At this point, it’s common knowledge the CFO role has gone through a transformation. For those stragglers living under a rock, consider this your wake-up call: CFOs are no longer relegated to merely slashing costs to safeguard controls. Instead, they’re challenged with making more business decisions than ever before – including making sweeping changes to their governance, risk and compliance (GRC) practices.
To rise to the occasion, more and more CFOs are working to implement the “three lines of defense” framework, which tackles operational management, corporate risk and compliance oversight and internal audit, into their organizations. A recent Huffington Post article, authored by Thack Brown, explored the structure more in-depth and noted that while it has been successful it is by no means a silver bullet for CFO’s GRC responsibilities.
Why, you ask? Because it doesn’t begin to address the need for tools or directives. However, there is no need to fret. As Brown points out, most companies already have the ingredients to execute on the framework’s key points; it’s just a matter of integrating departments’ tools and data. Brown goes on to explain how organizations can optimize their three lines of defense, and I was especially excited to see the integration of technology solutions make the list.
CFOs are playing a bigger role in IT decisions because of tech solutions’ ability to drive high performance. There are a variety of technologies that help support the defense framework, but companies are struggling to incorporate them across the organization. As it stands, only 30 percent of organizations using these types of GRC dashboards and reporting platforms say they are fully integrated across the company. To solve for this, CFOs need to find next-gen technologies – like those found in Hubble – that pull live ERP data and provide access to real-time reporting, analytics, and planning.
CFOs can expect to see increasingly positive data quality results, and a more unified front, across the organization by adopting an integrated platform. Thus, strengthening the company’s overarching three lines of defense framework.