GRC stands for Governance, Risk, and Compliance. It is a holistic approach that integrates three key areas of business operations. GRC frameworks aim to align IT and business strategies while ensuring risk management and compliance with laws and regulations.

Risk Management is the process of identifying, assessing, and controlling threats to an organization’s capital and earnings. These risks could stem from financial uncertainties, legal liabilities, strategic management errors, and more.

- Scope: GRC includes governance and compliance, while risk management focuses only on risk. - Purpose: GRC aims to create a unified strategy, while risk management centers on threat mitigation. - Application: GRC is cross-functional, risk management is often siloed within risk teams.

In practice, both are essential. GRC offers a broader strategic framework, while risk management provides the necessary tactical detail. Organizations benefit most when both approaches are integrated and aligned.