Calculating the ROI of GRC software. - · PDF fileGRC initiatives, but extend to all employees that interact with the software. The following table breaks down the additional benefits

Calculating the ROI of GRC software.

Table of Contents.

1

Executive Summary. 2

The Importance of GRC. 3

ROI Analysis. 4

Implementation-Based ROI. 5

Procurement-Based ROI. 9

ROI Calculation. 12

Conclusion. 13

About Us. 14

Works Cited. 15

Appendix I. 16

©2015 Resolver Inc. All Rights Reserved.

Executive Summary. Governance, Risk and Compliance (GRC) software can provide significant value to your company. Unfortunately, because the benefits are difficult to quantify, so is making the case to implement GRC software. Having a quantifiable Return on Investment (ROI) makes it easier to build a case for upper management, who ultimately makes the final decision on implementing GRC software and which GRC platform to use.

This case bases all calculations for ROI on a sample client: a large global organization that

implements a comprehensive GRC platform for their Regulatory Compliance, SOX/ICFR, Issue

Tracking and Remediation, Risk Management and Audit programs. To best understand the ROI of

GRC software, this case outlines two distinct types of ROI:

1. “Implementation-Based ROI” – The benefits of a GRC software solution and the gains realized

by the business as result of those benefits.

2. “Procurement-Based ROI” – The efficiency gain resulting from using an Agile Procurement

Process.

All quantifiable data and statistical information related to the benefits of GRC software was found through primary and secondary research. Primary research includes our experiences with clients and the research we have done on the benefits specific to our GRC platform. Secondary research includes reports and studies from Harvard Business Review, Forrester, Michael Rasmussen, Ernst & Young and ASQ. For a complete list of sources, please see the “Works Cited” section at the end of this case

Methodology.

Although the benefits of GRC software are widely known, there is little quantifiable evidence of

these benefits to procure and implement it. Calculating the ROI of a GRC platform for your

organization may help your organization’s decision-makers fully understand the extent to which a

GRC program can benefit your company.

Our analysis provides a foundation for creating your own business case for GRC software, as the

scale of your organization and the extent of your implementation may result in a different ROI

calculation than presented in our case. We suggest reviewing the sample monetary benefits and

using our framework as a template to calculate your own ROI percentage.

Results.Our findings show that the total ROI, a combination of implementation-based and procurement-

based benefits, is calculated at 637% of the total cost of licensing and implementing a GRC

solution. Alone, implementation-based ROI is calculated at 389% of total cost, while

procurement-based ROI is calculated at 346% of total costs.

Conclusion.

2©2015 Resolver Inc. All Rights Reserved.

As business environments become more complex at an increasing rate, it’s necessary for companies to be able to stay agile. Regulatory changes, globalization, disruptive technologies, cybersecurity, and personnel changes are just some of the challenges that companies must deal with on an ongoing basis in order to be successful.

Using a GRC software solution can continually empower your organization to anticipate, respond and adapt to risk. The result is effective and efficient GRC, which as the next section explains, can be quantified to better understand the benefit to your organization.

“Following the financial collapse in 2008, with product recalls, health and safety disasters,

security breaches, and other disastrous risk

events in the mix, we've reached an

environment where organizations without

formal compliance and risk management

functions may fairly be considered

irresponsible.”

“The compliance function has garnered even more attention,

with colossal new regulations causing

difficulties for companies in more

industries around the world. In fact, when

Forrester asked more than 1,800 business

decision-makers from enterprises around the world to list their most important concern, a

full 25% of respondents said increasing

regulations is a critical issue.”

(Forrester 2012)

of companies are concerned with their ability to adapt to changing regulatory requirements and the flexibility of their current system to adapt to these changes. (Ernst & Young 2014)

78%

The Importance of GRC.


ROI Analysis.GRC implementations vary considerably across industries and businesses, but there are agreed

commonalities in the value achieved.

We have chosen to base our analysis on a large global corporation. Outlined below are key size

metrics, which provide a context to the savings figures outlined in the ROI analysis:

Area of operation Global

Number of employees 60,000

Annual revenue $35 billion

Total assets $18 billion

Business units 40 units

(2-5 processes/business unit)

Controls per process 8-10

Full Time Employee (FTE) Rate

(fully loaded cost includes benefits and other resources

required for FTE employment).

