What is governance, risk and compliance?

Governance, risk, and compliance (GRC) is no longer a buzzword. For organisations navigating a regulatory environments, it’s the key to building resilience and achieving business goals. A strong GRC framework makes sure that governance practices, risk management strategies, and compliance programs work together. This helps protect operations and supports better decision-making.

But how can you move from a patchwork approach to a unified GRC strategy? In this guide, we will explain the main ideas of governance, risk, and compliance and the current state of it, as we found through our webinar. We will share useful tips to implement a strong GRC strategy.  

Why governance, risk, and compliance matters

A GRC framework is a structured approach that helps organisations manage risks, regulatory requirements and ensure ethical decision making. A cohesive GRC framework isn’t just about avoiding fines or penalties. It enables organisations to act with integrity, address uncertainty, and achieve long-term goals.

• Governance: Governance includes the processes, structures, and practices that guide and control an organisation. Governance is how an organisation stays on track. It’s about having clear processes, structures, and policies that guide decisions and keep everything aligned with business goals. Strong governance creates accountability, ensuring that individuals and teams know their roles and follow a set framework. Without it, decision-making becomes unclear, and risks grow.

• Risk management: Risk management isn’t limited to simply avoiding problems. It’s about being ready for them and being resilient towards them. Along with that, risk management includes spotting risks, understanding how they might affect the organisation, and taking steps to prevent them from causing harm. A strong approach to risk keeps the business stable and makes sure everyone is prepared for challenges.

• Compliance: Keeps activities in line with laws, regulations, and internal standards. Compliance is about following the rules—whether they’re set by laws, industry regulations, or your own internal policies. Regulatory compliance ensures your organisation stays within legal boundaries, avoiding fines and building trust with stakeholders.  

What is the state of Governance, Risk and Compliance today?

The GRC landscape in Europe is defined by stringent data protection regulations, rising cybersecurity risks, and shifting corporate governance standards. This evolving environment presents both challenges and opportunities for organisations working to stay compliant and resilient. SpeakUp’s recent GRC webinar explored key obstacles in GRC and how businesses are adapting. Here’s what we discovered:

Inconsistent risk management is widespread

38% of attendees from our webinar admitted their organisations lack consistent risk management processes. Without a unified framework, risks can escalate unnoticed, impacting operational continuity.

Governance needs more focus

43% of participants identified governance as the weakest link in their GRC approach. Clear roles, accountability, and transparent decision-making are vital to effective governance.

Compliance is about more than regulations

19% of organisations are striving to go beyond ticking regulatory boxes. Embedding ethical practices into compliance activities is becoming a priority.

What are the key components of a GRC framework?

To build a successful GRC framework, focus on these elements:

Early risk detection

Risks don’t appear out of nowhere—they often start as small issues that grow when ignored. Using the right tools or solutions which helps you surface risks, organisations can detect and address  before they escalate. Real-time reporting and multilingual capabilities make sure that no detail gets missed.

Data protection and internal audits

Data protection is central to GRC. Regular internal audits assess compliance with data privacy laws like GDPR, ensuring robust security measures are in place.

Workforce engagement

Employees play a critical role in governance risk management. Engaging your workforce to participate in compliance activities—like reporting risks through anonymous reporting channels—creates a culture of accountability and transparency.

Bridging the GRC Gap: Why employees hesitate to report risks

The 2024 Ethical Culture Report by Ethisphere reveals a critical gap in governance, risk, and compliance (GRC)—while 93% of employees say they would report misconduct, only 50% actually do. The reasons? Fear of retaliation and doubts about whether their concerns will lead to action.

A strong GRC framework isn't just about having policies in place; it requires psychological safety and trust. Organisations must create an environment where employees feel secure reporting risks without fear. Governance structures, risk management strategies, and compliance programs must work together to close this 'speak-up gap.'

Five steps to implement a GRC strategy  

An effective way to implement GRC starts with planned GRC strategy.

When your GRC program is siloed, inefficiencies may arise. Miscommunication, redundant processes, and a lack of transparency can lead to critical risks being overlooked.

To successfully implement a unified GRC strategy, organisations must first understand the interconnectedness of these three pillars. Each element plays a vital role in fostering a culture of accountability and transparency. Consider these steps to get started:

1. Establish clear governance structures

Start by defining roles and responsibilities within your organisation. This includes making a governance framework. This framework shows who is in charge of decisions. It also explains how these decisions match your business goals. Regularly review and update these structures to help your GRC strategy remain relevant and effective.

2. Conduct comprehensive risk assessments

Identify potential risks that could impact your organisation. This involves not simply looking at financial risks but also operational, reputational, and compliance-related risks. Use tools and methodologies to assess the likelihood and impact of these risks, and prioritise them accordingly.  

3. Focus on a speak up culture  

Compliance should be ingrained in your organisation’s culture, and that starts with a speak up culture. This means training employees on relevant laws and regulations, as well as internal policies. Encourage open communication about compliance issues and create a safe environment for reporting concerns. Solutions like SpeakUp can facilitate this by providing anonymous reporting channels.

4. Integrate technology to streamline processes

Leverage technology to streamline your GRC processes. Tools that offer real-time data analytics, reporting, and risk management can help you make informed decisions quickly. By integrating these solutions, you can create a centralised platform that enhances visibility and collaboration across departments.

5. Monitor and adapt

A unified GRC strategy is not a one-time effort; it requires ongoing monitoring and adaptation. Regularly review your governance, risk, and compliance practices so they are effective and in support of your organisation’s goals. Stay informed about changes in regulations and industry standards, and be prepared to adjust your strategy as needed.

How SpeakUp strengthens your GRC goals

At SpeakUp, we help organisations build a stronger GRC framework by providing you the tools and technologies necessary to making governance, risk management, and compliance more effective. Our solutions pave the path for compliance, legal and HR teams to identify risks, simplify workflows, and get employees to feel safe to report concerns. Here’s how SpeakUp supports your GRC goals:

• Streamlined reporting: Our AI-powered system delivers clear, accurate reports while reducing manual work. This frees up your time to focus on strengthening compliance and on the investigation at hand, instead of handling hours of admin work.
• Compliance monitoring: Stay ahead of changing laws and regulations (like EU Whistleblowing Directive, UK Workers Act 2023, GDPR) with tools designed for safe and secure reporting. Additionally, SpeakUp's confidential reporting channels tick all the boxes for international regulations.
• Workforce empowerment: Supporting 75+ languages (both human and ML translations) with easy follow up, employees are truly seen and have an effective way to share their concerns, without fear of repercussion.

The future of Governance Risk and Compliance

GRC is evolving beyond risk avoidance. It is becoming a strategic driver of growth and resilience. Organisations that move from fragmented processes to a unified GRC framework can better navigate regulatory complexities, protect against emerging risks, and foster long-term stability. The future of GRC lies in proactive strategies that enable organisations to make informed decisions, adapt to uncertainty, and strengthen stakeholder trust.