Playbook: Moving from Pipeline-Based GRC to a Networked Model

Healthcare organizations are moving away from outdated pipeline-based GRC (Governance, Risk, and Compliance) systems. Why? These models are too rigid and siloed to handle modern cybersecurity threats and complex vendor relationships. A networked GRC approach, on the other hand, promotes real-time communication, centralized data, and streamlined processes - perfect for today’s interconnected healthcare systems.

Key Takeaways:

• Pipeline GRC Issues: Static, siloed, and slow to adapt to evolving risks. It often leads to fragmented data and delayed responses.
• Network GRC Benefits: Real-time risk tracking, centralized data sharing, and improved collaboration across teams.
• Why It Matters: In 2023, over 133 million patient records were exposed, and ransomware attacks surged by 46% in 2024. Healthcare data breaches cost $4.88M on average.
• Key Tools: Platforms like Censinet RiskOps™ centralize risk management, automate compliance, and use AI for faster, smarter decisions.

Switching to a networked GRC model isn't just an upgrade - it's a necessity to protect sensitive patient data, meet compliance standards, and improve operational efficiency.

WEBINAR The Future of AI Powered GRC and Cyber Risk Management

Pipeline-Based vs Network GRC: Key Differences

As mentioned earlier, the traditional pipeline approach falls short in managing risks in real time. This section explores how a networked GRC model addresses these challenges. The two models differ significantly in how they handle risk management, compliance, and governance, with clear impacts on both security and operational efficiency.

Structure and Operations Comparison

The way these models are structured directly affects their operations. Pipeline-based GRC uses a linear, compartmentalized framework where each function works independently. This setup often creates bottlenecks, especially when healthcare staff need quick answers to compliance or risk-related questions. On the other hand, network GRC integrates processes, enabling real-time communication across all components. For example, a healthcare worker spotting a potential security issue can directly engage with governance protocols instead of escalating the issue through multiple layers of approval ^[1].

These structural differences create a foundation for more effective vendor management and regulatory compliance, which we’ll explore further in the following sections.

Managing Vendor and Supply Chain Risks

The healthcare industry faces unique challenges when it comes to vendor and supply chain risks. The modern healthcare supply chain is a vast digital ecosystem, heavily reliant on third-party vendors for tools like cloud-based EHR systems, IoT-enabled medical devices, remote monitoring platforms, and AI-driven diagnostic tools ^[3]. Each vendor represents a potential vulnerability, making robust risk management essential.

Pipeline-based GRC depends on manual, fragmented processes to manage vendor relationships. This approach often involves spreadsheets and disconnected systems, which makes maintaining real-time visibility into vendor compliance nearly impossible. Network GRC, however, centralizes vendor management, allowing for automated, real-time security assessments across the entire vendor ecosystem.

With network GRC, healthcare organizations can continuously monitor vendor compliance, track security certifications, and address issues as they arise, rather than waiting for periodic reviews. This proactive approach ensures a higher level of security and compliance.

Take HIPAA compliance as an example. Under HIPAA, business associates - including third-party vendors - must meet strict security requirements such as encrypting PHI, implementing multi-factor authentication, and ensuring proper network segmentation ^[3]. Network GRC solutions simplify this process by offering a centralized repository for vendor contracts, compliance certifications, security assessments, and incident reports. This makes regulatory audits much smoother and more efficient ^[3]. Considering the steep penalties for non-compliance, such as breach investigations, patient notifications, and lost revenue, having a streamlined system is crucial ^[3].

Compliance and Regulatory Support

In an increasingly complex regulatory environment, network GRC provides a streamlined approach to compliance. Pipeline-based models often create silos that hinder communication and lead to inconsistent policy enforcement. In contrast, network GRC offers a centralized view of governance, risk, and compliance data ^{[2] [4]}. This integration allows for real-time risk identification, proactive policy updates, and automated compliance checks ^[2]. Additionally, network GRC systems include robust reporting and analytics tools to help healthcare leaders evaluate compliance efforts and make informed decisions ^[4].

