SAP GRC: Embedded vs. Standalone – Deciphering the Best Fit for Your Organization

Governance, Risk, and Compliance (GRC) are critical to successful businesses. SAP GRC offers tools to help organizations manage the ever-changing landscape of risks, regulations, and internal controls. Within the SAP GRC realm, you have two primary deployment options: Embedded GRC and Standalone GRC. Choosing the right fit is essential, and this blog will help you understand the nuances and guide your decision-making.

What is SAP GRC?

Let’s start with a quick refresher. SAP GRC is a set of software solutions designed to:

• Manage access risks: Ensure users have the correct permissions within your SAP systems to prevent fraud and errors.
• Streamline compliance processes: Monitor and enforce controls to meet industry regulations and internal policies.
• Monitor business processes: Identify potential weaknesses or inefficiencies in your business workflows.

Embedded GRC: Built into SAP S/4HANA

Embedded GRC is a streamlined suite of GRC functionalities integrated within SAP S/4HANA systems. This approach offers several advantages:

• Tighter integration: Leverages real-time S/4HANA data for risk analysis and compliance monitoring.
• Simplified deployment: Since it’s part of your S/4HANA system, it eliminates additional setup and maintenance.
• Lower costs: Often included in S/4HANA licensing, lessening upfront investment.

Embedded GRC focuses primarily on core functions like:

• Access Control (AC): Manages user access, segregation of duties (SoD) analysis, and user provisioning.
• Process Control (PC): Monitors business process controls and automates compliance testing.

Standalone GRC: A Separate System

Standalone GRC is a full-fledged, independent GRC system that can connect to your SAP S/4HANA or other SAP (and even non-SAP) systems. Advantages include:

• Expanded functionality: It offers a wider range of GRC modules, including risk management, audit management, and business integrity screening.
• Centralized GRC platform: Can consolidate GRC functions for your entire IT landscape, not just SAP.
• Customization and scalability: Provides greater flexibility to tailor the GRC solution to intricate business processes.

Key Decision Factors

Which deployment model is suitable for you? Here are the critical questions to consider:

1. Scope of GRC: Do you need core access and process controls within S/4HANA or a comprehensive GRC platform for enterprise-wide risk management?
2. IT Landscape Complexity: Is your IT environment primarily based on SAP, or do you have a mix of systems that need integrated GRC oversight?
3. Budget and Resources: Are you seeking a cost-effective solution or prepared to invest in a full-featured, customizable GRC platform?
4. Future Scalability: How does your organization envision its GRC needs evolving?

Situations Where Each Excels

• Embedded GRC Ideal For:
  • Organizations primarily focused on managing risks within SAP S/4HANA.
  • Companies are transitioning to S/4HANA and seeking integrated GRC.
  • Organizations with budget constraints are looking for a basic GRC solution.
• Standalone GRC Ideal For:
  • Organizations with complex, diverse IT landscapes.
  • Companies requiring advanced GRC features beyond core controls.
  • Organizations need to manage risks across non-SAP systems.

In Conclusion

Embedded and Standalone SAP GRC solutions provide robust tools to mitigate risks and promote compliance. The choice depends heavily on your specific needs and priorities. Carefully considering the abovementioned factors will guide you towards the most suitable deployment model for your organization.