How Does GRC in SAP Function?

Being the leader of a major company is not an easy job. A good leader has to face lots of responsibilities in order to keep the company and employees away from risks.

london, United Kingdom (prHWY.com) March 23, 2013 - We all dreamt at some point in our lives of being founders of a very successful company and we envy leaders of major companies around the world. But, has anyone ever thought about the responsibilities that derive from running such a business? People who think that running such a company is a piece of cake are completely wrong. However, there are multiple programs and applications that can facilitate leaders' work, enabling them to avoid future risks or problems. For example, GRC in SAP is a very helpful tool that enables companies to run better, irrespective of their field of activity.

First and foremost, there some clarifications should be made. The term GRC stands for Governance, Risk, and Compliance and it is used to describe the software that helps run the world of business. The aim of GRC is to establish the policies of the company and to control all its compliance obligations in order to help the company function proficiently. In plain language, GRC helps leaders do the things in the right way and prevent risky situations that may be harmful for their businesses. Some may think that GRC deals only with complying with the regulations for a specific period of time and that's it. Nowadays, its role has become more and more important because if you do not observe both the external and internal rules, you cannot function and, as a consequence, you do not exist in the business world.

Secondly, we should direct out attention towards GRC in SAP because, as it was mentioned previously, it is one of the best solutions in identifying violations of SAP authorizations to users from all around the world. SAP is very strict regarding its security and granting authorizations to customers as it does not want its image to be affected. It should be mentioned that GRC in SAP, or at least some parts of it are not relatively new. For example, the measures taken to prevent financial fraud are as old as SAP itself. Old parts of GRC refer directly to the fact that companies should make sure that all financial reports are correct and that money is not leaking out of them.

The latest parts of GRC concern management of risks, health and safety regulations or trade compliance.
There are many aspects which should be taken into consideration when having a business, especially a larger one, such as lists of companies that are prohibited to work with, global warming, efficient use of energy, environmental efforts and many others. Companies that do not comply with all these regulations are fined as well as companies that report unexpected bad news. All these are signs of poor risk management. A solution may be an internal audit. It is known to have an important role in any company's GRC operations. Moreover, its objective is to control operations and to improve them where needed. Also, it is helpful for the board to enable effectiveness of risk management control and all safety processes of their companies.

In the past, the term internal audit was used only with reference to financial and accounting issues. Nowadays, the field has been expanded to control evaluations and it is a key element of the governance process. Few people know that internal audit depends on a wide range of factors, such as legal requirements, competitors and expectations. Also, it has to be very flexible and to take into consideration the aims of the company and the requirements imposed by professional institutes. It is advisable for every company using SAP software to make an internal audit in order to establish if the applications provide effectiveness, if they completely satisfy their needs and which fields may need revising.


What is your position regarding SAP grc http://www.xpandion.com? Have you ever needed an internal audit http://www.xpandion.com for your company?

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