Headline: If Your Controls Aren't Modern, Your GRC Program Isn't Either — Modernization for 2026
The Modernization Imperative
With the emergence of technologies such as artificial intelligence (AI), organizations have a unique opportunity to rethink their approach—eliminating waste, enhancing effectiveness, and delivering real value from controls while doing more with less .
Why act now:
- Reduce cost pressures by eliminating duplication and low-value controls
- Meet evolving regulatory expectations with proportionate, risk-based controls
- Improve agility with leaner control environments
- Strengthen accountability as heightened focus on director duties means ineffective controls can lead to personal liability
The Modernization Framework
1. Diagnose and Prioritize
Assess the current control landscape to identify duplication, inefficiency, and manual effort. Focus on controls that are needed to meet regulatory obligations and/or address the most significant risks .
Key questions:
- Which controls are redundant?
- Which controls are misaligned with actual risk?
- Which controls are inefficient?
- Which controls are manual?
- Which controls have gaps?
2. Benchmark and Rationalize
Compare practices against peers and regulatory standards. Consolidate and streamline controls to close gaps and prioritize effectively .
Rationalization actions:
- Eliminate redundant controls
- Consolidate overlapping controls
- Automate manual controls
- Redesign ineffective controls
- Add controls for identified gaps
3. Automate and Modernize
Leverage data, automation, and AI to enhance monitoring, testing, and reporting. Embed smarter oversight and enable continuous improvement .
Modernization capabilities:
- Continuous controls monitoring
- Automated control assessments
- AI-powered anomaly detection
- Real-time risk visibility
- Intelligent automation
4. Strengthen Governance
Clarify ownership and accountability, align controls to legal duties, and ensure they remain defensible and agile .
Governance enhancements:
- Clear control ownership
- Documented control processes
- Regular control reviews
- Exception management
- Accountability structures
The Controls Modernization Opportunity
The challenge: For most organizations, the internal control environment has grown organically over time, often as a result of overlapping, manual, or outdated controls .
The opportunity: With emerging technologies such as AI, organizations can eliminate waste, enhance effectiveness, and deliver real value from controls .
Controls Modernization and GRC Platforms
The GRC platform market is shifting toward targeted solutions. Some 64% of respondents said they would rather use targeted agentic AI systems than broad all-in-one platforms. That share rose to 70% among buyers focused on risk .
The message: Buyers aren't waiting for the next generation of tools. They've moved their money toward agents that can prove specific, repeatable, and defensible outcomes.
Conclusion
Controls modernization is essential for effective GRC in 2026. Organizations that modernize their controls—rationalizing, automating, and strengthening governance—will reduce costs, improve assurance, and meet evolving regulatory expectations.
Action Items for Your Organization
- Assess your current control environment
- Identify duplication and inefficiency
- Prioritize controls for modernization
- Rationalize overlapping controls
- Automate manual controls
- Strengthen governance and ownership
- Measure the impact of modernization