$120,000 salary* or $60/hour**

This business case provides a summary of all benefits realized using a comprehensive, integrated

GRC platform. When you partner with Resolver, you get access to a comprehensive, integrated and

readily expandable platform: GRC Cloud. Thus, we chose to base our analysis on the benefits of

using a software like ours. Further, we have found that a more comprehensive GRC platform

provides a higher ROI.

It should be noted, however, that implementing one GRC area can provide similar benefits but at a

smaller scale. In fact, many of our clients begin by implementing one area of GRC, such as Internal

Control, and then expand to implement other programs as they realize the value of a GRC platform

and as their business needs grow.

In this case, our sample client’s GRC platform supports the following programs: Compliance,

Internal Control, Issue Management, Risk Management and Audit.

*Salaries can vary but the salary number used in this business case is conservative based on comparable ROI studies involving GRC solutions.**$120,000 annual salary converted to an hourly cost


*Estimated hourly cost for a non-manager plant employee

Implementation-Based ROI.

1.1 Extended leverage beyond core users.A more efficient tool’s benefits are not limited to the employees administering the organization’s GRC initiatives, but extend to all employees that interact with the software. The following table breaks down the additional benefits of GRC software in the context of a global compliance employee training initiative:

Number of employees required to attend

training.

Estimated at 15,000 employees.

Time saved by using an online repository with

individual user login access instead of a manual

process. The result being employees are able

to complete training at any time by submitting

their work online through a single click.

0.5 hours saved per employee (per training

initiative)

Time Saved (hours) = 15,000 X 0.5

= 7,500 hours

Savings ($) as function of time saved (hours)

and the cost ($) of a fully loaded plant

employee at $30/hour*

Savings ($) = 7,500 X $30

= $225,000

Time saved, at 20 hours per training initiative,

across 300 managers. This benefit is a result of

identifying and enforcing gaps (non-compliant

employees) through reporting and

notifications in the system.

The savings to the company is calculated as a

function of time saved (hours) and an hourly

rate of a manager at $60/hour.

Time Saved (hours) = 20 hours x 300 managers

= 6000 hours

Savings ($) = 6,000hrs X $60/hour

= $360K

Total Employee Time Saved 7,500 plant employee hours

6,000 manager hours

Total Efficiency Savings On Worker Compliance

Program

$225,000 + $ $360,000 =

$585,000

Implementation-based ROI covers the benefits of a GRC software solution and the gains realized by the business as a result of those benefits. Implementation-based ROI is broken down into six areas. Each area explains the benefit and provides the full calculations of the quantifiable benefits.


Number of processes within the company 100 processes

Risk/Control framework change occurs and the following three areas of manual documentation must be updated:

• Process Risk & Control Matrix (4hrs)• Issue Log (4hrs)• Testing Workpaper (4hrs)

Time saved for each process is the summation of these three areas.

Savings ($) = total time saved using a central repository x number of processes x FTE rate

Time Saved (hours) = 4 + 4 + 4 = 12 hours

Savings ($) = 12 hours x 100 processes x $60/hour = $72,000

Typical number of changes to framework

risks/controls during the year per process

5 changes

Total Employee Time Saved Time Saved (hours) = 12 hours x 100 processes x 5 framework changes=6,000 hours

Total Savings Through Efficient ICFR Framework

Management

Savings ($) = 6,000 hours x $60/hour= $360,000

By organizing Risks and Controls centrally, it is

possible to link controls that span multiple risks

across different business functions. The result is a

lean list of controls, which requires less time to

document, maintain, execute and test.

