Enterprise governance, risk and compliance (GRC) has seen tremendous growth in the past decade. Research done by Markets and Markets suggests that the GRC, governance risk and compliance market size is likely to grow with a compound annual growth rate (CAGR) of 14.7 percent, it is expected to be 43.87 billion dollars by 2022. Enterprises are rushing to adapt GRC in their everyday functionalities to prevent silos and non-compliance issues in their management. The need for GRC is growing. However, many small-scale and even large-scale organizations are unable to understand and implement effective GRC practices. I will explain everything you need to know about governance, risk and compliance.
What is GRC?
GRC—the acronym for governance, risk and compliance—is a strategy that helps in managing the overall risk management, governance and compliance regulations for an enterprise. One can say that GRC is a structured approach to align your IT processes with business objectives, while efficiently managing risks and meeting compliance requirements. A planned strategy provides the enterprises with lots of benefits, like optimal IT investments, reduction in fragmentation of various departments and divisions, elimination of organizational silos and improved decision making to name a few.
How GRC Works?
Enterprises develop a GRC framework to provide guidance for operational management of IT functions. It helps to ensure that IT supports and enables the strategic objectives of the business. The GRC framework also specifies defined metrics that demonstrate the effectiveness of the GRC efforts of the enterprise.
There are many software options available in the market that can help streamline GRC operations. However, you should understand that GRC is more than a set of software tools. Enterprises often rely on a pre-defined framework for refining their GRC functions when they should build one from scratch. A good framework and well-designed standards provide building blocks or fundamentals for enterprises to tailor their business environment efficiently.
What Does a GRC Tool Do?
A GRC solution or tool enables an enterprise to develop and align policies and controls. It also helps in mapping these policies to compliance requirements. GRC solutions are primarily cloud-based and introduce automation for various processes to reduce complexities and increase efficiencies. Before choosing a GRC solution, you must assess your current risk analysis and controls to prepare to integrate the solutions effectively. You also need to create a good framework or strategy that involves the functioning of the entire organization.
GRC solutions available in the market differ in feature and capabilities based on the price range. You need to choose a solution that fits your budget and meets your business requirements.
Who Employs GRC And How to Successfully Implement It?
A governance, risk and compliance framework can be employed by any organization—private or public, small or large—that wants to align its business goals, stay ahead of compliance problems and manage risks effectively. GRC frameworks are not only used to meet revenue goals, but also to ensure institutional functions of research, teaching, student access and outreach to meet the needs of education efficiently. More and more educational institutions are moving toward enabling GRC in their administrative functions.
Successful implementation of a GRC framework depends on the evolution of organizational culture that supports the GRC activities. The risk management, decision making, portfolio and resource management and compliance functions that are included in the framework will never be effective if the executive leadership of the enterprise does not support cultural change.
What Are the Benefits of Implementing GRC?
Businesses today need to be more efficient, manage the complexities of operations, and focus on effective execution of their business strategies to meet revenue goals and operational objectives. GRC ensures that they are able to do this and also help in streamlining their risk management processes and governance policies. By implementing GRC in the workplace environment, you can ensure consistent communication across different departments on various platforms.
Effective implementation of GRC helps in reducing risks and provides better control of security and compliance throughout the enterprise. GRC is an integrated and unified approach that minimizes the ill effects of redundancies and silos in an organization, so you can focus on your business.