The value of an integrated GRC framework becomes even more apparent when examining past incidents. For example, a well-implemented GRC system could have mitigated the ransomware attack on Change Healthcare by incorporating several key practices ^[2]:

• Governance Oversight: Enforcing cybersecurity policies with clear accountability and conducting regular security audits to identify vulnerabilities early.
• Risk Management: Continuously monitoring threats and implementing safeguards to proactively address risks like ransomware.
• Regulatory Compliance: Adhering to standards like HIPAA to establish baseline security measures and protect sensitive patient data.

Core Components of a Network GRC Model

Building a strong network GRC model hinges on three key components working in harmony. Together, these elements reshape how healthcare organizations manage governance, risk, and compliance, breaking down silos and enabling seamless collaboration among stakeholders.

Centralized Risk Management Platforms

A centralized platform integrates data from multiple sources into a single, unified view of risk, eliminating silos and creating a comprehensive foundation for risk management activities ^[7].

Take Censinet RiskOps™ as an example. This platform centralizes risk management by combining third-party risk assessments, enterprise security evaluations, and compliance monitoring into a unified dashboard. It automates tasks like asset inventory, vulnerability scanning, compliance monitoring, and reporting, which not only saves time but also improves the accuracy and timeliness of risk assessments ^[5].

When choosing a platform, healthcare organizations should consider factors like integration with existing systems, ease of use, customization to fit workflows, and pricing that fits their budget ^[8]. A centralized system lays the groundwork for leveraging automation and real-time collaboration, which are essential for modern risk management.

Automation and AI-Powered Analysis

Once a centralized hub is in place, automation and AI take risk assessment and compliance to the next level. These tools provide real-time, actionable insights, which are crucial for healthcare organizations navigating complex regulations and evolving cyber threats ^[9].

In February 2025, Censinet partnered with AWS to launch Censinet AI™, a tool that showcases the power of these technologies. It allows vendors to complete security questionnaires in seconds, summarizes vendor documentation, identifies integration details, and highlights fourth-party risks. It even generates risk summary reports based on assessment data ^[11].

"With ransomware growing more pervasive every day, and AI adoption outpacing our ability to manage it, healthcare organizations need faster and more effective solutions than ever before to protect care delivery from disruption." - Ed Gaudet, CEO and founder of Censinet ^[11]

AI's impact goes beyond automation. It strengthens data privacy and security by identifying vulnerabilities and predicting threats before they occur ^[9]. It also streamlines compliance monitoring by analyzing patient records, billing data, and workflows to spot gaps that might go unnoticed by human reviewers. This is particularly critical, as human error contributes to 82% of data breaches ^[6].

AI-powered tools are also adept at incident reporting and analysis, uncovering patterns and root causes to recommend preventive measures ^[9]. This shift from reactive to proactive risk management not only enhances security but also delivers financial benefits. For instance, healthcare fraud, waste, and abuse cost over $100 billion annually, according to the General Accounting Office ^[10]. By automating claims review and addressing compliance issues early, AI helps reduce these costs ^[10]. The next step is ensuring this data is shared and acted upon efficiently.

Real-Time Data Sharing and Team Collaboration

Breaking down communication barriers is the third pillar of a strong network GRC model. Real-time data sharing and collaborative tools allow governance, risk, and compliance teams to work together seamlessly.

Censinet AI™ enhances collaboration by enabling advanced routing and orchestration across teams. Key findings and tasks are directed to the appropriate stakeholders, including members of AI governance committees, for timely review and approval ^[11]. This approach eliminates bottlenecks often seen in siloed systems, where information can get trapped in departmental pipelines.

Instead of waiting for formal escalation, teams gain instant access to real-time data and can engage directly with relevant stakeholders. This immediate access speeds up response times and improves decision-making quality. A centralized dashboard becomes the hub for all policies, tasks, and communications, ensuring the right teams address the right issues at the right time ^[11].

"Our collaboration with AWS enables us to deliver Censinet AI to streamline risk management while ensuring responsible, secure AI deployment and use. With Censinet RiskOps, we're enabling healthcare leaders to manage cyber risks at scale to ensure safe, uninterrupted care." - Ed Gaudet, CEO and founder of Censinet ^[11]

This collaborative framework is essential for navigating the complex relationships in modern healthcare. With numerous vendors, regulatory demands, and internal stakeholders involved, a system that promotes clear communication and shared accountability is critical for maintaining security and operational efficiency.

