The Compassion in Compliance: Would GRC exist without regulators?

If there were no regulators dealing out fines for non-compliance, would GRC exist?

In my opinion, Yes, GRC would exist without regulations, standards, and fines. Governance, risk management, and compliance are all in our nature. Often, people believe living creatures tend to have a basic selfishness that steers all of their decisions. This may be partially true, but what most overlook is the compassion that is also at the base of all human beings.

We have a part of our brain, the anterior insular cortex, which allows us to feel empathy. When we see someone endure pain, emotional or physical, we can practically feel the same pain and experience a sense of compassion for that person. With that said, it is in our DNA to try to protect ourselves AND each other from situations of high risk.

Story of a Pack of Deer: Scientists did a study on a pack of deer to discover what factors drive their decision-making when choosing when and where to drink water. The timing of when to go to the watering hole and the location of the watering hole were the basic decisions that had to be made. If they left too early, there was a chance the nourishment would not last long enough, but if they went too late, some of the weaker deer might get dehydrated. The location of the watering hole had to be considered as well because if it was too far, then there was a bigger chance of encountering a predator or leaving stragglers behind.

What the scientists found was extremely interesting and relatable to humans and GRC. You would think that the big, leader buck would make the final decision. Instead, what happened was multiple deer would point in a direction of a watering hole at certain times, but the herd did not leave until 51 percent of the deer pointed in the same direction. It was as if the deer were voting and taking into account all risk and danger involved until the majority agreed on a final decision. Only then did they make a move to a watering hole. Deer obviously do not have regulations or standards to abide by, but this just shows that species tend to have a way of governing, managing risk, and complying with group decisions that best fit the entire community.

Therefore, I think it is just part of the evolution of our beings to create the GRC space. We have the natural tendency to manage risk in our everyday situations and decisions. As we evolve, we strive to make things easier for ourselves, and this is where GRC technology comes in to play.

Who knows what the future holds for GRC? It is evolving fast, and it is only a matter of time before the majority of companies have turned their heads to the GRC watering hole. So whether you call it regulatory compliance software or risk management software – you’re going to need them both now or in the near future.

 

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