Whether you’re a CISO, CTO, or COO, you want to set up your organization for success when it comes to governance, risk, and compliance. However, there is a lot to know about GRC and the tools that can support your goals. This guide is a resource for organizations looking to learn about GRC and the solutions that can help drive efficiencies around security and compliance.
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Governance, risk, and compliance, better known as GRC, is an organization’s internal approach that encompasses three key strategies into one that aims to help achieve business objectives around an organization's information security and risk management programs.
GRC is designed to enable an organization to improve processes, manage technology, mitigate risk associated with information security. It also ensures employees partake in ethical and secure business practices, while enabling executives to make more informed decisions. GRC also promotes stronger communication across the extended enterprise.
Think of GRC as the guardrails on a highway wrapping around a mountain as you climb your way to the top. With the right GRC program, your organization can stay the course with improved processes (such as stronger communication and repeatable operations) and effective risk management all while achieving your goals with peace of mind.
Below is a quick breakdown of the three individual practices that, when working together, create the success that is GRC.
With the growth of GRC adoption, more GRC platforms are entering the market.
The global enterprise market is expected to reach $97.3 billion by 2028 (up from $39.5 billion in 2021). With GRC poised to maintain this pace, one might wonder what’s causing this rapid adoption?
One reason GRC tools have grown in popularity is the growing complexity of compliance and changing information security regulations. For some industries, such as finance and healthcare technology, regulatory requirements exist on a more varied, yet stringent scale, making GRC that much more effective for organizations that need to remain flexible and prepared for compliance changes.
Failing to comply with industry standards can lead to costly penalties, damaged business credibility, and risk to company data.
There are good reasons regulations like GDPR (General Data Protection Regulation) in the EU and CCPA (California Consumer Privacy Act) exist to protect consumer data. When an organization doesn’t comply with industry legislation, this is not only reckless, but also demonstrates a perceived lack of organizational priority to protect the data and livelihoods of its consumers, employees, and partners.
With the help of the right GRC program, organizations can streamline their compliance efforts and eliminate the likelihood of non-compliance or related financial penalties.
Cyber threats continue to rise, from ransomware to insider threats, so traditional IT measures are no longer enough to protect organizations. System vulnerabilities, employee fraud, and political tension (to name a few) are all reasons you need a unified digital approach to cybersecurity.
Ransomware attacks have increased by over 93% since the beginning of 2021, so having a GRC plan in place with the increasing risk landscape can help companies address the vulnerabilities they may face today by offering an always-on approach to cybersecurity.
Looking for a GRC provider? Get started with this free GRC Selection Tool & Checklist with preset features and a built-in scoring calculator to help you find a GRC solution with the features that matter to you.
Think of IRM as the “R” in GRC.
GRC and IRM are similar in that they both entail risk management programs, but the key difference is that GRC employs two additional components: Governance and Compliance.
IRM stands for Integrated Risk Management and consists of policies solely focused on risk management, while GRC is majorly compliance-focused, while also incorporating risk management into the mix.
According to Gartner, “IRM is a set of practices and processes supported by a risk-aware culture and enabling technologies that improve decision making and performance through an integrated view of how well an organization manages its unique set of risks.”
Having a GRC plan is an essential step for any sized company to improve its security posture.
Small and enterprise-level organizations benefit from an effective GRC program as it takes a holistic approach to risk management by interconnecting three different strategies into a single strategy to streamline processes. Organizations that keep governance, risk management, and compliance create a disconnect between departments. This creates disorganized business processes, and the potential for risk to an organization.
Here are a few reasons why your organization needs GRC: