“Why GRC Is the Last Legacy System in Healthcare - and How to Replace It”

Healthcare organizations are heavily reliant on outdated Governance, Risk, and Compliance (GRC) systems, which fail to address modern cybersecurity threats, regulatory complexities, and operational inefficiencies. These legacy systems are costly to maintain, increase vulnerability to cyberattacks, and hinder compliance efforts.

Key Points:

• Cybersecurity Risks: 83% of healthcare providers have experienced data breaches in the past two years, exposing millions of patient records.
• Regulatory Challenges: Legacy GRC systems struggle to keep pace with evolving regulations like HIPAA, leading to penalties and inefficiencies.
• High Costs: Maintaining these systems can cost millions annually, diverting resources from critical healthcare functions.
• Modern Solutions: Platforms like Censinet RiskOps™ offer real-time risk monitoring, automation, and centralized management to address these issues.

Why It Matters: With cyberattacks on healthcare systems increasing and regulations growing more complex, replacing outdated GRC systems with modern, AI-powered platforms is essential to protect patient data, reduce costs, and improve efficiency. The time to act is now.

The Future of GRC in Healthcare

Problems with Current GRC Systems in Healthcare

Legacy GRC systems in healthcare are falling short in critical areas, leaving organizations exposed to modern threats and bogged down by outdated processes. Alarmingly, over 90% of healthcare organizations faced a cyberattack last year, with 70% reporting disruptions in patient care ^[2]. These numbers highlight the urgent need for systems that can keep up with today’s challenges. Let’s break down where traditional systems are failing.

Cannot Handle Modern Cyber Threats

Legacy systems were built for a time when cyber threats were far less complex. They struggle to combat modern dangers like ransomware, phishing, and data breaches. Instead of actively detecting threats, these systems merely document risks. They lack essential modern features such as multi-factor authentication (MFA), advanced encryption, and real-time data sharing. Without automated updates, they leave organizations vulnerable to evolving cyberattacks ^[3].

Data Silos and No Real-Time Information

Traditional GRC systems often operate in isolation, creating data silos that disrupt workflows and increase compliance risks. This fragmented approach makes it harder to manage risks effectively, leading to financial losses, legal troubles, and damage to reputation ^[7]. In fact, 58% of organizations report at least one security breach each year due to compliance failures ^[5]. These silos not only hinder risk management but also amplify the compliance challenges discussed below.

Compliance Tracking Falls Behind Regulations

As healthcare regulations grow more complex, outdated GRC systems fail to keep up. They rely on outdated methods that lead to inconsistent policy implementation and operational inefficiencies. This leaves organizations vulnerable to regulatory scrutiny and financial penalties ^[8]. For instance, civil monetary penalties for False Claims Act violations are set to rise in 2025, with minimum and maximum fines reaching $14,308 and $28,619 per claim, respectively ^[9]. Manual processes and spreadsheets simply can’t handle the precision and speed required to track compliance effectively. These inefficiencies not only increase risks but also divert resources away from strategic priorities. In 2023 alone, over 133 million healthcare records were exposed due to data breaches ^[10].

Too Much Manual Work for Limited Staff

The healthcare sector is already grappling with a significant shortage of cybersecurity professionals, and legacy GRC systems only make things worse. These systems demand time-consuming manual tasks like data entry, report generation, and system maintenance - tasks that pull experts away from critical activities like threat detection and response. The financial toll is staggering, with the average cost of maintaining a single legacy system hitting $30 million annually. Across industries, $1.14 trillion is spent each year on maintaining outdated IT investments ^[4]. Additionally, organizations have seen a 23% decline in their mainframe workforce over the past five years, with 63% of those positions remaining vacant ^[4]. This staffing gap leaves businesses more vulnerable, as 36% of global organizations report increased security risks due to outdated systems ^[4]. The financial consequences are equally severe: the average cost of a data breach in the U.S. has climbed to $9.36 million, and between 2014 and 2022, breaches at government agencies cost $26 billion ^[3].

Healthcare organizations can no longer afford to rely on outdated systems. The combination of increasingly complex cyber threats, stricter regulations, and staffing shortages demands a fresh approach to how GRC systems are designed and implemented.

