Governance, risk management, and compliance (GRC) is a relatively new corporate management system that integrates these three crucial functions into the processes of every department within an organization.

The three elements of GRC are:

• Governance, or corporate governance, is the overall system of rules, practices, and standards that guide a business.
• Risk, or enterprise risk management, is the process of identifying potential hazards to the business and acting to reduce or eliminate their financial impact.
• Compliance, or corporate compliance, is the set of processes and procedures that a company has in place in order to make certain that the company and its employees are conducting business in a legal and ethical manner.

The overall purpose of GRC is to reduce risks and costs as well as duplication of effort. It is a strategy that requires company-wide cooperation to achieve results that meet internal guidelines and processes established for each of the three key functions.

In a sound GRC complied entity, the below functions shall work hand in hand to achieve objective of the company effectively and efficiently

• Governance & Strategy
• Risk Management
• Internal Audit
• Compliance
• Ethics & Culture
• IT & Security