2021 Trends: Governance, Risk Management & Compliance (GRC)



An Integrated Focus on Business Integrity & Resiliency

The interconnectedness of objectives, risks, resiliency, and integrity require 360° contextual awareness of integrated governance, risk management, and compliance (GRC). Organizations in 2021 need to see the intricate relationships of objectives, risks, obligations, commitments, and controls across the enterprise. It requires holistic visibility and intelligence of risk in the context of objectives. The complexity of business – combined with the intricacy and interconnectedness of risk and objectives – necessitates that the organization implements integrated governance, risk management, and compliance (GRC) management strategy.

2020 brought organizations lots of disruption to objectives, operations, and employees. What started with devastating wildfires in Australia moved into a global pandemic that shut down the world and its various borders. Then, racial tensions and a focus on discrimination led to reevaluating policies and conduct rules within the organization and across relationships. Followed by more wildfires in California, disrupting businesses. And the year concluded with significant political turmoil, controversies, and a security breach in a third-party context for the history books with the SolarWinds breach. Throughout all of this was a risk and economic rollercoaster. 2020 taught us that to reliably achieve objectives, manage uncertainty, and act with integrity requires a 360° view of governance, risk management, and compliance within the organization and across its relationships.

The world of business in 2021 is distributed, dynamic, and disrupted. It is distributed and interconnected across a web of business relationships with stakeholders, clients, and third parties. It is dynamic as the business changes day-by-day. Processes change, employees change, relationships change, regulations and risks change, and objectives change. It is disrupted, 2020 was the poster child for business and third-party disruption that rolls into 2021. The ecosystem of business objectives, uncertainty/risk, and integrity is complex, interconnected, and requires a holistic contextual awareness of GRC – rather than a dissociated collection of processes and departments. Change in one area has cascading effects that impact the entire ecosystem.

This interconnectedness of business is driving demand for 360° contextual awareness in the organization’s GRC processes to reliably achieve objectives, address uncertainty, and act with integrity. Organizations need to see the intricate intersection of objectives, risks, and boundaries across the business. Gone are the years of simplicity in operations. Exponential growth and change in risks, regulations, globalization, distributed operations, competitive velocity, technology, and business data impedes the ability of the business to be agile in times of uncertainty. The elements of distributed, dynamic, and disrupted business are driving significant changes in GRC strategies in organizations in 2021. In addressing governance, risk management, and compliance, GRC 20/20 is observing three strategic trends organizations are focusing on in 2021.

Have a question about GRC strategies or solutions for GRC available in the market?

Table of Contents

  • An Integrated Focus on Business Integrity & Resiliency
  • What Have GRC Functions Learned from 2020?
    • Interconnected risk
    • Objectives became dynamic
    • Disruption
    • Dependency on others
    • Dynamic and agile business
  • What Can GRC Functions Expect in 2021
    • Three Strategic Trends in GRC in 2021
      • Integrity
      • Resiliency
      • Integration
  • Supporting Tactical GRC Trends in 2021
    • Maturing risk management
    • Policy management and regulatory change
    • Compliance and ethics management
    • Employee engagement and culture
    • Compliance and defensibility.
    • ESG reporting
    • Privacy
    • Information Security
    • Accountability Regimes
    • Third-Party GRC/Risk Management
    • Environmental
    • Health and Safety
    • Greater Assurance
    • GRC Technology
  • GRC 20/20’s Final Perspective
  • About GRC 20/20 Research, LLC
  • Research Methodology

©GRC 20/20 Research, LLC. All Rights Reserved.