What Modern Healthcare Risk Management Needs

Healthcare organizations can no longer rely on outdated systems. With increasingly sophisticated threats, evolving regulations, and the high stakes of patient safety and data security, a modern approach to risk management is essential. Here’s how healthcare can rise to the challenge.

AI-Powered Risk Assessment and Automation

Traditional systems, which depend on static rules, struggle to keep up with today’s fast-evolving threats. This is where artificial intelligence (AI) steps in, transforming how healthcare organizations detect and respond to risks. Unlike older methods, AI continuously learns and adapts, identifying new attack patterns in real time. This is critical in a landscape where phishing attacks surged by over 250% and ransomware incidents jumped by 165.38% in 2022 ^[11].

AI doesn’t just improve detection - it also slashes response times. Security teams often face overwhelming numbers of alerts, but AI can sift through massive datasets, identify unusual activity, and prioritize genuine threats. It can even allocate resources by automatically assessing vulnerabilities, cutting incident response times by up to 70% ^[12]. For organizations grappling with staffing shortages, this is a game-changer.

On the compliance side, AI automates routine tasks like security assessments, log monitoring, and regulatory reporting, reducing administrative burdens and ensuring consistent adherence to regulations like HIPAA. AI-powered behavioral analytics also provide an extra layer of protection by monitoring user activity for signs of insider threats. This is especially vital as 56% of organizations reported at least one attack exploiting their VPNs in the past year ^[11].

Built-In Compliance and Regulatory Tracking

Keeping up with changing regulations is a constant challenge, but modern systems simplify this process by integrating compliance tracking into their core design. Unlike older methods that require extensive manual updates, these platforms automatically adapt to regulatory changes.

They monitor access to sensitive data, ensure only authorized personnel can view patient records, and maintain detailed audit trails to meet regulatory requirements. This proactive approach not only helps organizations stay compliant but also reduces the risk of costly penalties.

Automation plays a key role here, eliminating the need to manually update policies across departments. With 69% of businesses acknowledging AI as essential for cybersecurity ^[13], healthcare organizations are realizing that automated compliance isn’t just a convenience - it’s becoming indispensable.

Real-Time Monitoring and Threat Response

Proactive threat detection is no longer optional. Modern systems offer real-time monitoring, providing continuous visibility into network activity, user behavior, and system performance. This is especially crucial when ransomware attacks can cripple systems in mere minutes.

Newer platforms embrace a zero trust architecture, minimizing risks tied to traditional perimeter-based networks ^[11]. They don’t just detect threats - they respond to them in real time. Automated incident response plans can isolate infected systems, alert security teams, and initiate recovery steps, ensuring patient safety and uninterrupted care. Additionally, these systems analyze all network traffic to identify hidden risks and protect sensitive data from being stolen.

"Legacy medical devices ... do not receive manufacturer support for patches or updates, making them especially vulnerable to cyberattacks." - FBI Industry Alert ^[11]

This underscores why real-time monitoring is critical in healthcare environments filled with IoT devices and outdated medical equipment, which introduce countless vulnerabilities.

Team Collaboration and System Scalability

Legacy systems often silo data, making it difficult for teams to work together. Modern platforms address this by centralizing risk management, enabling seamless collaboration between security, compliance, and clinical teams. Centralized dashboards act like air traffic control, directing tasks and findings to the right stakeholders at the right time. This ensures continuous oversight and accountability.

Scalability is another key advantage. As healthcare organizations grow their digital operations, modern systems can handle increasing data volumes, additional users, and new compliance requirements without needing a total overhaul. They integrate smoothly with existing applications and adapt to new technologies. Real-time data aggregation in intuitive dashboards gives executives and department heads clear insights into organizational risks, aiding better decision-making and resource allocation.

Modern risk management isn’t just about implementing new tools - it’s about rethinking cybersecurity and compliance as integral parts of patient care. By embracing these advancements, healthcare organizations can protect their systems, data, and, most importantly, their patients.

