More than a rulebook: How GRC connects IT and business goals
News, 15/05/2025
Governance, Risk & Compliance (GRC) – three terms often associated with bureaucracy, audits, and wagging fingers. But GRC can do more: properly understood, it provides a methodological framework that helps companies align their strategic, regulatory, and technological requirements.
In times of digital transformation, increasing regulatory complexity, and emerging threats, organizations are forced to act faster, more agilely, and more securely. GRC provides a unifying framework for this:
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Risks are not only controlled but identified at an early stage.
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Responsibilities are clearly defined – across teams, departments, and hierarchies.
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Innovation is not hindered, but guided meaningfully.
GRC can thus become the link between IT, risk management, corporate strategy, and day-to-day operations – provided it is not seen merely as a control mechanism, but as a shared mindset.
Three Pillars, One Goal
To make GRC truly effective, it’s worth taking a closer look at its three core dimensions:
Governance:
Responsible corporate governance is not just about committee structures – it’s reflected in everyday operations through consistent processes, clear responsibilities, and transparent decision-making paths.
Risk Management:
Effective risk management is proactive. It helps protect business assets, build resilience, and prepare for disruptions – in a structured, transparent, and adaptable way.
Compliance:
Compliance must be practical. Modern approaches are closely aligned with the business, leverage digital tools, and promote a culture of personal accountability.
GRC as Part of the Corporate DNA: Insights from Practice
Our experience shows: GRC delivers the greatest value when it is consistently embedded into day-to-day operations – structurally, systemically, and culturally. Three aspects have proven especially effective:
Differentiating role models:
The traditional Three Lines of Defense model provides a solid framework. In highly regulated environments, however, an additional “1.5 line” has proven valuable – offering operational support and acting as a bridge between the lines.
Connecting systems:
GRC becomes truly effective when it’s not confined to isolated tools or silos. We rely on integrated system landscapes where, for example, the internal control system (ICS), risk management, outsourcing, and data protection management interact seamlessly.
Supporting processes through mindset:
GRC succeeds when it’s not seen as a separate compliance construct but as an integral part of the company’s DNA. A lived error culture, shared responsibility, and regular exchange between departments form the foundation for this.
Three Reflection Questions from Practice
In our work with business units and clients, we regularly encounter key questions that highlight what truly matters for effective GRC:
How can specialists and generalists collaborate successfully?
Effective GRC models require interdisciplinary cooperation. Success factors include mutual understanding, a shared language, and open communication spaces – especially between IT, legal, business units, and leadership.
How can GRC become a business enabler beyond regulatory compliance?
GRC can have strategic impact – when early warning systems, KPIs, and structured processes are used to support decision-making and unlock new courses of action.
How can compliance become a competitive advantage?
In today’s dynamic regulatory landscape, proactive compliance can set companies apart – through digital tools, agile responsiveness, and a culture of personal accountability.
Our Impulse at the Event “Next-Generation Financial Service Providers”
We recently shared these thoughts and experiences during our workshop at the Frankfurt School of Finance and Management on May 14, 2025. Participants included specialists and executives from IT, compliance, risk management, and related areas – all with one goal: to reflect together on how GRC can be implemented effectively and made future-ready.
We thank all participants for the engaging exchange – and look forward to continuing the dialogue.
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