What is GRC?
Governance, Risk, and Compliance (GRC) is a strategic approach to meeting organizational objectives while fulfilling compliance needs and minimizing risk. It involves a structured framework for defining policies and processes (Governance), identifying and mitigating risks (Risk Management), and ensuring adherence to laws, regulations, and internal policies (Compliance).
The acronym “GRC” was first used by Forrester analyst Michael Rasmussen in 2002.
Rasmussen, who coined the term, defined GRC as the capability to reliably achieve objectives while addressing uncertainty and acting with integrity. Between 2002 and 2024, GRC has evolved from an approach to managing internal controls over financial reporting and compliance, to becoming much broader in scope and covering various issue-specific and industry-specific adoption models.
Governance – The “G” in GRC
At the core of any GRC strategy is governance. Governance focuses on the rules, policies, and practices that guide an organization’s decision-making, ensuring that all actions align with broader goals and ethical standards.
Effective governance ensures:
- Every action aligns with the organization’s overall objectives.
- Transparency, accountability, and responsible decision-making are prioritized.
- Resources are utilized effectively and efficiently.
- Everyone understands their roles and responsibilities.
Risk Management – The “R” in GRC
Navigating uncertainty is a critical aspect of business, and risk management provides the tools to do so. Risk management strategies focus on the identification, assessment, and mitigation of risks to safeguard organizations and enhance threat preparedness.
Risk management helps navigate uncertainty by:
- Identifying potential risks: Proactively recognizing areas where things could go wrong.
- Assessing likelihood and impact: Not all risks are equal – some are more likely to occur and have a greater impact.
- Developing mitigation plans: Putting strategies in place to minimize or avoid risks altogether.
Compliance – The “C” in GRC
Compliance is about ensuring your organization meets both internal and external standards. It covers strategies for tracking and adhering to various regulations and policies while also minimizing risk and working towards achieving long-term goals.
Compliance involves:
- Following internal policies: Company-specific rules, policies and code of conduct.
- Meeting external regulations: Laws, industry standards, and regulations set by external bodies.
Data and Cyber-focused GRC
In recent years, high-profile data breaches at large organizations have compromised millions of customer records and caused serious financial, reputational and legal damage to the victim companies.
The severe penalties, legal action, and regulatory tightening that followed these breaches have propelled cyber and data-focused GRC into the spotlight.
Uber and SolarWinds Security Breaches: The Legal Consequences
High-profile breaches like those at Uber and SolarWinds serve as stark reminders of the legal implications of cybersecurity failures. This section examines the aftermath of these incidents and their impact on GRC.
Uber and SolarWinds: Recent high-profile cases that have served as cautionary tales
Uber: In 2023, Uber’s former CSO, Joseph Sullivan, was found guilty of obstruction of justice and misprision for covering up a massive data breach in 2016. This was the first time a CSO faced criminal charges for mishandling a breach.
SolarWinds: In the aftermath of the massive “Sunburst” supply chain attack in 2020, the SEC filed charges against SolarWinds and its former CISO, Tim Brown (in 2023). The SEC alleged that the company deliberately downplayed cyber risks while overstating its security practices. While most of these charges were dismissed in July 2024, CISOs and CSOs will remain legally liable going forward.
The Financial Repercussions of Breaches
Data breaches come with significant financial costs, from ransom payments to legal fees. To illustrate the continuing economic toll that these incidents take on organizations, the cost of a data breach globally and in the US has continued to increase every year since IBM’s Cost of a Data Breach report started being published. In 2024, the average cost of a data breach globally is USD 4.88M. In the US, data breaches cost companies USD 9.36M on an average.
Ransom amounts, too, are increasing. Earlier this year, an undisclosed Fortune 50 company was reported to have paid a record-breaking USD 75M in ransom to the Dark Angels gang. In addition to the ransom amount, victim organizations also need to pay to handle the incident, the costs of customer notifications and identity protection, professional fees including legal expenses, litigation settlement costs, and commission guarantees.
SEC Ruling on Cyber Incident Disclosure
On July 26, 2023, the SEC adopted rules that required registrants to disclose material cybersecurity incidents they experience and to disclose on an annual basis material information regarding their cybersecurity risk management, strategy, and governance. The incident disclosure is due four days after the registrant determines that the incident is material.
The Material Impact of Cyber Incidents
The SEC’s emphasis on assessing the materiality of a cyber incident prior to disclosure has prompted lot of organizations to come up with measurable ways to assess risk.
Consider the following factors to assess material impact of a cyber incident on a high level
- Financial Impact – Revenue Loss, Cost of Response, market valuation impact.
