What is Governance, Risk & Compliance (GRC)?
GRC is an integrated approach to governance, risk management and compliance that enables an
organization to achieve its objectives while acting with integrity and within the bounds of legal and regulatory requirements across internal policies and external regulations such as Sarbanes-Oxley (SOX), HIPAA and PCI DSS.
GRC is driven by a framework that guides the activities of the organization’s leadership and operational areas – in particular internal audit, compliance, risk, legal, finance, IT, HR as well as the lines of business, executive suite and the board itself.
- Governance establishes the guide on which all GRC strategies and activities are aligned
- Risk management identifies, analyses and manages actual and potential risks that could negatively impact the organization – it involves proactively setting up controls to avoid risks and responses should a risk be realized
- Compliance describes the actions taken to conform with internal or external mandated requirements
A GRC solution enables organizations to develop, implement and manage an integrated approach to GRC – from identifying governance, risk and compliance requirements to creating, implementing and maintaining controls, managing breaches or incidents and reporting to executive and internal audit teams, and external regulators. All in an environment that supports collaboration and remote working.
Effective governance, risk and compliance solutions lead to:
- Improved decision-making
- Elimination of organizational silos, reduced duplication and fragmentation of work across departments and functions
- Reduced risk of reputational damage and or financial penalties
- Improved oversight of third party relationships
- Optimal efficiency of the limited resources in GRC teams