How to Replace Legacy GRC: Modern Solutions

Replacing outdated GRC systems requires a clear strategy tailored to healthcare's unique challenges and strict regulatory demands. The key lies in adopting platforms specifically designed to handle the complex risk environment in healthcare. Let’s explore how modern platforms address the shortcomings of legacy GRC systems.

How Censinet RiskOps™ Solves GRC Problems

Legacy systems often fail to provide real-time insights and suffer from fragmented data, but Censinet RiskOps™ directly addresses these issues. By integrating compliance, cybersecurity, and clinical operations into one unified platform, it eliminates inefficiencies and improves risk management.

This platform connects over 100 provider and payer facilities through the Censinet Risk Network^[14], fostering shared intelligence and collaborative risk strategies. This network-based approach breaks down data silos that hinder traditional systems.

Terry Grogan, CISO at Tower Health, shared:

"Censinet RiskOps allowed 3 FTEs to go back to their real jobs! Now we do a lot more risk assessments with only 2 FTEs required."^[15]

Automation is a game-changer here. Tasks that once required manual effort, like reassessments, are now completed in under a day thanks to delta-based automation^[14]. This not only saves time but also allows teams to focus on higher-value activities.

Core Features of Censinet RiskOps™

The platform is built for continuous risk monitoring and automated workflows, ensuring it meets the fast-paced demands of healthcare. Key features include:

• Digital Risk Catalog™: Provides access to over 50,000 pre-assessed vendors, simplifying vendor evaluations.
• 1-Click Sharing: Enables instant sharing of questionnaires, cutting down repetitive tasks.
• Cybersecurity Data Room™: Maintains detailed, longitudinal risk records for better tracking^[14].

With Automated Risk Scoring, residual risk ratings are updated in real time, reflecting changes in vendor security or emerging threats. This eliminates the manual updates that are a hallmark of outdated systems^[14]. Integrated flags and filters further streamline the process, alerting teams to missing evidence or portfolio-wide risks^[14].

The platform also includes Automated Corrective Action Plans (CAPs), which provide clear, actionable steps for remediation, along with tracking tools to ensure accountability^[14]. Features like Active Portfolio Management add another layer of security by delivering breach alerts, risk tiering, and automated reassessments when a vendor's security posture changes^[14].

Legacy GRC vs. Modern Solutions Comparison

Here’s a side-by-side look at how modern platforms like Censinet RiskOps™ outperform legacy systems:

This comparison makes it clear why healthcare organizations are moving away from systems focused solely on documentation. Legacy systems often require heavy customization to fit healthcare workflows, while modern platforms like Censinet RiskOps™ offer healthcare-specific features right out of the box.

The shift from reactive compliance to proactive risk management is critical. Mike Ratliff, AVP Security Engineering and Operations at Providence, put it best:

"We didn't rebrand GRC. We replaced it. And in doing so, we're creating a program - and a team - that's ready for what's next."^[1]

This transformation is essential, especially when 62% of healthcare organizations identify themselves as "at risk", a figure significantly higher than the global average of 52%^[6]. Modern solutions like Censinet RiskOps™ are helping close that gap, ushering in a new era of efficient, proactive risk management.

sbb-itb-535baee

How US Healthcare Organizations Can Make the Switch

Transitioning from outdated GRC systems to modern platforms is no small task, especially for healthcare organizations. The process involves juggling patient safety, strict regulations, and operational demands. However, with careful planning, it's possible to upgrade risk management systems without disrupting daily operations.

Check If Your Organization Is Ready

Before diving into any changes, it's crucial to assess where your organization stands. A thorough evaluation will help identify readiness for modernization and uncover potential roadblocks.

Start with a detailed IT audit to evaluate the age, performance, and vulnerabilities of your current systems. This includes databases, applications, and any integration points with other healthcare tools ^[17]. Such an audit sets the foundation for understanding what needs to change.

Statistics show that organizations with strong change management practices are seven times more likely to achieve their objectives ^[20]. Additionally, outdated technology can be a financial drain - McKinsey estimates that by 2025, up to 40% of IT budgets will go toward maintaining legacy systems ^[19].

