Internal auditors play the critical role of being the third line of defense. When risk owners and management do not identify risk or adequately mitigate the risk, it is imperative for the internal auditors to provide independent and objective insight on risk. The audit management solutions market caters to this need by automating internal audit operations through its primary and secondary offerings. Audit management solutions help manage the complexity of the auditor's role, not the organization's risk.
Gartner defines governance, risk and compliance (GRC) tools as tools designed to support a holistic enterprise risk management (ERM) process, encompassing risk identification, assessment, mitigation, monitoring and reporting. These tools enable ERM teams to create a unified view of top enterprise risks, facilitating coordination across first- and second-line teams (e.g., corporate compliance) and partnering with internal audit on aligned assurance. GRC tools empower leaders to automate, manage and report on enterprise-level risks comprehensively. These tools facilitate the risk assessment process, enable workflow automation and streamline information exchange among leaders and first-line risk owners, enhancing the identification, assessment and communication of top enterprise risks. GRC solutions also support decision making through data visualization, reports and dashboards, offering insights for executives and the board, and integrating with other risk management technologies to provide a comprehensive risk view. Increasingly, GRC tools incorporate AI capabilities for advanced automation, including risk score validation, recommended controls and risk quantification.
Gartner defines IT vendor risk management (IT VRM) as the discipline of addressing the residual risk that businesses and governments face when working with external service providers, IT vendors and related third parties. The scope typically addresses risks related to data protection, business continuity, security and other risk domains as relevant to laws, regulation and industry practices.
Gartner defines Integrated risk management (IRM) as the combined technology, processes and data that serves to fulfill the objective of enabling the simplification, automation and integration of strategic, operational and IT risk management across an organization.
Internal controls software is designed to help organizations implement, monitor, and manage their internal control systems. These systems are essential for ensuring the accuracy of financial reporting, compliance with regulatory requirements, and the prevention of fraud. The software typically includes features such as risk assessment, control activities, continuous monitoring, automated audit trails, compliance management, and detailed reporting and analytics. By streamlining these processes, internal controls software enhances operational efficiency, ensures adherence to regulatory requirements, and provides a robust framework for governance and risk management.