7 GRC Myths Debunked

Introduction

Over two decades have passed since the term ‘governance, risk, and compliance’ (GRC) entered the business lexicon. Initially considered a nice-to-have, countless organizations have benefited from a deeper understanding of risks, a robust framework of controls, and a solid foundation of governance mechanisms. Yet, several myths around GRC continue to persist.

Let’s put some of them to rest here.

Myth 1: GRC is Only for Large Organizations in Heavily Regulated Sectors

Fact: All organizations, regardless of size, need GRC to navigate an increasingly uncertain world. Risks are coming at us from all directions – be it climate change, cyberattacks, market volatilities, or geopolitical conflicts. Add on regulatory pressures and constantly evolving compliance requirements – and you have a perfect storm of GRC challenges.

To thrive – or, even survive – we have to be able to anticipate and mitigate risk events and recover quickly in case of a crisis. We need to know where our controls are lacking, and which regulatory changes require our attention. GRC enables us to do all that – which is why it isn’t just desirable, but imperative for both large and small organizations.

Myth 2: GRC Hinders Business Agility, Slowing Down Processes and Stifling Innovation

Fact: On the contrary, if GRC is done right, it can actually enhance business agility. It enables us to foresee and respond to the risks and opportunities ahead in a way that drives growth and transformation.

Take the example of a global IT services leader that optimized business performance through a deeper understanding of its risks. Each risk is mapped to performance objectives and strategic goals. So, at a glance, stakeholders can accurately predict performance and revenue across various projects and business units. With a comprehensive picture of risk impact and control effectiveness, the board and executive team can make confident decisions that drive profitability and growth.

Myth 3: GRC is Only About Compliance

Fact: While compliance is a crucial component of GRC, it isn’t the sole focus. Being compliant doesn’t guarantee immunity against risk events. You might think your organization is safe if, for example, you’re fully compliant with cybersecurity regulations. But cyber threats are constantly evolving, often outpacing regulatory measures. So, if you’re too narrowly focused on compliance, you might not see the broader threats and attack surfaces in your business. It’s like locking the doors of your house, but leaving the windows open for intruders to come in. 

That’s why an effective GRC approach doesn’t just emphasize compliance with periodic assessments and audits – it stresses the need for good governance and sound risk management practices. That includes implementing clear policies and codes of ethics, establishing accountability, and building a risk-aware culture. When these practices are combined with compliance, they do more than just protect your business – they also help you capitalize on opportunities and strengthen resilience.

Myth 4: GRC is Too Expensive to Implement

Fact: While a GRC implementation has its costs, consider them an investment rather than an expense. GRC can actually save you money in the long run by preventing costly compliance breaches, reducing the likelihood of significant risks materializing, and improving operational efficiencies. Plus, whatever your budget, you’re likely to find a GRC solution that fits. However, we need to ensure that the GRC solution is scalable and can seamlessly extend to other functions of GRC in the future. This will not only ensure data integrity but also help you save costs on managing multiple vendors, upgrades, and data integrations.

Many organizations rely on spreadsheets and manual methods for GRC, but this approach is inefficient. Employees spend hours gathering GRC information, leading to scattered insights, data inconsistencies, and delayed decision-making due to inaccessible risk intelligence.

By contrast, a connected and scalable GRC platform can give you the risk visibility and automation you need to save both time and costs. A leading health insurer enabled a 90% reduction in regulatory reporting time by connecting all its compliance processes on one platform. Meanwhile, a telco giant cut costs by 80% with automated risk and control monitoring. You too can achieve similar efficiencies with the right solutions.

Myth 5: Once Your GRC Framework is in Place, You’re Free from Risk and Compliance Issues

Fact: No GRC framework or solution can completely eliminate risks or compliance issues. However, a good one can bring your risks down to an acceptable level, and ensure that they’re within your risk appetite. An effective solution can highlight early warnings and help you take proactive measures to mitigate risks in time. Effective GRC can also help you streamline compliance with various regulations and reduce the likelihood of costly penalties.

But through it all, vigilance is essential. You don’t want to be caught off-guard by a new risk or disruption coming out of left field. Continuous risk and control monitoring is imperative to ensure that you’re always ahead of emerging risks and control issues. Regulatory change management can also go a long way towards maintaining compliance health by keeping you abreast of new compliance legislation and updates.

Myth 6: GRC Implementation is a One-Time Activity

Fact: GRC is an ongoing process, a journey that never really ends. It can’t be when regulations, risks, and business operations are constantly evolving. The risks of next year may not be the same as the risks of this year. A control that worked before may not be relevant today. Only by monitoring, adapting, and improving GRC activities regularly can you keep risks in check and enable sustainable growth.

Myth 7: GRC Technology Can Solve GRC for You

Fact: Technology can certainly support and empower you on your GRC journey, but it isn’t a silver bullet. As GRC pundit Michael Rasmussen says, “GRC is something you do, not something you buy.” Even if you have the best GRC software in the market, it won’t offer much value unless you first have clear GRC strategies, policies, processes, and taxonomies. You need well-planned GRC processes, governance structures, and a culture that values risk management and compliance practices.

Once these building blocks are in place, technology can take your GRC program to a whole new level by streamlining and automating processes. It can simplify cross-functional collaboration on GRC activities, while also pulling together and transforming GRC data into rich insights. In that sense, GRC software can be a value-enabler. But human oversight, strategic planning, and judgment are equally important.

Supercharge your GRC Efficiency and Effectiveness with MetricStream

MetricStream ConnectedGRC enables you to manage all your GRC requirements on one platform. From operational and enterprise risk management and compliance, to audits, third-party governance, cyber risk management, and ESG (environmental, social, and governance) – your end-to-end processes are connected with a unified risk and compliance view.

With ConnectedGRC, you can:

• Gain a unified view of risks across the enterprise and third-party ecosystem
• Avoid regulatory violations with systematic compliance assessments, continuous control monitoring, and regulatory change management tools
• Strengthen governance with powerful policy and procedure management solutions
• Use advanced analytics and AI to draw out timely risk and compliance intelligence
• Align GRC with industry best practices, standards, and frameworks

To learn how MetricStream can help you accelerate your GRC journey, request a personalized demo today!