Number of controls within the company 2,000 controls

Control testing overlap identification 30%

Amount of time required to document,

maintain, execute and test

8 hours per control

Time saved on control assessments Time Saved (hours) = 600 controls x 8 hours

testing

= 4,800 hours

Total Employee Time Saved 4,800 hours

Control assessments efficiency gained 4,800 hours x $60 = $288,000

1.3 Control rationalization.

By eliminating disconnected repositories that previously handled ICFR/SOX processes, the client is

now able to make changes to an existing risk or control and instantly see the changes propagate

throughout the system where desired. The savings resulting from the elimination of

redundant/repetitive work is illustrated below:

1.2 Elimination of duplicate effort.


Data aggregation, analytics and reporting is where your company can realize the largest efficiency

improvement. Without the use of a central database and reporting tools, producing reports for

management and board level audiences is an extremely arduous and time consuming process.

Using a central database and advanced analytics and reporting tools eliminates susceptibility to

error and omission during manual data aggregation and enables you to generate accurate,

insightful and actionable reports in seconds.

Auditing functions previously handled exclusively by external sources can now be completed by

internal resources. Savings are also realized in regulatory compliance through the time saved in

producing the required documentation.

Access control review external audit hours 500 hours

Configuration control review external audit hours 500 hours

Standard external audit hourly cost $350/hour

Scope of work handled by the external auditors prior to a

GRC solution

100%

Access control review audit time savings 67%

Configuration control review audit time savings 65%

Total savings as a result of reduced work required by the

external auditors. As a function, total savings is made up of

the costs saved from the above audit time savings.

Total Savings ($) = 0.67x500 +

0.65x500

= 117,250 + 113,750

= $231,000

Total billable hours saved 335 + 325 = 660 hours

Total savings on external audit cost $231,000

1.4 Reduction of external resource requirements.

1.5 Efficient data aggregation, analysis and reporting.


Combined, an issue tracking environment and escalation workflow engine result in issues being

resolved quicker. Further, a central repository prevents the duplication of work by addressing

duplicate issues tracked in the system

Cost of a Full Time Employee (FTE)

responsible for issue tracking and issue

remediation

1 FTE at $120,000/year (fully loaded employee

cost)

Issue remediation savings due to minimal

duplication in issue tracking is calculated at

30%.

Time Saved (hours) = 2000 hours per year (38.5

hours per week) x 0.3

= 600 hours

Total Employee Time Saved 600 hours

Annual savings as a result of time savings $36,000

1.6 Optimized issue tracking and resolution.

Busy Employee Clicks Link in Email

Easily Inputs Data

Done

Number of reports generated per year Total reports (#) = 1 (annual) + 4 (quarterly) + 12

(monthly) + 25 (ad hoc reporting requests)

= 42 reports

Time to prepare a single report before GRC

solution

40 hours

Functions requiring reports Functions (#) = Compliance + ICFR/SOX + Issue

Tracking + Audit + Risk

= 5 functions

Reporting generation efficiency achieved is

calculated at 88% (as seen in our clients).

Time saved (hours) = number of reports x hours

per report x number of functions x efficiency

improvement (%)

= 42 x 40 x 5 x 0.88

= 8400 hours x 0.88

= 7392 hours

Total Employee Time Saved 7392 hours

Report generation cost savings per year $443,520


Procurement-Based ROI.The “Agile Software Selection Approach” developed by Forrester® allows clients to minimize costs from the moment the need is identified all the way through to the GRC solution being fully implemented. The following key concepts govern the Agile Procurement Approach:

• Cost-effectiveness: Procurement costs minimization by not issuing an RFP. • Visibility across vendors: Innovative vendors are encouraged to showcase their

groundbreaking solutions• Configurability: Focus is shifted from rigid RFP requirements and replaced by an

emphasis of the system possessing a robust configuration layer at the end user level• Risk Mitigation: Mitigating risk of unsuitable vendor selection during the procurement

process via: • Proof of concept demonstrations• Pilot programs and soft launches

• Adaptability: Ease of expansion to handle new functionality within the realm of GRC (non-modular framework)

The Agile Procurement approach breaks down the process into stages. The concepts noted above are inherent in each of the stages and are the basis for the benefits derived. This section outlines the applicable costs and savings realized in each stage of a typical procurement process, however a more in-depth analysis and explanation of the financial numbers can be found in the “Procurement Cost Analysis Diagram” in Appendix I.

Resolver’s support of the “Agile Software Selection Approach,” offers a more efficient software procurement approach when compared the onerous nature of a traditional RFP procurement process.

