What is GRC?
Governance, Risk, and Compliance (GRC) concerns how an enterprise manages risk, improves compliance, and reaches business goals.
What Does Governance, Risk, and Compliance Mean?
In 2007, GRC was first formally defined as “the integrated collection of capabilities that enable an organization to reliably achieve objectives, address uncertainty and act with integrity.”
GRC management includes compliance and risk management, corporate policies and procedures, legal matters, finance, human resources, IT, LOBs, and activities up to the actions and responsibilities of the C-suite and board of directors. To be more specific:
Corporate governance utilizes effective management and policy implementation to ensure that an organization’s activities are aligned in support of its business goals. Effective governance requires making sure vital management information reaching executives or managers is complete, accurate, and timely enough to empower proper decision-making.
It also involves providing control mechanisms, policies, and procedures that allow management decisions to be effectively and systematically executed.
Risk management means that risks or opportunities associated with an enterprise’s actions and activities are identified and addressed. Enterprise risk management, or ERM, minimizes potential damage and maximizes potential value.
The response of a given risk depends on its perceived gravity and possible impact, and can involve controlling that risk, avoiding it, or transferring it to a third party.
Effective compliance involves making sure an organization’s activities meet the regulatory and legal standards that are applicable to them, including industry and professional guidelines. This has several aspects, starting with management processes for identifying applicable requirements, such as laws, regulations, contracts, and policies.
Next steps include assessing the current state of any compliance, evaluating the risks and costs of non-compliance, then prioritizing and executing any measures needed to reach compliance.
What is a GRC system?
A coordinated Governance, Risk, and Compliance strategy can be compiled into a single GRC system to streamline and simplify the process for busy enterprises. Typical functions and operations to look for in effective GRC management tools include:
- Corporate security & cybersecurity
- Data privacy protection
Legal and legal operations
Sustainability and corporate social responsibility
- Quality management
- Corporate culture
Audit and assurance
Turning toward GRC technology
The right GRC software solutions will empower you to tackle these challenges with much greater efficiency and centralized control, replacing outmoded manual processes (and the risks inherent in them).
Best-of-breed GRC products are Cloud-based, and provide automation of a wide range of processes, content, and forms. This streamlining isn’t just convenient for GRC officers and administrators, but for employees and other users, too, helping compliance become more accessible and pervasive.
Effective GRC shouldn’t rely on technology alone, though. It also demands implementing a strategy for the entire organization that considers the processes, roles, and people involved.
A few benefits of SaaS GRC software?
- Decrease your risk of employee non-compliance with policy management tools that are easy for them to use.
- Make certain all employees stay compliant with rapidly changing regulations, regardless of their location.
- Improve operational efficiency by radically cutting the time and costs involved in executing GRC processes.
- Spend control is improved thanks to enhanced visibility and transparency in monitoring internal and external costs.
- Gain content and data governance over the capture, indexing, archival, retrieval, accessibility, delivery and retention of all business-critical information.