Together, these components illustrate how a networked GRC model addresses the ever-evolving challenges of healthcare cybersecurity. By integrating centralized platforms, automation, and real-time collaboration, organizations can tackle risks more effectively while ensuring uninterrupted care delivery.

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How to Transition to Network GRC

Shifting to a networked GRC model requires a well-thought-out plan and seamless execution. For healthcare organizations, this means tackling existing challenges step by step across three critical phases to ensure lasting improvements.

Evaluating Current GRC Capabilities

Before diving into new tools or processes, it’s essential to take stock of where things stand. Start by auditing your current GRC policies, procedures, and technologies related to governance, risk management, and compliance ^[14]. This review should focus on how policies are created, risks are managed, and compliance is tracked.

Look closely at how information flows (or doesn’t) between departments. Are there bottlenecks keeping data siloed? Are critical issues delayed in escalation? Are governance, risk, and compliance teams struggling to communicate effectively? These gaps often highlight the shortcomings of outdated pipeline models. Document how long it takes to complete risk assessments, address compliance issues, and work with third-party vendors.

"Assessing GRC maturity can help identify areas for improvement, leading to smarter decisions and better results for the company." – Oro ^[13]

Use this evaluation to develop a GRC roadmap with clear goals for the transition. These might include meeting specific compliance standards, improving risk management, or enhancing collaboration with vendors. Weighing the potential benefits and costs of a networked GRC program will also help leadership understand the expected return on investment.

During this phase, common pain points often emerge, such as reliance on manual processes, disconnected systems limiting visibility, and outdated information causing delays. Recognizing these challenges will help prioritize what needs fixing first.

Armed with this understanding, organizations can begin laying the groundwork for impactful changes.

Installing Key Technologies and Processes

Once the assessment is complete, it’s time to build the foundation for networked GRC. This step focuses on replacing siloed systems with integrated platforms and automating workflows to improve efficiency.

A prime example is Censinet RiskOps™, which centralizes third-party risk assessments, enterprise security evaluations, and compliance monitoring into a single dashboard. This platform automates critical tasks, enabling faster and more precise risk management.

GRC software simplifies processes like policy creation, risk assessments, and incident reporting ^[15]. However, introducing new technology also brings challenges like data privacy and cybersecurity risks. These must be addressed through measures such as vulnerability assessments, staff training, disaster recovery plans, and incident response strategies ^[15].

A strong networked GRC model starts with core risk management components. Regular risk assessments form the backbone, prioritizing potential threats based on their likelihood and impact. For instance, frameworks like the HITRUST Threat Catalogue can help healthcare organizations identify specific risks and implement safeguards like encryption protocols and continuity plans.

Consider a clinic tackling medication errors caused by miscommunication between its electronic health record (EHR) system and the pharmacy. By introducing a protocol to double-check prescriptions before they are sent, the clinic uses technology-driven processes to address a critical healthcare risk ^[16].

By embedding compliance and sound practices into daily operations, GRC software can streamline workflows and ensure that essential information reaches the right people at the right time ^[17]. With the technical groundwork in place, the next step is rallying support across all stakeholders.

Getting Buy-In from All Stakeholders

For a smooth transition, securing commitment from clinical, IT, and vendor management teams is essential. Without their support, even the best technology can falter.

"Effective governance requires adherence to established procedures and maintaining data integrity." – Industry Expert ^[12]

Executive leadership must lead the charge, clearly explaining how the networked model enhances patient safety, reduces compliance costs, and strengthens cybersecurity. They should allocate resources and set clear timelines to keep the transition on track.

Clinical teams need to see how the new approach will impact their workflows and patient care. Highlighting how automation can reduce administrative tasks while improving patient safety can help gain their trust.

IT departments play a critical role in implementing and maintaining new platforms like Censinet RiskOps™. They’ll need training to integrate these tools with existing systems and leverage automation to safeguard data security.