2.1 Cost-effective procurement.

Total time needed to complete the RFP

procurement process

(This excludes any time it takes to implement

the solution)

12 to 36 months

(The duration range is dictated by the size of the

purchasing entity)

Total costs associated with a traditional RFP

procurement methodology

(This cost does not include and

licensing/configuration costs for the selected

solution)

$300,000 to $440,000

(The range depends on the size and complexity

of the purchasing entity)

Applicable range to our case study Our client is a multi-national corporation with

over 100 thousand employees, therefore the

complexity and size of the organization dictates

the top level of the procurement cost range of

$440,000.

Total cost savings as a result of using the

Agile Software Selection Approach $440,000

***See Appendix I for a detailed breakdown of the costs


Most GRC solutions are modular, meaning that expansion into new areas of GRC requires the

purchase of additional modules. Choosing a non-modular solution, like GRC Cloud, provides the

client with the necessary features to expand into any additional area of GRC without needing to

purchase and implement additional software. The only costs of expansion are additional licenses

for new users and cost of configuration.

Initial implementation ICFR/SOX

Strategic decision made to manage a new

aspect of GRC

Client would like to configure the system to

handle Compliance in addition to SOX

Extra software functionality purchased and

implemented through a new vendor

$100,000 to $500,000

Size of the enterprise dictates the maximum cost

of $500,000

Cloud configuration cost and extra licenses $25,000 to $100,000

Size of the enterprise, again, dictates the

maximum cost of $100,000

Savings from not purchasing additional

modules to handle new GRC area

Savings ($) = $500,000-$100,000

= $400,000

2.2 Ease of expansion into new GRC areas.

10



The traditional RFP procurement process might discourage the right vendor from participating. This can result in the buyer picking from a list of inadequate software vendors.

A traditional RFP procurement process can discourage vendors for the following reasons: • A very high cost of sales and time commitment for the prospective vendors• An internal policy where the VP of Sales does not accept RFP bids• The bandwidth or resources are not available and the vendor declines participation• The perception of low odds, despite having the qualifications and available resources

to respond to an RFP

The nature of the Agile Software Selection Approach removes the possibility of qualified vendors opting out of the procurement process.

The largest reason for issuing an RFP is ensuring the solution meets the needs of the buyer. To mitigate the sunk costs of a solution not meeting the needs of the buyer after the vendor has been chosen, the client can use pilot programs or soft launches. By avoiding the costly traditional RFP procurement process and starting with pilot programs/soft launches the following sunk costs can be avoided should the solution not perform as expected.

Cost of failed RFP procurement process $440,000

Licensing fees and FULL

implementation/configuration

$100,000 to $500,000

Cost of failed pilot program/soft launch

(Agile Software Selection Approach)

$50,000 to $100,000

Total sunk cost of abandoning implemented

solution

Total sunk cost ($) = $440,000 + $500,000 -

$100,000

= $840,000

2.3 Vendor encouragement.

***See Appendix I for a detailed breakdown of the costs*See Bombardier case study

A solution that allows for robust end-user configuration mitigates any emerging requirements

not accounted for in the procurement process. A traditional RFP process attempts to capture a

complete list of current and anticipated future requirements, but in reality there are often factors

that have not been documented or properly communicated. It is also very common for business

needs to evolve by the time the lengthy procurement process has completed. The ability for an

end user to configure system workflows and attributes related to the data objects are key factors

why a GRC solution should be aligned with the business needs of the client. Leveraging a study

conducted by Bombardier, we estimate the typical cost to re-work a very rigid software solution

for our example organization..

GRC software total costs for a global enterprise

(licenses and implementation)

$500,000

Costs associated with scope changes during implementation Cost ($) = $500,000 x 0.1*

= $50,000

Cost savings by the application administrator modifying the

application at the configuration layer $50,000

2.4 End-user configurability and flexibility.

11



ROI Calculation.ROI Category # Benefit Savings

Implementation Based ROI 1.1 Extended leverage beyond core users. $585,000

Implementation Based ROI 1.2 Elimination of duplicate effort. $360,000

Implementation Based ROI 1.3 Control rationalization. $288,000

Implementation Based ROI 1.4 Reduction of external resource

requirements

$231,000

Implementation Based ROI 1.5 Efficient data aggregation, analysis and

reporting.

