5GRC
Dr. Caesar J's Digital Management periodicals
My eighteenth article in the series of deep tech matching summary outlines
February 2024
My eighteenth article on Deep Tech monthlies matches GRC with 5G, which gives a whole new dimension for GRC and how we perceive it and practice it. The more the Data the more the GRC. If 2G brought mobility, SMS and roaming; 3G the data; 4G access to video communications and content; 5G is opening a whole new industrial sector. Wider connectivity corridors flooding data on one side, and regulators assigning its policing responsibility unto corporate #grc relationship managers, on the other. The #5G industry is regulated and supervised from at least two bodies in every country legislation: telecoms and financial regulations because FinTech is the elephant in the 5G room. In addition to regulations, there is also the multi-layered impacts on governance, risk, and compliance. We still do not know the depth and strength of the 5G: IoT, additional data mass, new or unidentified risks, driverless vehicles, education, weaponry, art, health, and the list goes on. The economic reach of the #5g is unmeasured, this unmeasure applies on the risk exposures. We will have to expect that every corporate managerial decision should be run by the GRC department, and that this department will be present in every steering and executive committee. There was a time when the three managerial functional pillars were technical, finance and marketing; then IT was added because data became the wealth; now the troika becomes 5. (Don’t you like my puns?) In this new managerial combination, the GRC will have the strongest voice and veto right on the table; and at the same time, the biggest opportunity for KashYou if GRC is geared on a commercially minded approach towards sustainable value creation. As announced in my previous Articles, we continue to focus on the hypothetical KashYou borderless super-App. The 3 additional selected digital business opportunities are in the technology spread, the mentality obstacle and in off-loading GRC where less risk leads to more profits.
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1)??? We start by Kashyou cases on selected opportunities for consistency’s sake. There is a lot at stake: shared data among several layers of very different partners, allowed marketing content, cross-partnerships, debt, and lending. It needs to be specified that KashYou is an extremely complex #grc case; and it is precisely its GRC challenge that is the entry barrier preventing the launching of similar borderless #superApps on the market.
Considering that every challenge is an opportunity, the Data generated and circulated in the marketplace of a borderless super-App could turn into a #grc nightmare. Amazon went through this marketplace challenging data experience and underwent a lot of criticism. Amazon and WeChat (as generic business models) have territorial monoliths, while Kashyou has planned integrated partnerships per territory. A typical territory would have at least the following conflicting data partners overlaps integrated to its platform: bank(s), payment gateway(s), merchants, DID or omni-channel provider(s), call center(s), logistics partners, last mile distributor, and there could me more verticals in atypical territories, depending on regulations. The #5g Network Management Center will have to circulate, protect, store, secure, and save the data. This is normal, expected and built in. While the GRC department assigned to bring this conundrum into corporate business sense is a business opportunity in itself.
In addition to the partnerships data, there is a GRC responsibility in the Advertising messages and marketing communications going out from the super-App. Each territory has a different level of language tolerance, translations, copyrights, trademarks, and etiquette. All these KashYou super-App specific complications fall under #grc. The #5G amplifier is more far reaching, therefore #grc errors cannot be hidden.
When we analyze, slice and dice by Products and Partnerships of the borderless super-App KashYou Marketplace, we will have to decide on the width and breadth of the #grc department. The #5G technology is designed and ready to deliver from the technical side. Even if we robotize some of the GRC functions, automate and enable AI, the GRC should remain under human executive managerial accountability. It is obvious that some territorial GRC substance is necessary.
One more selected digital opportunity is in the BNPL and debt service delivery. I had argued in my eighth monthly article of the series, published in April 2023 on LinkedIn, that 5G + EmFi = Digital Economy; this means that 5G will be the best opportunity for FinTech services. This time we revisit the concept at micro-economy corporate level of KashYou from the GRC angle. Within FinTech, lending is a heavy burden on #grc. Loading 5G means over-loading GRC.
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2)??? The 5G technology is infinitely stretchable: RedCap (Reduced Capability) and 5G Massive IoT are only two examples, to be added on AI (you can refer to my tenth article of this same series, published in June 2023, Generative 5G). The 4 relevant selected digital business opportunities from the angle of how the #5G technology progress creates opportunities for #grc are in whether regulators and users are able to follow, and is it an advantage for those who can and know how to use this technology growth in favor of #grc?
I am confident that Regulations are catching up with technology[1] because it can leap-frog ahead of it. The IEEE, ITU, GSMA, #megatech lobbyists, and other assorted organizations are on the prow. Major #5g vendors and technology legislators sit on the same table, the R&D engineers would have provided them the report. The ESG and health hazards are not ignored. When the roadmap is dissiminated out of this meeting table, the regulators will have to update their KPI’s and tolerance levels. In the meantime, the arbitraging entrepreneurs benefit from the grey areas or law silence. The digital business opportunity is in benefiting from these regulatory gaps; is our #GRC team equipped to benefit from these arbitraging zones?
