What is Governance, Risk, And Compliance (GRC)?

Governance, Risk, and Compliance (GRC) is a strategic approach that organizations use to ensure they make informed decisions (governance), manage uncertainty and potential threats (risk), and follow both internal policies and external regulations (compliance).

Originally formalized in the early 2000s by the nonprofit Open Compliance and Ethics Group (OCEG), GRC began as a response to growing corporate scandals and the need for stronger oversight. But today, it’s much more than a concept. It has evolved into a recognized discipline, a growing job market, and even a dedicated category of software solutions. 

Why is GRC important?

GRC is important because it brings governance, Risk Management, and compliance together through structured, standardized, and organized processes. Instead of operating in isolation, these disciplines are aligned under a common strategy, which strengthens each one and benefits the organization as a whole.

This alignment addresses very real gaps. According to Swimlane’s 2023 report, 71% of organizations admit they would fail a cyber audit, and only 29% say their compliance programs consistently meet internal and external requirements. These numbers show how critical it is to move beyond fragmented efforts and toward an integrated GRC approach.

With the right strategy in place, GRC helps organizations make smarter decisions, stay aligned, reduce risks, ensure compliance, and be audit-ready — all with clear roles and structured processes that support long-term resilience.

What is GRC’s scope?

In a nutshell, GRC is a model that brings together three key disciplines: governance, Risk Management, and compliance. Let’s look at what GRC does in each of these areas.

Governance

Governance defines how decisions are made, who is accountable, and how resources are managed to meet business objectives. In the context of GRC, IT governance it’s about having a clear framework of roles, responsibilities, and policies that guide the organization’s direction.

For example, a good IT governance practice might include setting up a policy that all IT purchases go through an approval workflow. This ensures accountability, avoids shadow IT, and aligns spending with business goals. GRC supports governance by:

• Establishing clear roles and responsibilities
• Standardizing decision-making processes
• Enforcing policies across departments
• Promoting transparency and ethical behavior

“The whole point of governance is to keep you aligned with your purpose, to make sure all the things you do get you to the value proposition you’ve defined, and to help define the accepted behaviors to get you there.”

Valance Howden, Advisory Fellow at Info-Tech Research Group

Episode 97 of Ticket Volume

Risk Management

Risk Management is about identifying, assessing, and mitigating threats that could impact the organization’s operations, assets, or reputation. This includes financial, legal, operational, cybersecurity, and strategic risks.

In a GRC strategy, risk is not managed ad hoc. On the contrary (and hopefully), it’s built into everyday processes. For instance, IT teams might use asset data to detect outdated software and patch vulnerabilities before they become incidents. 

GRC supports Risk Management by:

• Providing a unified view of risks across the organization
• Helping teams prioritize risks based on impact
• Standardizing risk assessments and mitigation plans
• Ensuring that risk controls are documented and enforced

Compliance

Compliance ensures that the organization adheres to legal, regulatory, and internal requirements. This could mean following data privacy laws like GDPR, industry-specific rules like HIPAA, or internal policies such as acceptable use standards. GRC makes compliance proactive and traceable. 

For example, using software can help enforce role-based access, document changes, and provide audit trails — all critical for proving compliance. GRC supports compliance by:

• Embedding regulatory requirements into workflows
• Creating audit-ready documentation and logs
• Aligning internal policies with external obligations
• Making compliance everyone’s responsibility, not just Legal’s

How does GRC work?

For GRC to work effectively it requires a coordinated effort that brings together people, processes, and technology under a shared strategy. Here are the key elements that make GRC work:

#1: A unified framework

GRC depends on having a structured framework that connects governance, risk, and compliance efforts to the organization’s strategic goals. This framework sets the rules, roles, and responsibilities, making it clear how decisions are made, risks are managed, and compliance is achieved. 

The GRC Capability Model

One of the most widely recognized frameworks for understanding how GRC works is the GRC Capability Model, developed by OCEG. 

This model doesn’t prescribe rigid rules. Instead, it provides a flexible structure to help organizations integrate governance, risk, and compliance into day-to-day operations. It’s built around four main capabilities: 

• Learn – Understand the organization's context, objectives, culture, and obligations
• Align – Set objectives, roles, and policies that align with those obligations
• Perform – Operate in a way that manages risk and supports compliance
• Review – Monitor, audit, and improve the GRC strategy over time

The model is designed to be cross-functional and scalable, meaning it can work across departments, industries, and organization sizes. It’s not focused solely on IT, finance, or legal — it brings everything together under a unified strategy.

While the GRC Capability Model offers a solid foundation, it’s not the only path. Depending on your organization’s focus, you might also rely on frameworks like COBIT for IT governance, COSO ERM for enterprise risk, ISO 31000 or ISO 27001 for Risk and Security Management, or the NIST Cybersecurity Framework for regulatory alignment.

#2: Cross-functional collaboration

GRC only works when everyone is involved, from executives to frontline employees. Legal, IT, Finance, HR, and other departments must coordinate, share information, and act with a shared understanding of policies and risks. If GRC stays isolated in one department, gaps and inefficiencies are inevitable.

#3: Leadership support and a risk-aware culture

Senior leadership must not only endorse GRC but actively support it. When executives promote transparency, accountability, and risk awareness, it becomes part of the culture — not just a box-ticking exercise. Without leadership buy-in, GRC lacks the authority and visibility to succeed.

#4: Clear roles and responsibilities

Everyone needs to know their part in the bigger picture. This includes defining who owns risks, who approves changes, who enforces compliance, and how concerns are escalated or reported.

GRC fails when accountability is vague or scattered.