Vendor management teams are equally important. They must adapt to new processes for assessing and monitoring third-party risks. Training on collaborative tools that enable real-time vendor communication can speed up onboarding without compromising security.

Clearly defining roles and responsibilities is the final piece of the puzzle ^[13]. Form cross-functional teams with representatives from each group to ensure operational needs and compliance goals are met. Regular updates and training sessions will keep everyone aligned and address concerns as they arise.

Measuring Results and Making Improvements

After implementing a system, the next critical step is to measure its effectiveness and refine it continuously. Without clear metrics and regular evaluations, even a well-designed system can lose its way or fail to address new risks as they emerge.

Key Performance Metrics to Track

Start by monitoring key performance indicators (KPIs) related to governance, risk management, and compliance. For governance, metrics like policy adherence rates, board meeting attendance, and decision-making times can help assess leadership effectiveness. Risk management metrics - such as risk exposure levels, mitigation success, and incident response times - highlight how quickly and effectively threats are managed, ensuring patient safety. Compliance indicators, including audit success rates, training completion rates, and third-party compliance rates, measure adherence to regulations and the success of training programs ^[18].

These metrics align with the goal of real-time risk mitigation, enabling organizations to make quick, informed decisions.

As OCEG notes:

"Discovering the true value of a GRC system goes beyond merely measuring its activities like risk assessment or policy management. Instead, it's about understanding the outcomes these activities drive" ^[19].

Advanced metrics can provide additional insights. For example, tracking the recurrence rate of audit findings can reveal whether corrective actions are effective. Similarly, control maturity scores and mitigation velocity offer a clearer picture of how well risks are being addressed and how quickly improvements are implemented ^[19].

These metrics also point out areas where a networked GRC model can bring measurable improvements, particularly in shifting from static to dynamic risk management.

Ongoing Improvement Through Regular Assessment

Regular assessments are essential to identify emerging risks and evaluate how well mitigation strategies are working, especially as healthcare technology evolves and regulations change ^[20]. Conducting thorough risk assessments in alignment with business objectives helps organizations understand how vulnerabilities could impact patient care, operational efficiency, and financial stability. Regular audits ensure that risk assessment and compliance processes remain effective within a networked framework ^[20].

The urgency for constant improvement is underscored by the rising threat of cyberattacks. For instance, ransomware attacks have surged by 264% since 2018 ^[21]. A notable example occurred in early 2024 when the BlackCat/ALPHV ransomware disrupted Change Healthcare's operations, affecting both patient care and billing processes ^[21]. Additionally, a recent survey revealed that 63% of health plan respondents have already prioritized compliance strategies for 2025 to tackle emerging challenges proactively ^[21].

Organizations should focus on identifying trends in audit findings, evaluating the success of risk mitigation strategies, and ensuring governance structures align with their goals. For example, a rising recurrence rate of audit findings could indicate that corrective actions are falling short ^[19]. By combining quantitative data with qualitative insights through regular review cycles, organizations can adapt their GRC models to better address challenges.

Using Censinet RiskOps™ for Long-Term Success

Technology plays a crucial role in operationalizing performance metrics and ensuring long-term success. Censinet RiskOps™ offers a platform that enables real-time monitoring of metrics, allowing healthcare organizations to track performance continuously instead of relying on periodic reports. For example, Tower Health reallocated three full-time employees (FTEs) to other tasks while increasing risk assessments with only two FTEs, showcasing improved efficiency through Censinet RiskOps™.

Baptist Health provides another example of how a networked approach can reduce manual inefficiencies. By collaborating with a community of hospitals through Censinet, they eliminated the need for spreadsheets and gained access to shared risk intelligence. Regular benchmarking against industry standards also helps organizations advocate for necessary resources. As Brian Sterud, CIO of Faith Regional Health, explains:

"Benchmarking against industry standards helps us advocate for the right resources and ensures we are leading where it matters" ^[22].

Censinet’s AI capabilities further enhance efficiency by automating assessments and uncovering patterns that manual reviews might miss. With Censinet AI™, vendors can complete security questionnaires quickly, with evidence automatically summarized for review. This ensures that the networked GRC model remains agile and responsive to evolving cybersecurity threats.