- Operational Disruption – Business Continuity, Data Integrity, Service Delivery
- Legal and Regulatory Compliance – Regulatory Penalties, Litigation Risk: The potential for lawsuits, Breach Notification Requirements
- Reputation and Trust – Brand Damage, Customer Trust, Stakeholder Confidence
- Strategic Impact – Competitive Advantage, Mergers and Acquisition
- Scope and Scale – Scope of Impact, Scale of Breach
Governance as a Security Function
The increasing significance of GRC is reflected in the new Govern function in the CIS Controls and NIST CSF
This year, both the CIS Critical Security Controls and the NIST Cybersecurity Framework added Govern as the sixth core cybersecurity function, in addition to the previous Identify, Protect, Detect, Respond and Recover.
The addition of Governance as a core component will enable users to identify the essential policies, procedures, and processes needed to safeguard their assets. CIS also added the asset type “Documentation” which includes Plans, Policies, Processes and Procedures.
The cross-cutting Governance function will make it easier for organizations to incorporate cybersecurity into their broader enterprise risk management strategy.
Why Integrate Governance, Risk and Compliance?
A holistic view of your cyber risk and compliance status within the larger business context
By adopting a comprehensive GRC approach, organizations can:
- Reduce risk: Effectively identify and mitigate potential threats.
- Improve compliance: Ensure adherence to regulations and standards.
- Enhance operational efficiency: Streamline processes and reduce costs.
- Protect reputation: Build trust with customers, partners, and stakeholders.
- Gain a competitive advantage: Demonstrate a strong commitment to governance, risk management, and compliance.
A Sample of What you Need to Tie Together
Creating a seamless GRC strategy requires asking the right questions. This section provides a short but essential checklist to help organizations connect the dots between governance, risk, and compliance activities.
Some questions to consider to create a continuous flow between governance, risk and compliance activities:
- What are your key business objectives?
- How could cyber-attacks hurt your bottom line?
- What regulations apply to your business?
- What are the costs of non-compliance?
- Do you use a cyber security framework?
- Is the framework aligned with other regulations?
- How do you manage, document and report on cyber risk?
- Do you quantify cyber risk? (Eg, potential ransomware costs)
Simplifying GRC – Frameworks and Tools
Leveraging cybersecurity frameworks and GRC tools can significantly simplify and streamline your organization’s Governance, Risk, and Compliance (GRC) activities. These frameworks and tools provide structured approaches and automated processes that make managing complex GRC tasks more efficient and effective.
GRC Frameworks
Frameworks such as the NIST Cybersecurity Framework (NIST CSF), CIS Critical Security Controls, and ISO 27001 offer comprehensive guidelines and best practices for managing cybersecurity risks and ensuring compliance. These frameworks are designed to be adaptable to different industries and organizational sizes, allowing you to tailor their implementation to meet your specific needs. By following a recognized framework, you can create a standardized approach to cybersecurity and GRC, ensuring that your organization remains compliant with industry regulations and is prepared to handle potential risks.
GRC Tools
GRC tools are software solutions that automate various aspects of governance, risk management, and compliance. These tools enable organizations to centralize their GRC activities, making it easier to track compliance requirements, assess risks, and implement controls. They also provide dashboards and reporting features that offer real-time visibility into your organization’s GRC status, allowing for quicker decision-making and more proactive risk management.
GRC Tool Features – What to Expect
Importance of Choosing the Right Cybersecurity GRC Tool
- Risk Management Effectiveness: The right GRC tool allows your organization to accurately identify, assess, and mitigate risks. It helps prioritize risks based on their potential impact, ensuring that critical vulnerabilities are addressed promptly. An inadequate tool may leave gaps in your risk management process, exposing your organization to potential threats.
- Regulatory Compliance: Compliance with industry regulations and standards is essential to avoid legal penalties, protect your reputation, and maintain customer trust. A robust GRC tool ensures that your organization stays compliant by automating the tracking of regulatory requirements, generating necessary reports, and providing alerts for any compliance issues.
- Operational Efficiency: Managing GRC activities manually or with disparate tools can be time-consuming and prone to errors. The right GRC tool centralizes and automates these activities, improving operational efficiency, reducing redundancy, and freeing up resources for more strategic tasks.
- Data Centralization and Visibility: A comprehensive GRC tool offers a unified platform where all GRC-related data is stored and accessible. This centralization provides a clear, real-time view of your organization’s risk and compliance posture, enabling better decision-making and faster responses to emerging threats.