When the #grc team is customer centric, it has to take in account whether Users are catching up with regulations. The mobile phone users on the #5g borderless KashYou network are offered what the overarching AppStore and GooglePlay GRC teams allow them. The KashYou #grc team is accountable towards each of the local regulators. How much is the customer centric KashYou GRC team contributing to the customer experience and UX?
We reach now the blue ocean shore of the #GRC entrepreneurs, those who have the talent to discover, build and glide on the clouds of the light grey 5GxGRC before others. The #5g ecosystem is a vertical encompassing many economic sectors, KashYou is one of these 5GRC entrepreneurial cases. I focus here on those entrepreneurs that find the #grc opportunities within the 5G.
The 5G technology is not running away from GRC. We had looked into how 5G supports GRC in a previous October 2023 article of this same series (Artificial Compliance Intelligence). The #GRC can benefit from the #5G computing strength and reach by collecting the data it requires for its controls and by integrating, building, and securing its RegTech solution.
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3)??? The third digital business opportunity is in reaching the Mentality of the commercially minded GRC team. The DNA of a #GRC team member is that of a risk averse. The digital business opportunity is in finding this mutation or in nurturing it. Is it enough to impact the whole corporate culture of the #5g mobile operator, can it be extended to the partners’ stakeholders, or the ecosystem, what if we include ethics and ESG?
For this mentality to flourish, it requires the right Corporate GRC culture. Culture, inclusion, and leadership come together, not outsourceable, and not acquired by training. The #5g #GRC team need to feel protected by seeing all the KashYou staff implementing and applying GRC in their daily decisions. When GRC becomes a natural reflex throughout, the #GRC team will not feel isolated and having to carry the protection burden of KashYou on their own, they will feel encouraged to participate in the growth and in the business development.
GRC is an ecosystem, it should not be confined to KashYou. Partnership stakeholders should be nurtured into embracing the GRC mentality. If #5g is the infrastructure, the #grc is the underlying policy and protective hemisphere layer. Each partner will have GRC policies, but the overarching territorial regulations will take precedence, provided the #GRC mentality is prevailing.
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The digital business opportunity in the #grc cultural impregnation of the Ecosystem GRC mentality embracing is not enforceable, it is by its natural dissipation into the practice application. If everything is GRC friendly inside the ecosystem, any new non-compliant element will be quickly notice and flagged. This mentality obligation is part of the #5G impact on the telecoms industry. A mobile network operator without a KashYou super-App equivalent will still have to upgrade its GRC.
The 5GRC does not end here. We still have what is called the Enhanced GRC: ethics, ESG, and other environmental responsibilities. Developing the #GRC department and team is part of business, digital and center of excellence. The digital business opportunity is in enhancing the GRC to join the select few #5g mobile operators who do it.
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4)??? We cannot do half #GRC, but can we DeGRC? That was the subject of my very first article of the series in September 2022, can EmFi (Embedded Finance) avoid GRC? The KashYou super-App is a super EmFi on a #5G data-supertanker. If we cannot outsource, can we by-pass, turn off the lights, or deKashYou. The bigger the headache the greater the value creation.
Since GRC cannot be outsourced, the digital business opportunity is in outsourcing KashYou under a management contract. Less profits but easier business management. It is becoming clear that commercially minded #GRC is key to maximize profits. The way data is growing, the need for GRC will keep growing. The opportunity is for those #5g mobile networks who can turn less risk into more profits.
Some GRC functions can be assigned to specialized cabinets to reduce costs when Bypassing #GRC is possible. Compliance cannot be reassigned in case the FinTech activity in a certain territory is live. Risk and Governance could be by-passed in certain #5g mobile operator territories. The more the cost is reduced by bypassing GRC, the less the value creation expected.
Other options exist for stealth or Dark GRC modes. The digital business opportunity is in getting away with it. This is not a recommended course of action for a #5g mobile operator, same as going crazy on GRC on overkill measures. It is necessary to apply high standards of #GRC but there is no point in overdoing it. On the contrary it might insinuate suspicious activities or drive inadvertently the regulator into less business-friendly decisions, thinking it is normal.
If we chose to apply the US FCC Net Neutrality model, we will have to completely separate KashYou and deal with it as if it is a customer tenant on the network. The #5g network will hire its own lighter telecom #GRC and KashYou will have its own ChineseWalled GRC. The digital business opportunity will be handicapped by locking the access to the combined data lake.
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My eighteenth article on the digital business opportunities series covered the value created by applying GRC on a 5G loaded with FinTech on a borderless super-App. Is this an over-dose for #grc? Most probably yes, and this is why it becomes an interesting topic: How to #grc a #super-App?
All my articles are in summary outline format, meaning that any paragraph therein can be expanded into a publication on its own.
My next monthly article expected in the second half of February is the penultimate trilogy of the series. All my puns are intended.
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Dr. Caesar J