The Hidden Cost of Poor GRC: How Compliance Gaps Kill Deals and Valuations
Most business leaders understand that non-compliance can lead to fines. Fewer appreciate how often weak GRC quietly destroys commercial opportunities long before regulators get involved.
In practice, the biggest cost of poor GRC is lost revenue and reduced company value.
Where Deals Go to Die
In mid-market and enterprise technology sales, compliance is now part of due diligence.
Common deal blockers include:
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Incomplete security questionnaires
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No formal risk management process
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Lack of board oversight evidence
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Weak supplier assurance
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Outdated or informal policies
Sales teams may describe these as “procurement delays”, but many deals simply stall or are lost to better-prepared competitors.
M&A and Investment Reality
During fundraising or exit events, GRC maturity is scrutinised heavily.
Red flags include:
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No ISO-aligned framework
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Undocumented risk decisions
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Reliance on individuals rather than processes
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Historic incidents with poor lessons learned
The outcome is often:
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Lower valuations
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Escrow requirements
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Delayed transactions
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Increased warranties and indemnities
All of these translate into real financial impact.
Why SMEs Underestimate the Risk
SMBs often assume GRC only matters at larger scale.
In reality:
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Regulators do not care about company size
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Attackers target smaller firms precisely because controls are weaker
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Large customers push risk down the supply chain
Waiting until “we’re bigger” is now a commercial risk in itself.
Turning GRC into a Value Driver
Forward-thinking organisations reposition GRC as:
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A sales enabler
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A valuation protector
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A resilience mechanism
This requires shifting from reactive compliance to structured, ongoing risk management aligned to business goals.
