What is GRC and why do you need it?
What is GRC?
GRC is the integrated collection of capabilities that enable an organization to reliably achieve objectives, address uncertainty and act with integrity
GRC as an acronym denotes GOVERNANCE, RISK, and COMPLIANCE — but the full story of GRC is so much more than those three words.
Governance, risk and compliance (GRC) refers to a strategy for managing an organization’s overall governance, enterprise risk management and compliance with regulations. Think of GRC as a structured approach to aligning IT with business objectives, while effectively managing risk and meeting compliance requirements.
A well-planned GRC strategy comes with lots of benefits: improved decision-making, more optimal IT investments, elimination of silos, and reduced fragmentation among divisions and departments, to name a few.
How does GRC work?
Organizations develop a GRC framework for the leadership, organization and operation of the organization’s IT areas to ensure that they support and enable the organization’s strategic objectives. The framework specifies clearly defined measurable that shine a light on the effectiveness of an organization’s GRC efforts.
Although there are many good software options available to help streamline GRC operations, GRC is more than a set of software tools.
Many organizations consult a framework for guidance in developing and refining their GRC functions rather than creating one from scratch. Frameworks and standards provide building blocks that organizations can tailor to their environment, COBIT, COSO and ITIL are the big players in many different industries.
What is key to a successful GRC implementation?
The decision-making, resource and portfolio management, risk management, and regulatory compliance functions included in a GRC framework will not be effective unless the organization’s executive leadership really supports cultural change.
“Implementing a framework will never be successful unless the organization’s culture evolves to support GRC activities”
Who employs GRC?
GRC can be implemented by any organization – public or private, large or small – that wants to align its IT activities to its business goals, manage risk effectively and stay on top of compliance.