- Scalability and Flexibility: As your organization grows or faces new challenges, your GRC tool should scale and adapt accordingly. Choosing the right tool ensures that it can evolve with your needs, supporting additional users, processes, and regulatory requirements without significant reconfiguration or replacement.
Key Features to Consider When Choosing a Cybersecurity GRC Tool
- Compliance Coverage: Ensure the tool covers all relevant regulatory frameworks and standards applicable to your industry, such as GDPR, HIPAA, NIST CSF, and PCI DSS. It should be able to track changes in regulations and automatically update compliance requirements.
- Risk Assessment and Management: Look for robust risk assessment capabilities that allow you to identify, evaluate, and prioritize risks. The tool should offer risk matrices, automated risk scoring, and scenario analysis to help you understand and mitigate potential threats. Ideally, the tool you choose should not just help with compliance tracking and gap assessments but also help you close the gaps identified with capabilities for tactical control implementation.
- Integration Capabilities: The tool should seamlessly integrate with your existing IT infrastructure, including security, IT, and business applications. Integration with other tools like SIEM systems, and identity management solutions, is essential for a comprehensive risk management strategy.
- Reporting and Analytics: The ability to generate detailed, customizable reports is critical. Look for a tool that offers advanced analytics, dashboards, and real-time reporting features to monitor your GRC activities, assess performance, and make data-driven decisions.
- Automation and Workflow Management: Automation is key to reducing manual effort and improving accuracy. The tool should automate routine tasks such as policy management, control assessments, incident tracking, and compliance audits. Workflow management features should enable collaboration, task delegation, and deadline tracking across teams.
- User-Friendliness and Accessibility: A GRC tool should be intuitive and easy to use, with a user-friendly interface that requires minimal training. Consider tools that offer the ability to provide control to multiple stakeholders (with strong access controls) for easy collaboration and establishing accountability.
- Vendor Support and Updates: Reliable vendor support is crucial for addressing issues, deploying updates, and ensuring the tool evolves with new threats and regulations. Consider the vendor’s reputation, the frequency of updates, and the availability of customer support.
- Customization and Flexibility: Every organization has unique needs, so the tool should allow for customization of workflows, reports, and compliance controls. Flexibility to adapt the tool to your specific processes and regulatory requirements is essential for long-term success.
- Cost and Total Value: While cost is a consideration, it’s important to evaluate the total value the tool provides. Assess whether the features, support, and scalability justify the investment. Consider the potential savings in time, reduced risk exposure, and improved compliance.
Choosing the right cybersecurity GRC tool is a strategic decision that can significantly impact your organization’s ability to manage risks and comply with regulations. By carefully considering these features and aligning them with your organization’s specific needs, you can select a tool that enhances your GRC efforts and contributes to your overall security posture.
The Next Generation of GRC Tools
To truly simplify GRC (Governance, Risk, and Compliance), organizations must integrate both strategic and tactical elements across all GRC activities. This integration ensures that the GRC approach is not only about high-level planning and policy-making but also about the actual execution and monitoring of these strategies in real-time. By combining these elements, organizations can create a more dynamic and responsive GRC framework that adapts to changing risks and compliance requirements.
Next-generation GRC tools are designed to bridge the gap between strategy and execution by providing capabilities that extend beyond traditional checklists and static reports. These tools enable organizations to:
- Track and Manage Controls: Monitor both existing controls and any new controls required to meet evolving compliance needs.
- Directly Implement Tactical Controls: Move from merely identifying compliance requirements to actively executing controls that ensure compliance, all within the same platform.
- Enable a Unified Approach: Integrate gap assessments, mitigation plans, and proof of control implementation into a single workflow, making the entire GRC process seamless and efficient.
How CYRISMA helps
CYRISMA brings together essential risk management and compliance assessment capabilities in a unified platform. Developed for organizations looking to reduce risk in a holistic, measurable and cost-effective manner, CYRISMA makes GRC simpler by providing all-round visibility into both cyber risk and evolving compliance needs.
What makes CYRISMA truly effective as a GRC tool is that in addition to assessment capabilities, it also includes the ability to implement controls to shrink compliance gaps.
Platform features include internal, external, agentless and agent-based vulnerability scans, patching for Windows-based third-party apps, sensitive data discovery in both on-prem and cloud environments, dark web monitoring, secure configuration scanning, compliance tracking and assessment, and much more. Run scans to discover, assess and mitigate risk, and assess compliance with multiple frameworks (CIS Critical Controls, NIST CSF, HIPAA, PCI DSS, Essential Eight, Cyber Essentials, Microsoft Copilot Readiness, and more.)
All features and future updates are included in the standard pricing.
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