Decide on your modernization approach based on the state of your current systems. Options include rehosting, refactoring, rearchitecting, rebuilding, or fully replacing outdated platforms ^[17]. Also, define your integration goals: whether it's improving data flow, adding new features, or enhancing compliance ^[17].

Careful preparation ensures a smoother transition, with well-trained staff and a solid data migration plan at the core.

Train Staff and Manage the Transition

A strong focus on staff training and change management can make or break the transition. Poor planning, disengaged employees, and weak communication are major reasons why two-thirds of healthcare change projects fail ^[22].

"Tailoring training to address actual needs ensures resources are utilized effectively." - Dr. Emily Carter, Healthcare Training Specialist ^[21]

Start by identifying the specific training needs of your team. Surveys and interviews can help pinpoint gaps. Different roles will require varying levels of expertise - for example, risk management teams may need in-depth technical training, while clinical staff might only need a basic overview.

Organize joint training sessions to encourage collaboration across departments and ensure everyone understands how the new system impacts their roles. Simulation training can provide a safe space for staff to practice before the system goes live. Flexible training options, like online modules or in-person workshops, accommodate different schedules and learning styles. Mentorship programs can also help ease the transition by fostering knowledge sharing.

The Prosci ADKAR Model (Awareness, Desire, Knowledge, Ability, Reinforcement) is a helpful framework for guiding teams through complex changes, addressing both technical and human challenges ^[20].

Once your staff is ready, focus on securely migrating data and integrating systems to complete the upgrade.

Move Data and Connect Systems

Data migration is a critical part of modernizing risk management systems. In healthcare, where data is highly sensitive, errors during migration can have serious consequences for both patient safety and compliance.

Start by mapping unstructured data to standardized formats like HL7 or FHIR ^[19]. This ensures consistency and reduces the risk of quality issues. Natural Language Processing (NLP) tools can help process unstructured text, such as clinical notes, to extract key information ^[19]. At every stage, implement quality checks, validation rules, and cleansing workflows to maintain data integrity ^[19].

A phased migration approach minimizes disruptions by allowing for incremental testing ^[18]. When it comes to integration, choose methods that suit your needs - options include Enterprise Service Bus (ESB), Point-to-Point Integration (P2P), API Integration, Robotic Process Automation (RPA), or Integration Platform as a Service (iPaaS) ^[17]. Secure file transfer protocols (SFTP) are essential for safe and encrypted data transfers ^[19].

Notably, 85% of organizations that retire legacy systems and archive old data report financial benefits ^[19].

Track Risk Reduction and Compliance Results

To demonstrate the value of your new system, it's important to measure its impact. Start by establishing baseline metrics before implementation, such as:

• Time spent on risk assessments
• Number of vendors evaluated
• Compliance audit results
• Staff hours spent on manual tasks

After implementation, monitor improvements in key areas:

• Operational efficiency: Faster risk assessments, broader vendor evaluations, and quicker compliance responses
• Compliance outcomes: Easier adaptation to new regulations and smoother audits
• Staff productivity: Better resource allocation and reduced manual workload
• Risk reduction: Faster resolution of security issues and identification of high-risk vendors

Real-time automated scoring can provide immediate insights into risk levels, making it easier to stay ahead of potential issues.

To keep the system effective, continuously monitor and optimize its performance ^[17]. Regular reporting not only highlights progress but also reassures leadership and stakeholders of the system's value. Treat change management as an ongoing process to ensure your organization stays equipped to handle evolving cyber threats and compliance demands ^[20].

Conclusion: Time to Replace Legacy GRC Systems

Healthcare organizations continue to rely on outdated GRC systems that fall short in addressing today’s cybersecurity challenges. The evidence paints a stark picture: these legacy systems are draining billions from the industry and leaving patient data vulnerable.

Key Takeaways

Legacy GRC systems come with inherent flaws that make them ill-suited for the complexities of modern healthcare. Mike Ratliff, AVP of Security Engineering and Operations, puts it bluntly:

"Traditional governance, risk, and compliance (GRC) isn't aging well...It reports risk but doesn't drive it down. It tracks compliance but doesn't improve resilience. And in today's high-stakes threat landscape, that's not just ineffective - it's dangerous." ^[1]

Consider these alarming statistics: U.S. hospitals lose approximately $8.3 billion annually due to inefficiencies tied to legacy systems. Cyberattacks on healthcare organizations surged to 1,463 per week in 2022, marking a 74% jump from the previous year ^[23]. In 2024, 734 breaches exposed over 276 million health records ^[6].

