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A Basics Guide To GRC - Governance, Risk Management, And Compliance

What Is GRC?

GRC stands short for Governance, Risk Management, and Compliance. It generally refers to the ability that will help an organization achieve its goals and targets with the responsibility running across the entire office equally.

GRC is a set of practices and processes that run across the various departments and functions. Although not mandatory, it may be enabled by a dedicated platform and other tools or software. Most organizations or companies have a team dedicated to handling the GRC platform and tools while some organizations do not need a GRC department as such.


 What Is The Scope Of GRC?

The scope of GRC is not just pertained to its definition that says Governance Risk and Compliance, but also incorporates assurance and performance management. However, in practice, the scope of GRC is further extended to quality management, information security management, business management, and ethics and value management.

However, to be able to understand GRC in a better way, one must know the various dimensions of a business that are described as follows.

An enterprise will have a business, IT, and support functions such as HR, finance, legal, administration, procurement, marketing, audit, and so on.


They are required to conduct business, including strategies, policies, procedures, standards, organizational structure, roles and responsibilities, processes, people, information, technology, physical, financial and intellectual assets, and third parties (suppliers, vendors, and contract employees).

Business Attributes

Performance: Includes targets, objectives, goals, outcomes, profitability, and SLAs, etc.

Risk: Includes financial risk, credit risk, market risk, strategy risk, reputation risk, operational risk, fraud risk, information security risk, technology risk, and compliance risk, etc.

Compliance: Including regulatory compliance (SOX, PCI/DSS, GDPR), legal compliance (labor laws), security (human, physical and information security), organizational compliance (policies and standards), quality, ethics and values

Governance, Management, and Operations

Governance involves setting directions, optimizing the risks and resources. Further, it also consists of monitoring performance and compliance to achieve the organization’s objectives. This can be broadly classified into corporate governance, IT governance, business governance, and legal governance.

Management involves the process of planning, organizing, leading, coordinating, controlling and reporting.

Operations include executing the process and function.


To realize value from the business, the resources should be utilized effectively and efficiently, and the business attributes should be optimized. And this is only possible when the controls are implemented and executed are appropriate. The controls can be classified as process controls, management controls, physical controls, and technical controls. Restrictions are applied to both the resources as well as the attributes.



Independent assurance is required to ensure that all the controls are designed and are operating effectively, and the compliance requirements are met consistently. It is the responsibility of the government department to monitor and obtain assurance. It will be primarily through audits. There are several types of reviews such as internal and external audits, financial audits, certification audits, IT audits, process audits, compliance audits, and security audits, and so on.

How Does GRC Work?

Organizations develop a GRC framework or platform for the organization, leadership, and operation of the organization’s IT (Information Technology) areas to ensure that they work towards achieving the organization’s strategic objectives. The platform clearly mentions the measurable that show the effectiveness of the GRC efforts in the organization. 

Many enterprises go to a Cyber Security Consultant for their GRC requirements. Organizations can customize or tailor the frameworks and standards as per their company’s functions or fit their environment. 

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