A good Governance Risk and Compliance framework or GRC plan is vital to a company’s survival and success in 2025, particularly in Europe, where the rules continue to evolve. The Digital Operational Resilience Act (DORA) of the EU was initiated in the first month of 2025 and increases regulations on the continued operation of businesses in the event of a cyberattack, across all industries, not just finance. Other recent requirements, such as the Markets in Crypto-Assets Regulation (MiCAR), demonstrate that GRC tools are necessary to deal with the rapidly changing legislation.
Those companies that monitor risks with the help of AI and auto-compliance reporting reveal threats earlier and resolve them earlier, which proves that the Governance Risk and Compliance framework can be useful to businesses.
The Governance Risk and Compliance framework services consist of three sections –
- Governance – Establishes executives, checks and balances, as well as policies that keep everyone accountable.
- Risk Management – Identifies, verifies, oversees, and mitigates risks such as daily hiccups, cyber attacks, monetary dilemmas, and breaking of rules.
- Compliance – Ensures that the company continues to adhere to laws, rules, and company-specific policies that are important to its business and locations of operation.
An excellent compliance governance framework becomes the foundation that keeps a company reliable and trustworthy, anticipates challenges in advance, remains lawful, and earns trust for its services in a data-driven digital environment. Firms in Europe deal with more difficult issues such as cybersecurity, data privacy, reporting ESG, and a transparent supply chain, so a GRC framework is necessary.
