Why Most GRC Programs Fall Short, And How to Build One That Actually Works

Corporate leaders often believe their Governance, Risk, and Compliance (GRC) program is solid, only to discover gaps during an audit or crisis. Policies are scattered, accountability is unclear, and reporting is a time-consuming burden.

The impact of inadequate GRC can be catastrophic. For instance, the 2015 Volkswagen emissions scandal resulted in over $30 billion in losses and the CEO’s resignation. Similarly, the 2016 Wells Fargo fake accounts scandal caused severe reputational damage, fines, and the downfall of its CEO. These failures show how a fragmented GRC program can lead to financial ruin and destroy trust.

As regulations tighten and client demands grow, CISOs, CIOs, and compliance leaders face immense pressure. A fragmented GRC framework is too slow to keep up with business and evolving threats. Many organizations are reevaluating their GRC approach after audit fatigue, failed controls, and compliance struggles.

The good news: GRC doesn’t have to be a burden. When designed well, it becomes a driver of alignment, transparency, and operational confidence.

Here’s what often goes wrong and how to fix it.

Where GRC Programs Commonly Fail

Manual Tools Create Chaos

A common trend in GRC programs is the initial reliance on manual tools like Excel and shared drives, with the belief that they will be sufficient. Over time, however, this approach leads to fragmented data, poor version control, and a lack of real-time visibility. As collaboration becomes more difficult and scalability becomes a challenge, organizations find it harder to maintain efficiency. Without a dedicated platform, they become increasingly vulnerable to errors and delays.

Framework Confusion

Imagine a healthcare company unsure whether they need to comply with HIPAA or GDPR, or both. As a result, they waste time and resources duplicating efforts across different compliance frameworks, while missing key requirements along the way. This confusion not only exposes them to potential security breaches but also increases their risk of failing an audit or facing regulatory penalties. It becomes much harder for them to maintain a secure and compliant environment when they’re unsure of which standards apply to them.

Unclear Ownership

Unclear ownership occurs when roles and responsibilities for compliance tasks are not clearly defined or communicated. This often results in missed deadlines, incomplete documentation, and failed audits, as no one is held accountable. Without clear task ownership, critical activities are easily overlooked, leading to delays, confusion, and increased compliance risk.

Limited Reporting

Relying on static documents like spreadsheets or PDFs for compliance reporting severely limits an organization’s ability to track progress in real-time. This lack of dynamic reporting means leadership has to make decisions without an up-to-date picture of the organization’s compliance posture. As a result, organizations are forced to operate in the dark, unable to act swiftly on emerging risks or compliance gaps.

Lack of Automation

The absence of automation in GRC processes means manual handling of critical tasks such as policy approvals, control testing, and exception management. This not only slows down the workflow but also increases the potential for human error. Without automated processes, businesses face inefficiencies, delayed responses, and missed risks, making it difficult to keep pace with compliance requirements and emerging threats.

What a Strong GRC Program Looks Like

1. Start with a Clear Framework Strategy

The first step in building an effective cybersecurity or compliance program is to identify which frameworks are relevant to your organization.

• Identify relevant frameworks based on your industry, operational geography, client obligations, and regulatory mandates.

• Review your business model and legal obligations

• Engage stakeholders in Security, Legal, HR, and IT

Framework mapping sets the stage for everything else.

2. Break Frameworks into Actionable Controls

Once relevant frameworks are identified, the next critical step is translating high-level standards into specific, actionable, and testable controls. This process provides:

• Clear understanding of requirements.

• Traceability to relevant regulations or identified risks.

• Readiness for automation in monitoring and reporting. Additionally, aim to align controls to prevent redundant or overlapping measures, which can lead to inefficiencies.

For additional ideas and suggestions on how to make controls work for you, please visit our blog post here.

3. Automate Where It Matters Most

Modern GRC platforms (like ServiceNow GRC or AuditBoard) streamline core tasks such as:

• Control testing with automated data pulls

• Policy distribution and attestation tracking

• Exception handling with built-in workflows

• Integration with cloud platforms for continuous monitoring

Automation not only saves time, it also reduces risk.

4. Assign Clear Ownership

Effective Governance, Risk, and Compliance (GRC) programs rely on clearly defined ownership of tasks and controls. By assigning specific responsibilities, organizations can ensure that every aspect of GRC is managed efficiently and on schedule. A good GRC tool can help by:

• Assigning roles and deadlines

• Sending automated reminders

• Tracking progress in real time

• Escalating overdue items

• Maintaining an audit trail

5. Build Visibility into Daily Operations

Leadership needs clear, actionable insights, not just static spreadsheets. Effective GRC reporting provides: 

• Real-time dashboards 

• Centralized Documentation

• Automated Workflows

• Exportable Reports

• Visual Summaries

Final Thoughts

Too often, GRC is treated as a once-a-year compliance activity. In reality, it’s an ongoing process that connects strategy, risk, and execution.

By building a scalable GRC foundation, with clear ownership, smart automation, and real-time visibility, organizations don’t just meet compliance requirements. They become more resilient, more efficient, and more trusted by clients, auditors, and stakeholders alike.

If this is an area your team is navigating, we’re always open to sharing what’s worked in real-world engagements.