Systems Security Professional). OCEG has recognized him as an OCEG Fellow for his contributions and advancement of GRC practices around the world.

The GRC Pundit & Analyst

Michael Rasmussen is an internationally recognized pundit on governance, risk management, and compliance (GRC) – with specific expertise on the topics of enterprise GRC, GRC technology, corporate compliance, and policy management.  With 30+ years of experience, Michael helps organizations improve GRC processes, design and implement GRC architecture, and select technologies that are effective, efficient, and agile.

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