Conclusion: The Future of GRC in Healthcare

Shifting from traditional, pipeline-based governance, risk, and compliance (GRC) systems to a networked approach is reshaping how healthcare organizations safeguard patient data, maintain compliance, and enhance operational efficiency. With 60% of healthcare organizations reporting at least one data breach or compliance issue in the past year ^[24], the need for a more dynamic and coordinated GRC strategy is undeniable.

A networked GRC model offers a major advantage: identifying and addressing risks in real time ^[23]. Considering the steep costs associated with data breaches and the widespread exposure of sensitive healthcare information, the price of inaction far outweighs the investment required to modernize.

To prepare for the future, adopting a unified GRC platform is no longer optional - it’s essential. The steps to transition include implementing an integrated platform, creating cross-departmental teams, and training staff to prioritize security in their daily workflows. These actions directly tie into the performance improvements discussed earlier in this article. As Lisa McKee, a governance, risk, compliance, and privacy expert, puts it:

"GRC is overarching. It sets the tone and the strategy; it defines the policies and the procedures and what the expectations are." ^[25]

One solution paving the way is Censinet RiskOps™, a collaborative risk network that connects over 50,000 vendors and products with more than 100 healthcare providers and payers ^[22][26]. This platform has proven its value by reducing reassessment times to less than a day on average while allowing organizations like Tower Health to reallocate full-time resources to other critical tasks ^[26][22]. As Matt Christensen from Intermountain Health emphasizes:

"Healthcare is the most complex industry... You can't just take a tool and apply it to healthcare if it wasn't built specifically for healthcare." ^[22]

The future of healthcare cybersecurity lies in recognizing GRC as more than a compliance checkbox. It’s about instilling confidence in security measures, managing risks proactively, and building frameworks that protect patient care and safety. The question isn’t whether to transition to networked GRC - it’s how quickly organizations can embrace this shift to stay ahead of growing threats and evolving regulations.

FAQs

What challenges do healthcare organizations face when shifting from a traditional GRC model to a networked approach?

Healthcare organizations face a variety of hurdles when shifting to a networked GRC model. One major challenge is dealing with outdated systems that not only heighten the risk of cybersecurity breaches but also create compliance headaches. On top of that, integrating massive amounts of data during the migration process can be a logistical nightmare, especially when resources - like time, budget, or skilled personnel - are stretched thin.

Another significant obstacle is staying aligned with rapidly evolving regulations while also improving real-time collaboration with external partners. These challenges underscore the need for a carefully thought-out strategy to ensure the transition to a networked GRC framework is both smooth and effective.

How does a networked GRC model enhance vendor and supply chain risk management in healthcare?

A networked GRC model enhances vendor and supply chain risk management by enabling real-time risk tracking, allowing for early threat detection, and promoting smooth collaboration among all involved parties. This integrated method allows healthcare organizations to pinpoint weak spots more quickly and handle risks more efficiently.

By establishing a unified system for communication and risk evaluation, this model breaks down silos, boosts cybersecurity defenses, and supports adherence to changing regulations. It's especially useful for tackling intricate issues such as vendor-related risks and supply chain security in the interconnected world of modern healthcare.

How do automation and AI improve the effectiveness of a networked GRC model in healthcare?

Automation and AI are game-changers for building a more connected GRC (Governance, Risk, and Compliance) model in healthcare. They simplify risk assessments, automate compliance processes, and sift through massive amounts of data to pinpoint vulnerabilities with speed and precision.

With real-time insights at their core, these technologies empower healthcare organizations to tackle risks proactively. By cutting down on manual work, boosting efficiency, and sharpening decision-making, automation and AI help manage vendor risks, safeguard supply chains, and stay one step ahead of ever-changing cybersecurity threats.

Related posts

• AI-Powered GRC: How Leading Organizations Are Automating Compliance in the Age of Increasing Regulation
• Integrated GRC Frameworks: Breaking Down Silos for Enhanced Organizational Resilience
• “Why Most GRC Tools Fail in Healthcare - And What Comes Next”
• “Rebooting Risk: A New Operating System for Healthcare GRC”