$443,520

Implementation Based ROI 1.6 Optimized issue tracking and resolution. $36,000

Procurement Based ROI 2.1 Cost-effective procurement. $440,000

Procurement Based ROI 2.2 Ease of expansion into new GRC areas. $400,000

Procurement Based ROI 2.3 Vendor encouragement. $840,000

Procurement Based ROI 2.4 End-user configurability and flexibility. $50,000

Total Benefit $3,673,520*All financial benefits are fully realized over a period of 3 years.**Cost savings are calculated using a conservative Full Time Employee (FTE) rate of $120,000 salary or $60.00 per hour

Total costs associated with GRC Solution

(licensing and implementation)

$500,000

Implementation Based Benefits $1,943,520

Procurement Based Benefits $1,730,000

Total Benefits $3,673,520

Return on Investment (ROI) 634 %

Payback Period 1 to 2 years

Time to Full ROI Realization 3 years

ROI as a percent(%) of total costs.


Conclusion.For a large global organization that implements a comprehensive GRC platform across their organization their Return on Investment (ROI), a combination of implementation-based benefits and procurement-based benefits, is calculated at 634% of their total cost of licensing and implementing a GRC solution.

Implementation-based ROI refers to the benefits of a GRC software solution and the gains realized by this business as a result of those benefits. Implementation-based ROI was broken down into the following six sub-categories: extended leverage beyond core users, elimination of duplicate efforts, control rationalization, reduction of external resource requirements, efficient data aggregation, analysis and reporting, and optimized issue tracking and resolution. The total implementation-based ROI for our example client was $1,943,520, or 389% of total costs.

Procurement-based ROI refers to the efficiencies gained from an Agile Procurement Process. Similar to implementation-based ROI, procurement-based ROI is broken down into the following four sub-categories: cost-effective procurement, ease of expansion into new GRC areas, vendor encouragement and end-user configurability. The total procurement-based ROI for our example client was $1,730,000, or 346% of total costs.

While there are other resources available that describe the qualitative benefits of GRC software, this business case focused exclusively on formulating quantitative figures that outline a tangible monetary benefit to make the case for implementing GRC software in your organization.

It is important to note that the scale of your organization and the extent of the implementation and adoption may result in different ROI results than what was outlined in our business case. These numbers are meant to serve as a baseline and the transparent benefit calculation can be leveraged to create your own calculations. For example, if your organization is smaller than the multi-national organization in our example, your benefit figures as well as your costs will also be smaller.

Resolver often recommends starting out with a specific area, and once implemented moving to the next area. We often borrow the phrase:

“Every journey starts with a single step.” – Confucius

Starting out and focusing on one area of GRC greatly helps the success of your program as a whole and increases adoptability with each implementation success. Resolver’s innovative use of a non-modular and highly configurable architecture makes this process painless and very cost effective.


Resolver is a global leader in audit, risk and compliance software with more than 400 clients across 40 countries. Our clients include

some of the world’s most recognizable brands, government agencies and 9 of the top 10 global accounting firms.

Who We Are.

What We Believe.At Resolver, we believe that audit, risk and compliance drive

performance. We believe that if done effectively, audit, risk and compliance help you operate legally and ethically, minimize fraud and promote efficiency. They align disparate organizational units and focus them on what matters most: your strategic objectives.

They protect your company’s assets, employees and stakeholders. Most importantly, they enable value creation today, while mitigating

the problems of tomorrow.

What We Do.For over a decade, Resolver has helped businesses drive

performance through Intelligent Audit, Risk & Compliance software. Our platform helps you identify the biggest risks to success and

coordinate assurance, compliance and risk activities. It provides oversight and transparency, and promotes accountability. It delivers

a reliable, secure system of record, enabling you to know what’s working and what’s not, where your gaps are, and what you are doing about them. It has the right combination of simplicity and

complexity to enable your business at any stage of maturity to grow, expand and reach your full potential.


resolverGRC.com | [email protected] | 1-888-891-5500

Contact Us.

