Yardstick assessment is used in governance, risk, and compliance (GRC) to measure an organization’s compliance level against predefined standards or benchmarks. It involves comparing an organization’s performance to an external standard or benchmark, such as industry standards, regulations, or best practices. The assessment provides an objective measure of an organization’s compliance status and identifies any gaps that need to be addressed to improve its compliance posture.
By comparing GRC practices with regulatory standards and best practices, yardstick assessments ensure that organizations remain compliant with applicable laws, regulations, and industry standards, thus reducing the risk of non-compliance penalties.
The assessment provides insights into how effectively an organization manages its risks. By identifying gaps in risk management practices, companies can adopt more robust strategies to prevent or mitigate potential risks.
By benchmarking against industry standards, organizations can optimize processes, streamline operations, and reduce inefficiencies in governance, risk, and compliance activities.
Yardstick assessments support strategic decision-making by giving management a clear picture of the organization’s GRC maturity. This enables informed decisions about resource allocation, process improvements, and long-term strategic goals.
The yardstick assessment is not a one-time activity. It encourages continuous monitoring and improvement, ensuring the organization keeps pace with evolving standards, regulations, and industry trends.
Choose the appropriate standards, frameworks, or benchmarks that align with your industry and regulatory environment. This could include international frameworks like ISO 31000 or industry-specific regulations like HIPAA or SOX.
Review your organization’s current GRC processes, policies, and controls to establish a baseline. Document existing practices and identify areas where there may be gaps or inefficiencies.
Use the yardstick (benchmarking) process to compare your current GRC practices to the chosen standards or frameworks. This could involve using tools, external audits, or expert consultations to identify discrepancies.
Conduct a gap analysis to determine where your organization’s practices fall short. Evaluate the potential impact of these gaps on compliance, risk, and governance objectives.
Based on the findings, create a detailed action plan to address the identified gaps. Prioritize actions based on the risk they pose to the organization’s operations and regulatory compliance.
Regularly reassess your GRC practices and track progress against the benchmarks. Improve processes to align your organization with the latest best practices and regulatory requirements.
A Yardstick Assessment is a key tool in GRC, helping organizations benchmark their practices against industry standards to identify gaps, improve compliance, and strengthen risk management. It supports developing robust GRC programs for long-term operational resilience and regulatory compliance.
Discover the immediate impact VComply can bring to your compliance program. Move beyond the limits of spreadsheets with a system of record designed for complete compliance management.
