DEFINITION of 'Governance, Risk Management and Compliance - GRC'
An integrated approach used by corporations to act in accordance with the guidelines set for each category. Governance, risk management and compliance (GRC) is not a single activity, but rather a firm-wide approach to acheiving high standards in all three overlapping categories.
BREAKING DOWN 'Governance, Risk Management and Compliance - GRC'
GRC is a relatively new term, as goverance, risk mangement and compliance are all considered "new" categories of business management. While it may be difficult to assign a specific definition to GRC, since it can mean many different things to many different businesses, it is generally accepted that GRC is an approach taken by firms to ensure they act in accordance with the self-imposed guidelines set for each category.