Works Cited.Claude Y. Laporte. (2012). Measuring the Cost of Software Quality of a Large Software Project

at Bombardier Transportation: A Case Study. Retrieved on February, 2015, from

http://www.etsmtl.ca/Professeurs/claporte/documents/publications/Project-at-bombardier-

transportation_SQP_June-2012.pdf

Ernst & Young. (2014). Improve your business performance: Transform your governance, risk

and compliance program. Retrieved February, 2015, from

http://www.ey.com/Publication/vwLUAssets/EY-improve-your-business-performance/$FILE/EY-

transform-your-grc-program.pdf

Forrester. (2014). Build the Business Case for GRC. Retrieved February, 2015, from

http://www.forrester.com/Build+The+Business+Case+For+A+GRC+Platform/fulltext/-/E-

RES56677?objectid=RES56677

Harvard Business School. (2013). HBR Guide to Building Your Business Case. Retrieved February,

2015, from http://hbr.org/product/hbr-guide-to-building-your-business-case-ebook-

tools/an/16980E-KND-ENG

Michael Rasmussen. (2011). The ROI on GRC. Retrieved February, 2015, from

http://www.fiercecfo.com/story/big-issue-roi-grc/2011-10-27

Paul D. Hamerman. (2014). Choose Your Business Applications Using An Agile Software Selection

Approach. Retrieved February, 2015, from

http://www.forrester.com/Rightsource+Your+Business+Applications+Using+An+Agile+Software

+Selection+Approach/fulltext/-/E-RES88121


http://www.etsmtl.ca/Professeurs/claporte/documents/publications/Project-at-bombardier-transportation_SQP_June-2012.pdf

http://www.ey.com/Publication/vwLUAssets/EY-improve-your-business-performance/$FILE/EY-transform-your-grc-program.pdf

http://www.forrester.com/Build+The+Business+Case+For+A+GRC+Platform/fulltext/-/E-RES56677?objectid=RES56677

http://hbr.org/product/hbr-guide-to-building-your-business-case-ebook-tools/an/16980E-KND-ENG

http://www.fiercecfo.com/story/big-issue-roi-grc/2011-10-27

http://www.forrester.com/Rightsource+Your+Business+Applications+Using+An+Agile+Software+Selection+Approach/fulltext/-/E-RES88121

Appendix I.Phase Vendo

rsWorkflow Cost Calculation Top 5 inherent risks:

1) During the RFO preparation, software bloat can result in a lot of ‘nice to have’ features that obscure core functionality. A typical budget for an enterprise software solution is an expensive, one-time expenditure which results in the client trying to address all possible future needs in the RFP requirements. This results in 80% of users using only 20% of the features within the application (80/20 rule).

2) High variability of cost and time based on: the complexity of the requirements, corporate procedures/policies and employee availability. All of these factors result in a much more expensive and longer procurement process than originally anticipated.

3) The probability of executive sponsor interest loss and/or funding loss increases as time and costs accumulate during the procurement process. Sunk costs and solution abandonment are inevitable when interest or funding are lost.

4) Scope creep is created by late entrant stakeholders (often coming from various functional areas) becoming involved in the procurement process. Scope creep aggravates risks 2&3 when these new entrants voice their needs for the software.

5) The core day-to-day job responsibilities of the personnel involved in the procurement project take precedence and as a result delay the benefits and ROI of the eventual software solution. This results in frustration of the business units in need of the solution and creates executive sponsor doubt.

