Governance, risk management, and compliance (GRC) is an integrated business process that involves understanding, managing and controlling a variety of risks associated with the operations of an organization. GRC processes involve appropriate policies, practices and procedures that are designed to help protect an organization's assets, prevent or reduce mistakes and oversights, improve efficiency, and create a competitive edge.

GRC systems seek to encourage a culture of transparency within an organization, ensuring that all departments have access to the same information, and that everyone knows what is happening and what the associated risk is. The implementation of a GRC system supports both a non-interference approach, by allowing different departments to collaboratively own and manage a single set of risk management processes, and a single set of rules and regulations, and a one-direction approach, by giving decision makers with data needed to make better decisions faster.

GRC systems also support decision making that results in the organization meeting its risk and compliance objectives. Many organizations are relying increasingly on GRC systems to ensure that the organization is reflected correctly and responsibly, ensuring that all relevant stakeholders are informed and that beneficial decisions are being made.

GRC systems involve three broad components: governance, risk management and compliance. Governance is the process of setting the strategic direction and goals of the organization; risk management, assessing the positive and negative risks associated with certain actions; and compliance, ensuring the organization adheres to relevant laws and regulations, and that it's policies, procedures and practices are up to date and effective.

The purpose of GRC is to ensure that the organization is operating in an efficient, proactive, and sustainable manner. GRC systems are designed to help organizations reduce costs and improve productivity, while still enabling the organization to remain compliant with all relevant laws and regulations. Furthermore, GRC systems are designed to help manage the organization's risks, and to increase the organization's resilience in the face of potential disruptions.

At its core, GRC is a system designed to help organizations stay compliant, reduce risk, and manage operations more effectively. By providing the necessary tools and infrastructure for a holistic view of risk and compliance, GRC systems can help organizations stay al realigned with their goals, reduce their exposure to risk, and provide valuable insights necessary for informed decision making.