2-dimensional minkowski planes and desarguesian derived by Steinke G.F.

By Steinke G.F.

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Every well-run company — whether private or public — puts its own unique self-inflicted policies in place and makes sure that they are being followed. As times change, all of these measures must be updated. What caused the birth of GRC as an area of focus for companies and those who provide consulting services and software was a perfect storm of urgency about various issues. Consider the following elements of that perfect storm: ߜ In the wake of the go-go culture of the Internet investing boom of the late 1990s, massive, systematic fraud was revealed at major companies such as Enron, WorldCom, Adelphi, and others.

If the controls are manual, this means that someone must be doing a lot more work, Chapter 1: The ABCs of GRC which can drive up auditing and personnel costs (and the cost of doing business). Replacing manual controls with automated controls is one way to allow controls to be run more frequently — in some cases, continuously — without large additional costs. That way, if 1 in 100 transactions violates a control, an automated control will catch it every time without incurring the cost of checking the 99 transactions that did not violate the control.

In the wake of a failed audit, reporting requirements skyrocket. Controls, which are detailed reports of various types of activity that must be cross-checked for problems, may have to be run on a monthly or quarterly basis instead of annually. New controls are usually introduced. Other sorts of testing to discover problems will also usually result. The work related to all of this new activity must be staffed either from inside a company or by personnel from an auditing or consulting firm. Either way, costs rise.

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