Res

earc

h(6

mo

nth

s)

10-20 1) Evaluation of purchasing the solution vs. using internal resources to create a solution. 80 hours x $60 FTE = $50002) Market research performed and a “long list” of vendors developed. 160 hours x $60 FTE = $9000

$14,000 $20,000*Cost variance based on size and complexity of the organization and software complexity

RFI

(o

pti

on

al)

(3 m

on

ths)

10 1) The RFI is less retailed than the RFP and it outlines the various high level goals to be accomplished by the enterprise software solution. 50 hours x $60 FTE x 5 people = $15,000

$15,000 $20,000

RFP

(2

-21

mo

nth

s)

3-8 1) High level demos attended by senior personnel within the purchasing organization. 2 hours x $60 FTE x 8 people x 3-8 demos = $70002) Analysis of results from demos 8 hours x $60 FTE x 8 people = $4000 3) Committee to create, draft and review the RFP document. (3-6 months). A formal process around the internal requirements gathering precedes the creation of the RFP. (6 months)200 hours x $60 FTE x 5 people = $60,000 4) A large accounting firm often used as a consultant to help with RFP preparation and/or review$35,000 - $110,000 (depending on the extent of the scope on the consulting agreement)5) Corporate policy needs to be developed (if not already in place) to ensure fair bid process. 80 hours x $60 FTE x 2 people (legal/HR) = $10,000 6) Designated point of contact required to answer questions in standardized/fair methodology and according to corporate policy. 80 hours x $60 FTE = $5000

$200,000 $260,000

Ven

do

r D

emo

s(2

mo

nth

s)

1-5 1) In-depth demos require sample data to be provided to the vendors. Data must be exported and scrubbed to remove any proprietary/sensitive information. 80 hours x $60 FTE x 2 people = $10,0002) Detailed demos attended by staff which will be directly involved with the software implementation. (Directors, Managers, Senior Staff)8 hours x $60 FTE x 8 people x 1-5 demos = $19,0003) Analysis of results. 16 hours x $60 FTE x 8 people = $8,000

$35,000 $50,000

Fin

al D

emo

(1

mo

nth

)

1-3 1) Final demos attended by executive sponsors once all the ground work has been done by the project committee. Final assessment of the solution is performed and executive buy-in is established. 8 hours x $60 FTE x 6 people x 1-3 demos = $6000

$6000 - $10,000

Aw

ard

of

bu

sin

ess

(1-1

2 m

on

ths)

1 1) Price negotiation and license counts 40 hours x $60 FTE x 2-3 people (Director/IT/Finance/ProcurementDept.) = $70002) Contract legal terms negotiation40 hours x $400/hour legal rate = $16,0003) Statement of work (SOW)16 hours x $60 FTE x 4 people (Director/Manager, Senior employees) = $40004) Technical IT requirements/questionnaire20 hours x $60 FTE x 2 people (IT) = $2000

$30,000 $80,000

12-36 months Time and cost before purchasing enterprise solution $300,000 - $440,000

Res

olv

er G

RC

Clo

ud

A

dva

nta

ge

Choosing GRC Cloud vs. engaging in the procurement process provides: 1) Instant savings on the purchase cost of the software solution (GRC Cloud is not modular and all required functionality is already available to the client)2) Greater ROI on the initial purchase of GRC Cloud and exponential benefit realization with each additional business functionality incorporated into GRC Cloud. [$100,000 + $300,000 - $25,000] to [$500,000 + $440,000 - $100,000]

$375,000 $840,000 in total cost savings (The range relates to the degree of complexity and the cost of the new software implemented)

Needs identification

Research vendors

Long List of Vendors created

Internal Req. gathering RFI Creation &

Distribution Evaluate responses &

Refine Vendor list

Intro/high-level demos

In-depth internal req.

gathering

Consultant hired for RFP Review

RFP Creation & Distribution

Corp. Policies developed

Clarification of Vendor

Questions

Evaluation of RFP Responses

Vendor short list created

Prepare and share ‘dummy

data’ with vendors

Detailed (Full Day) demos –validation of

responses

Analysis of results

Final demos to Exec Sponsors

Analysis & Vendor chosen

(Informal Award of Business

Price Negotiations & License Counts

Contract Terms (Legal)

Statement of Work Developed

IT Coordination

Purchase new software or

use GRC Cloud

New Software: Software licensing, Implementation & Configuration cost

$100,000 - $500,000

Continue using GRC Cloud: Extra licenses

& internal configuration

$100,000 - $500,000


Documents

Calculating the ROI of GRC software. - · PDF fileGRC initiatives, but extend to all employees that interact with the software. The following table breaks down the additional benefits