Navigating the Future of IT General Controls (ITGC)

IT General Controls (ITGCs) are experiencing significant transformation as businesses adapt to modern security, compliance, and efficiency demands. The once familiar territory of manual control checks and standalone applications has grown into a complex landscape of interconnected cloud-based systems requiring nuanced attention and a strategic approach to designing ITGCs.

As companies rely more on automation, cloud technologies, and cross-functional integrations, the role of ITGCs has become more central to an organization’s overall governance and risk management framework. In this article, we explore the most relevant trends shaping ITGCs today and how keeping pace with these trends leads to a more effective and efficient approach to a strong internal control system and the auditing of IT general controls.

Automation Drives ITGC Efficiency

One of the most notable trends in ITGC is the push towards automation. Manual controls are now considered inefficient and error-prone, especially as IT environments become more complex. Automation has become essential to improve accuracy, reduce human error, and enable organizations to apply controls at a broader scale. Frank Vukovits recommends taking a risk-based approach to automating processes. “When prioritizing controls like access management, change management, and segregation of duties (SoD) checks, companies can take smaller steps by choosing to automate the highest risk areas first to get the most benefit,” says Frank.

Automated controls facilitate extensive coverage that is often impossible to achieve manually. For instance, organizations can now run automated checks on user access across multiple systems, identifying conflicts or anomalies within seconds instead of days. This capability becomes particularly valuable during audits, where an auditor’s manual sampling methods may fail to capture the full scope of an issue. Automated solutions enable auditors to review all instances of a control process rather than sampling a subset, leading to more comprehensive insights.

The Rise of Cloud-First IT Environments

Organizations are embracing a cloud-first environment for everything from human resources to financial management and ERP systems, all with their unique security models, requirements, and risks. Mindi Scorey notes, “Many organizations are working to standardize ITGCs across on-premise and cloud systems to cope with the challenge of having multiple disparate cloud providers.” Integration tools that allow data from cloud-based and on-premise applications to flow into a unified platform have become essential for visibility and control. This approach can reduce the risk of siloed security models and inconsistent control implementations, ensuring that ITGCs are enforced consistently across the enterprise.

Mindi highlights one practical application of standardization is in user access management. “Traditionally,” she says, “each system might have its method for assigning roles and privileges. Today, organizations are turning to Identity and Access Management (IAM) solutions that provide centralized control over access privileges across all applications, whether cloud-based or on-premise.” Centralization of IAM ensures that user access is managed uniformly, making it easier to detect conflicts, such as users with excessive or inappropriate access rights.

Risk-Based Approaches for Effective Resource Allocation

A risk-based approach to ITGCs has become more important, given the number of applications and systems. IT and audit teams are increasingly prioritizing their efforts based on the risk profile of each system and application, focusing resources on those critical to the organization’s business operations or that house sensitive data.

Risk-based prioritization involves conducting risk assessments to identify which areas are most vulnerable to threats and allocating resources accordingly. “For example,” notes Frank, “systems that store confidential customer data or process financial transactions require more stringent access controls and monitoring than internal systems for daily operations.” By focusing on high-risk areas, organizations can maximize their return on investment in control resources, like ITGCs, ensuring that the most critical areas are safeguarded.

Enhanced Integration of GRC Platforms and ITGC Solutions

As IT environments grow more complex, integration between GRC platforms and ITGC tools has become increasingly valuable. “Leading GRC platforms like AuditBoard enable organizations to centralize their control and risk management efforts, allowing IT and compliance teams to track, document, and report on controls across multiple systems,” says Mindi.

Through integration, organizations can consolidate control activities and audit evidence in a single location, simplifying the audit process and providing a clear line of sight across the organization’s risk landscape and internal control system. This integration also enhances the effectiveness of control testing and allows for continuous monitoring, enabling teams to identify and address potential issues as they arise.

One common area where GRC integration adds value is in user access reviews. “Many ITGC tools, such as Delinea, automate the generation of user access reports, tracking user roles, permissions, and SoD conflicts across systems. By integrating Fastpath with a GRC platform like AuditBoard, organizations can store, manage, and review access logs and control evidence in a central repository,” says Frank. Centralizing controls streamlines compliance reporting, reduces audit fatigue, and ensures that ITGC testing results are always up-to-date.

The Future of IT General Controls

The future of IT general controls lies in adaptive, risk-based approaches that embrace automation, integration, and continuous monitoring. Automation reduces human error, standardizes control applications across systems, and speeds up compliance processes, helping businesses respond to the growing demands of regulators and stakeholders alike. Risk-based prioritization ensures that resources are allocated efficiently, focusing on critical systems and data.

ITGCs are evolving from isolated, manual processes into sophisticated, technology-driven frameworks supporting enterprise-wide risk management and governance. The benefits for organizations willing to invest in these changes include streamlined operations, stronger security postures, and an enhanced ability to meet regulatory requirements in an increasingly complex digital world.

Want a deeper dive on the subject? Watch the on-demand webinar to hear our full discussion on Trends in IT General Controls (ITGC): Walking the Highwire With Tools and Auditor!