What does the initialism GRC stand for?

What does the initialism GRC stand for?
A . Governing risk and compliance
B . Governance, risk, and compliance
C . Governance, risk, and controls
D . Government, regulation, and controls

View Answer

Answer: B

Explanation:

GRC stands for Governance, Risk, and Compliance, a critical framework for organizations to ensure they operate ethically and effectively while adhering to laws, regulations, and industry standards.

Governance: Refers to the organization’s leadership, policies, and procedures that guide its activities to align with business objectives, ethical practices, and compliance requirements. Effective governance ensures strategic alignment and accountability.

Risk: Encompasses identifying, assessing, managing, and mitigating risks that could impede the organization’s objectives. This includes financial risks, operational risks, cybersecurity threats, and reputational risks.

Compliance: Involves adhering to laws, regulations, industry standards, and internal policies. Compliance ensures that the organization fulfills external and internal obligations to maintain trust and avoid legal penalties.

Reference: NIST Risk Management Framework (RMF): Emphasizes integrating GRC principles into risk assessment and management.

COSO Framework: Offers detailed guidance on governance and internal control processes.

ISO 31000 (Risk Management): Explains systematic risk management practices aligning with GRC objectives.

Compliance documentation, such as GDPR for privacy and SOX for financial controls, highlights the importance of GRC in maintaining ethical and lawful operations.