Governance, Risk Management and Compliance - GRC

AAA

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.

INVESTOPEDIA EXPLAINS '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.

RELATED TERMS
  1. Internal Audit

    The examination, monitoring and analysis of activities related ...
  2. Corporate Governance Quotient - ...

    A metric developed by Institutional Shareholder Services (ISS) ...
  3. Internal Controls

    Methods put in place by a company to ensure the integrity of ...
  4. Corporate Governance

    The system of rules, practices and processes by which a company ...
  5. Best Practices

    A set of guidelines, ethics or ideas that represent the most ...
  6. Sarbanes-Oxley Act Of 2002 - SOX

    An act passed by U.S. Congress in 2002 to protect investors from ...
RELATED FAQS
  1. What is the difference between business intelligence and business analytics?

    Business intelligence and business analytics share the same goal - to help firms make better decisions through actionable ... Read Full Answer >>
  2. Who is the counterparty of a derivative?

    The counterparty to a derivative is the party who takes the other side of the trade. Every derivative trade needs to have ... Read Full Answer >>
  3. What is affected by the interest rate risk?

    Interest rate risk is the risk that arises when the absolute level of interest rates fluctuate. Interest rate risk directly ... Read Full Answer >>
  4. How can derivatives be used for risk management?

    Derivatives could be used in risk management by hedging a position to protect against the risk of an adverse move in an asset. ... Read Full Answer >>
  5. How does duration impact bond funds?

    Duration measures the sensitivity of bond funds to changes in interest rates. A higher duration means that the fund has a ... Read Full Answer >>
  6. What percent of capital should banks hold relative to its risk weighted assets?

    As of 2015, banks are required to hold 4.5% of common equity of risk-weighted assets under the provisions of the Basel III ... Read Full Answer >>
Related Articles
  1. Insurance

    Evaluating The Board Of Directors

    Corporate structure can tell you a lot about a company's potential. Learn more here.
  2. Investing Basics

    The Basics Of Corporate Structure

    CEOs, CFOs, presidents and vice presidents: learn how to tell the difference.
  3. Options & Futures

    Governance Pays

    Learn about how the way a company keeps its management in check can affect the bottom line.
  4. Trading Strategies

    The Pros & Cons Of Being A Trader On The West Coast

    There are certain benefits and drawbacks that go with being a trader on the West Coast of North America.
  5. Mutual Funds & ETFs

    Top 4 ETFs That Will Help Diversify Your Portfolio

    Seeking low cost diversification to high quality stocks and bonds? Consider these 4 ETFs.
  6. Bonds & Fixed Income

    Muni Bonds, Taxable Bonds or CDs: Which is Best?

    Here's how to tell if municipal bonds are a better investment than taxable bonds or CDs.
  7. Mutual Funds & ETFs

    Mutual Funds or ETFs: Which is Better?

    Trying to decide between a mutual fund or ETF? Here's what you need to know.
  8. Trading Strategies

    When To Follow The Crowd And When To Lose It

    Our profits ultimately depend on the misfortune of other market players.
  9. Investing

    The Case For Stocks Today

    Last week, U.S. equities advanced with the S&P 500 Index notching new records. Investors are now getting nervous with rate and currency volatility spiking.
  10. Investing

    Financial Gifts For Grads: Kindergarten To College

    If you really want to help your grad preparing for the future, consider a present that supports their long-term goals—an early start to financial planning.

You May Also Like

Hot Definitions
  1. Net Worth

    The amount by which assets exceed liabilities. Net worth is a concept applicable to individuals and businesses as a key measure ...
  2. Stop-Loss Order

    An order placed with a broker to sell a security when it reaches a certain price. A stop-loss order is designed to limit ...
  3. Covered Call

    An options strategy whereby an investor holds a long position in an asset and writes (sells) call options on that same asset ...
  4. Butterfly Spread

    A neutral option strategy combining bull and bear spreads. Butterfly spreads use four option contracts with the same expiration ...
  5. Unlevered Beta

    A type of metric that compares the risk of an unlevered company to the risk of the market. The unlevered beta is the beta ...
  6. Moving Average - MA

    A widely used indicator in technical analysis that helps smooth out price action by filtering out the “noise” from random ...
Trading Center