Governance, Risk, and Compliance

Choosing the right GRC solution involves looking closely at your organization’s specific needs and business goals, considering factors such as industry requirements, regulatory environment, organizational size, and existing processes. It’s important to have a knowledgeable partner to help understand GRC requirements from a business level, and often, firms benefit from partners who also offer managed technology services to help operationalize GRC requirements.

Implementing a GRC framework is not a one-and-done approach; it involves several key steps and can be tailored depending on the company’s requirements. In general, there are both strategic and monitoring/management facets to a robust GRC program:

1. Assessment: Evaluate current governance, risk, and compliance processes to see where there are gaps.
2. Planning: Set a roadmap for implementation. Define goals and objectives aligned with the organization’s strategic priorities.
3. Selection: Choose a GRC framework that fits the organizational needs and goals.
4. Integration: Integrate the framework with existing processes and systems.
5. Training: Train key staff in the new processes and (possible)tools.
6. Monitoring: Establish a system for monitoring performance, adherence, and compliance to adjust practices as needed and possibly reinforce training.
7. Continuous Improvement: Find new areas to refine, add, or improve the performance of the GRC program.

Popular GRC frameworks include

• the COSO Framework for Enterprise Risk Management,
• the ISO 31000 standard for Risk Management, and
• the COBIT framework for managing IT governance and risk.

These frameworks provide structured approaches for organizations to manage risk, comply with regulations, and effectively achieve governance objectives.

GRC is a key facet of modern business operations. It is essential for companies that face regulatory requirements and is becoming increasingly important for planning cybersecurity investments (understanding and managing risk), and cyber insurance requirements. It also is important for companies that must adhere to specific frameworks and standards (like SOC2) for doing business as a supplier.

Small to medium-sized businesses must often start from the basics since policies and procedures may not be in place or followed systematically. Companies may also have inadequate systems in place to easily and accurately report against compliance mandates. Finally, companies may struggle to assess and understand the risks they face and how to mitigate and manage risk. These companies often require outside expertise to help navigate and implement GRC programs.

Governance, Risk, and Compliance (GRC) systems provide a holistic approach tied to business considerations to help companies manage risk and comply with specific industry regulatory requirements. GRC systems vary by company to reflect the specific needs around things like policies and procedures, risk tolerance profile, and the necessary compliance-related adherence and reporting.