#5: The right tools and technology

Manual tracking won’t cut it. GRC needs systems that enable consistency, automation, and visibility, whether it’s for tracking assets, logging activities, enforcing workflows, or generating audit reports. Platforms like ITAM and ITSM software play a key role in enabling GRC execution.

When is the proper time to implement GRC?

There’s no universal deadline to implement a GRC strategy. But there are clear signs that your organization could benefit from one. Here are some common signs that it’s time to implement (or strengthen) a GRC program:

• You’re managing risks reactively instead of proactively — issues are only addressed after something goes wrong
• You’re struggling with compliance audits — finding the right documentation or proving controls is time-consuming
• You’re expanding into new markets or industries — bringing new regulations and expectations
• Your organization handles sensitive or regulated data — such as financial, healthcare, or customer information
• You’ve experienced a security incident or regulatory warning — and need better controls moving forward
• You rely heavily on third-party vendors — increasing your exposure to external risks
• You want to improve decision-making and accountability — and need structured processes to support it

The good news? GRC doesn’t have to be implemented overnight. Many organizations start with a few critical areas and gradually expand as the framework matures. 

GRC challenges

Implementing a GRC strategy brings clear benefits, but it also comes with a few challenges, especially at the beginning. Knowing what to expect can help you plan better and avoid common roadblocks.

#1. Lack of cross-functional alignment

One of the biggest obstacles is getting everyone on the same page. Governance, risk, and compliance often live in separate departments, and without clear communication and collaboration, efforts stay siloed and inconsistent. 

Assigning ownership, setting shared goals, and involving all key stakeholders (from IT and Legal to HR and Finance) is essential to unify the strategy.

“Get them invested completely, because they’re the ones who’ll be building your case. If they’re not sold on it, you’re not going anywhere.”

Jeevan Lobo, Vice President of Security and Governance at Citibank

Episode 53 of Ticket Volume - IT Podcast

#2. Unclear roles and responsibilities

GRC only works when everyone knows their part. If responsibilities are vague or scattered, accountability weakens and important tasks can fall through the cracks. 

That’s why it’s important to clearly define who is responsible for policies, Risk Management, compliance oversight, and issue escalation from the start.

#3. Overreliance on manual processes

Tracking risks, policies, and compliance efforts in spreadsheets or isolated documents quickly becomes unmanageable as the organization grows. 

Implementing purpose-built tools (such as ITSM, ITAM, or even dedicated GRC platforms) helps automate workflows, centralize documentation, and ensure nothing slips through the cracks. 

How to get started with the GRC process?

Getting started with GRC doesn’t have to be complicated. Here’s a simple five-step process to help you lay the foundation.

#1. Define your goals and risks

Start by identifying your organization’s main objectives and the risks that could prevent you from achieving them. This helps you prioritize where your GRC efforts should focus. 

#2. Build your GRC framework

Create the foundation. Set policies, roles, responsibilities, and processes for governance, Risk Management, and compliance. You can follow a known framework (like the GRC Capability Model or any other), or build your own based on your industry and goals.

#3. Engage key stakeholders

GRC only works with cross-functional involvement. Get buy-in from leadership and bring Legal, IT, Finance, HR, and other departments into the process early. Everyone needs to know their role and how they contribute to the bigger picture. 

#4. Select the right tools

You’ll need software that supports your GRC processes — from enforcing policies to tracking risks and documenting compliance. This could include ITSM, ITAM, or dedicated GRC platforms. We’ll dive deeper into how InvGate supports this in the next section.

#5. Monitor, review, and improve

GRC is a living system. Set up regular reviews, track performance, update risk registers and policies, and adapt as your business and regulatory environment evolve.

How can InvGate help with Governance, Risk, and Compliance

Yes, there are dedicated GRC software platforms on the market. But they’re often complex, expensive, and tailored for large enterprises with highly specialized compliance teams. 

That’s where InvGate comes in. With InvGate Asset Management and InvGate Service Management, you get all the structure, control, and visibility you need to put GRC into action, without the overhead. Using InvGate, you can:

• Maintain a centralized and accurate inventory of IT assets
• Identify and reduce risks like unauthorized software or outdated hardware
• Enforce policies through standardized workflows and approval processes
• Track changes, decisions, and access for compliance and audits
• Ensure cross-functional collaboration and accountability across departments 

Governance, Risk, and Compliance certifications

While there’s no single, universal certification for “GRC” as a whole, there are several well-respected programs that cover one or more parts of the discipline. These certifications help professionals deepen their expertise, boost credibility, and support the implementation of effective GRC strategies within their organizations.

On the organizational side, companies can’t be “GRC certified,” but they can achieve certifications in specific frameworks — like ISO 27001 or SOC 2 — that align with and support their GRC efforts. These certifications often become key components of a broader GRC program, especially in regulated industries.

Common professional certifications related to GRC:

• GRCP (GRC Professional) – Offered by OCEG, this certification focuses on integrated GRC practices and the GRC Capability Model
• CISA (Certified Information Systems Auditor) – From ISACA, it emphasizes audit, control, and assurance
• CRISC (Certified in Risk and Information Systems Control) – Also by ISACA, focused specifically on risk identification and management
• CISM (Certified Information Security Manager) – Aimed at professionals managing information security within GRC strategies
• CGEIT (Certified in the Governance of Enterprise IT) – Focuses on IT governance from an executive-level perspective
• ISO 27001 Lead Implementer or Auditor – Prepares professionals to implement or audit information security management systems
• Certified Compliance & Ethics Professional (CCEP) – Offered by SCCE, this certification focuses on corporate compliance and ethics programs

These certifications are not mandatory to implement GRC, but they provide valuable frameworks, terminology, and credibility, especially for professionals responsible for leading or supporting governance, risk, and compliance initiatives.