The Strategic Advantage of GRC-as-a-Service

Introduction

GRC-as-a-Service simply refers to outsourcing GRC functions to experts with extensive tools and threat intelligence. It is an outsourced, cloud-enabled, expert-led approach to Governance, Risk and Compliance.

When faced with the decision to outsource GRC or build a dedicated GRC department, executives often find themselves at a crossroads. This hesitation, however valid, often results in endless deliberations, yielding no concrete decision.

To simplify this process, we have explored the concept of GRC-as-a-Service, its strategic advantages, and common concerns. By the end of this article, you should be ready to decide, or at least, leaning strongly in one direction.

The Concept of GRC-as-a-Service

Before diving into GRC-as-a-Service (or GRCaaS), let’s explore the foundation it’s built on. GRCaaS derives from GRC - Governance, Risk and Compliance.

It is a coordinated or holistic framework that aligns internal policies or operations with business goals and compliance requirements.

In a cybersecurity context, the three key GRC components have specific functions.

• Governance: this refers to the cybersecurity policies and protocols that guide business operations.
• Risk: the risk management component focuses on identifying potential cyber threats, evaluating and mitigating them.
• Compliance: companies must adhere to privacy laws to avoid regulatory penalties.

Managing all these pieces internally can be complex and resource intensive. That’s where GRC-as-a-Service comes in. It allows companies to outsource Governance, Risk and Compliance functions to a third-party provider, instead of handling them in-house. Most GRC providers offer GRCaaS via cloud-based platforms. With monthly or annual subscriptions, companies gain access to integrated GRC solutions.

Instead of cloud-hosted platforms, other GRC providers offer advisory and consulting services, guiding organizations’ cybersecurity governance, risk management and compliance efforts.

The Case for GRCaaS in Cybersecurity: Strategic Benefits

Most GRC providers focus on cybersecurity governance and risk, integrating IT governance, cyber risk management, and compliance into a single, expert-driven framework.

With GRCaaS, organizations can strengthen their cybersecurity posture, without building an internal GRC framework from scratch.

We’ll now explore the strategic benefits of GRCaaS in strengthening cybersecurity.

Centralized security and risk management

GRC providers consolidate cybersecurity governance, risk management, and compliance in one single platform, ensuring centralized visibility. With this unified approach, organizations can proactively identify cybersecurity or compliance risks at a glance.

It also minimizes security gaps and redundancies by ensuring consistent standards across all GRC components.

Real-time visibility

Most GRC solutions are cloud-based, allowing for real-time updates, and live threat monitoring. They typically include reporting tools and dashboards that can be shared with stakeholders or regulatory bodies, to build trust in the organization.

Continuous compliance

Expert GRC providers automate compliance checks, ensuring clients are always in line with regulatory standards like HIPAA and GDPR. This reduces the risk of legal exposure or breaches.

Scalable security services

GRC-as-a-Service enables organizations to scale their GRC efforts up or down, according to their needs. Cloud-based GRC platforms for instance offer tiered subscription plans; clients can pay for the basic features to begin, then upgrade to handle complex data sets or changing regulatory requirements.

Expert guidance and business-aligned decisions

At its core, GRC is designed to advance business objectives. Rather than basing decisions on one metric at a time, stakeholders can leverage GRC advisory services for a holistic view of the company's trajectory. Subsequent decisions will prioritize strategic investments and resource allocation, ultimately aligning operations with long-term business goals.

Addressing Common Concerns of GRCaaS

While GRC is increasingly recognized as vital to modern business operations, organizations still approach the subject with caution.

Given that integrating governance, risk management and compliance is already complex, entrusting all those functions to a third-party adds to the concerns about privacy, cost, control and tool integration.

Below are some valid concerns about adopting GRCaaS, and how companies can address them for better cyber resilience.

• Data and privacy risks: GRC-as-a-Service involves storing and processing data on third-party platforms, therefore, many organizations fear that outsourcing GRC functions could expose sensitive information. However, reputable GRC providers employ stringent security measures such as multi-factor authentication, end-to-end encryption and continuous monitoring to stay compliant with data privacy laws.
• Cost vs ROI: GRCaaS eliminates the need for expensive on-premise infrastructure and ongoing maintenance, making it far more cost-effective to implement than an internal GRC system. This may raise concerns about hidden costs or minimal ROI. GRCaaS however, is inherently scalable. Organizations only pay for the services they need and add more features as their requirements grow. More importantly, the improved risk mitigation associated with GRC reduces costly compliance issues, ensuring measurable ROI over time.
• Integration challenges with legacy systems: Since IT environments are complex, GRC software may not always be compatible with legacy infrastructure. But with APIs and flexible connectors, providers can enable seamless integration with diverse systems. Clients can also opt for GRC providers offering advisory support and custom tools, rather than generic software solutions.
• Limited control of GRC operations: Business leaders may worry that outsourcing GRC functions means losing direct control over the process, leading to operational delays or misalignment with internal policies. But modern GRC providers typically offer real-time reporting, enabling companies to monitor and adjust their cybersecurity initiatives accordingly.

Final Thoughts on GRCaaS and Cybersecurity

From automating compliance to identifying risks, GRC-as-a-Service ensures that cybersecurity initiatives align with broader business goals. A key advantage of this framework is that any organization, regardless of size, can benefit from adopting GRCaaS. Its subscription model ensures scalable packages tailored to different needs and budgets.

Companies looking to build dedicated GRC teams from the ground up can also benefit from GRC advisory services. Providers like Paratus Cybersecurity, offer expert guidance, helping organizations design and implement a robust GRC framework.