GRC stands for Governance, Risk Management, and Compliance — a catchall term that refers to a company's integrated strategy for tackling the broad issues of corporate governance, enterprise risk management (ERM), and corporate compliance. Let's take a closer look at each.
Governance involves the internal management processes that enable effective decision-making at all levels of an organization. These decisions are critical to driving an organization's progress toward achieving its goals; therefore it's critical that accurate, complete, and relevant guidelines are established and communicated so employees can be as productive as possible, whatever their function or specific aims.
This is where GRC software comes in. It helps top management create, implement, and track decision-making throughout their organization, all in one place.
Every organization faces risks. They're bound to be different from company to company: a supplier might go out of business, a new law could affect data-collection processes, or an economic downturn could upend capital markets. Whatever the risks may be, it's critical that they're identified, tracked, and mitigated as effectively and comprehensively as possible. It's up to management to drive a culture of risk management throughout their organizations — and set acceptable enterprise risk thresholds so potential threats can be addressed promptly.
GRC solutions help organizations put these tracking and response protocols in place.
Every industry is subject to its own collection of rules, regulations, and best practices that affect how business is conducted. Companies and organizations must follow the standards that pertain to their industries or face the consequences, which can involve fines, disbarment, lost revenue, or worse. Compliance is a company's internal process for conforming with external rules and regulations, allowing it to continue pursuing its goals.
A good governance, risk, and compliance software solution will help with the entire spectrum of compliance, from identifying the right rules, to keeping tabs on program effectiveness, to change management when regulations shift.