GRC 101: Governance, Risk and Compliance
Everything you need to know about GRC in one place.
What is GRC?
The components of GRC are Governance, Risk and Compliance. These three principles work together to enable organisations to achieve their objectives, manage risk, address uncertainty and act with integrity.
Ultimately, GRC helps your company to perform at a high level, covering internal auditing, compliance, legal, finance, risk management, human resources (HR), and information technology (IT).
What does GRC mean?
Think about GRC as a corporate management system or strategy, which can now be facilitated by dedicated GRC software. So when we talk about GRC, we mean the procedures and processes in place that help your company with governance, risk management and compliance.
The meaning of GRC was first brought into being by the Open Compliance and Ethics Group (OCEG), a non-profit organisation and think tank dedicated to solving age-old problems with modern solutions.
Why is GRC compliance software important?
Because it enables organisations to create and manage regulatory compliance and internal governance.
The four main capabilities of an integrated GRC technology/software solution are:
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Compliance management
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Risk management
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Corporate governance
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Environmental, social and governance (ESG).
Let's break down the 3 key elements of GRC
01
Governance
Governance means ensuring that all activities within your company - from IT to HR - are running smoothly and aligned to support your overall goals and objectives:
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How corporate boards are made up
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How information is disclosed
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How you gather and share data
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How you communicate with key stakeholders
With a strong governance strategy, you can act quickly, manage risk, respond to a changing market and maximise value for investors.
02
Risk
Risk means overall risk management and security – anything from cyber security breaches to natural disasters:
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Identifying risks
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Assessing risks
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Managing risks.
With a GRC strategy in place and internal auditing, these risks can be managed, both internally and externally to your company, to make sure that you’re tracking with your overall goals and objectives.
03
Compliance
The compliance element refers to your company’s alignment with and adherence to relevant laws and regulations.
As well as legal mandates like privacy and environmental laws, you might also have internal policies and procedures, which also fall under the umbrella of compliance.
The best way to implement GRC
In a rapidly changing business environment, not to mention the increasing speed of globalisation and digital technologies, it’s important to be ready to tackle any challenges ahead.
Looking to implement a GRC strategy in your company? Here’s where to start:
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Clear communication – make sure everyone is on board.
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Define objectives – what are your company’s goals and objectives?
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Create a streamlined set of processes to address governance, risk and compliance issues.
An effective GRC strategy will help your company’s internal workings feel more organised, cohesive and efficient. Other benefits include:
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Reduced costs
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Fast and easy access to information
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High quality and accuracy of information.
