What Is Governance, Risk Management, and Compliance (GRC)?
Governance, risk and compliance (GRC) refers to a integrated set of activities for managing an organization’s overall governance, enterprise risk management and compliance with regulations. GRC enable an organization to reliably achieve goals, address uncertainty, and act with integrity. Think of GRC as a structured approach to aligning processes with business objectives, while effectively managing risk and meeting compliance requirements.
Governance
- Governance is top level of company management, defines the responsibilities of key stakeholders, such as the board of directors and senior management
- Consists of the the set of policies, rules, or frameworks that a company uses to achieve its business goals.
Risk management
- Predict potential problems and minimize losses
- Making sure that any risk, threat or opportunity associated with company assets or activities is identified, addressed and assessed
- Helps businesses identify risks and find ways to remediate any that are found.
Compliance
- Making sure that organizational activities are operated in a way that meets the laws and regulations impacting those systems.
- Compliance is the act of following rules, laws, and regulations. It applies to legal and regulatory requirements set by industrial bodies and also for internal corporate policies.
- Compliance involves implementing policies and procedures to ensure that business activities comply with the respective regulations.
Impact of GRC to the company management
- GRC helps company reduce wastage, increase efficiency, reduce noncompliance risk, and share information more effectively.
- GRC means coordination of company departments
- This includes work done by departments in governance, strategy, risk, compliance, security, audit, finance, legal, IT, and HR.