Governance, risk, and compliance (GRC)

GRC is crucial because it provides the foundation for sustainable business operations. Good governance ensures accountability and ethical behavior across leadership and teams. Risk management identifies and mitigates threats to financial, operational, and reputational stability. Compliance ensures the organization is adhering to laws, regulations, and industry standards. Together, these pillars reduce the likelihood of fines, fraud, and operational breakdowns.

Governance refers to the systems, policies, and processes by which an organization is directed and controlled. It involves everything from board oversight and strategic planning to internal controls and performance monitoring. Compliance, on the other hand, refers to the organization's ability to meet legal and regulatory obligations—whether related to data privacy, anti-money laundering, workplace safety, or financial reporting.

The most common challenges include siloed data and teams, rapidly changing regulations, and lack of visibility into risk exposure. Many organizations struggle to integrate GRC tools across departments, leading to gaps in monitoring and inconsistent practices. There’s also a growing burden on companies to comply with global standards like GDPR, CCPA, and ISO frameworks, all of which require significant investment in training and technology.