The shortcomings of legacy systems are clear. They focus on documenting risks rather than mitigating them and operate in silos instead of fostering integration ^[1]. On the other hand, modern platforms like Censinet RiskOps™ take a proactive approach, emphasizing real-time threat detection, automated risk reduction, and seamless integration across all risk management functions.

Organizations that have transitioned to modern GRC solutions report measurable improvements: streamlined operations, better compliance outcomes, and increased staff efficiency. These systems enable faster risk assessments, more efficient vendor evaluations, and quicker responses to compliance demands.

These insights highlight the critical need for healthcare organizations to move beyond outdated systems and adopt solutions that meet today’s challenges.

Steps to Take Now

Addressing these vulnerabilities starts with a strategic review of your current systems. Identify gaps in efficiency, compliance, and security. With 73% of U.S. healthcare providers still using legacy software ^[16][24], it’s clear this is a widespread issue - but one that demands immediate attention.

The cost of maintaining outdated systems is steep. For example, ransomware attacks cost U.S. organizations an average of $1.85 million to resolve ^[24]. Shifting those resources toward modern platforms can dramatically reduce risks instead of merely documenting them.

Modern solutions like Censinet RiskOps™ offer AI-powered tools for risk assessment, real-time monitoring, and healthcare-specific compliance tracking. These platforms address the core limitations of legacy systems while providing the scalability and integration required in today’s healthcare environment.

The real question isn’t if your organization should upgrade its GRC systems - it’s how quickly you can make the change. Every day spent relying on legacy platforms increases exposure to risk and operational inefficiencies. Modernizing your GRC approach is no longer a matter of “if” but “when.” The time to act is now.

FAQs

Why should healthcare organizations replace outdated GRC systems?

Legacy GRC Systems: Falling Behind in Healthcare

Legacy Governance, Risk, and Compliance (GRC) systems often struggle to keep pace with the demands of modern healthcare. They’re not equipped to tackle today’s sophisticated cybersecurity threats, lack compatibility with advanced tools, and come with high maintenance costs. On top of that, these systems are notoriously slow to adjust to changing regulations, putting organizations at risk of non-compliance.

Switching out these outdated systems for modern, healthcare-focused solutions can make a huge difference. New platforms bring features like AI-powered risk management, seamless integration with other tools, and real-time monitoring. These capabilities help healthcare organizations streamline operations, strengthen cybersecurity defenses, and stay compliant in an ever-changing environment.

How does Censinet RiskOps™ improve cybersecurity and compliance in healthcare?

Censinet RiskOps™ is reshaping healthcare cybersecurity and compliance with its real-time risk management, automated compliance workflows, and AI-powered analytics. These tools eliminate the need for outdated, manual governance, risk, and compliance (GRC) processes, providing a more efficient way to address modern threats and meet regulatory requirements.

With features like real-time monitoring and effortless data sharing, Censinet RiskOps™ enables healthcare organizations to spot vulnerabilities early, simplify compliance tasks, and bolster their security defenses. The result? Enhanced patient safety and alignment with ever-changing regulations.

How can healthcare organizations successfully transition from outdated GRC systems to modern solutions?

Healthcare organizations looking to move away from outdated GRC systems should start by evaluating their current setup. This means identifying weaknesses, pinpointing areas for improvement, and setting clear, actionable goals for the transition. A solid foundation begins with organizing and cleaning existing data to ensure it's accurate and ready for migration.

Taking a step-by-step approach works best. Gradually adopt modern AI-powered platforms that combine compliance, risk management, and real-time monitoring capabilities. Equally important is managing the human side of the change - train staff thoroughly, engage stakeholders throughout the process, and tackle potential issues head-on. This strategy not only simplifies the transition but also strengthens cybersecurity and keeps regulatory requirements in check.

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”