Why GRC Has Become a Board-Level Technology Risk (Not an IT Problem)
For many technology-led businesses, Governance, Risk and Compliance (GRC) has historically been treated as a back-office or IT-led activity. Policies were written, audits were endured, and compliance was largely something to be dealt with once a year. That model is no longer viable.
Today, GRC has become a board-level business risk with direct implications for revenue, valuation, customer trust and personal accountability.
What Changed?
Three forces have converged:
-
Regulatory accountability has moved upwards - Regulations such as GDPR, UK NIS, FCA operational resilience and upcoming cyber reporting requirements increasingly place responsibility on senior management and directors, not just technical teams.
-
Cyber risk is now enterprise risk – Ransomware, supply chain attacks and data breaches disrupt operations, halt sales and damage brand value. These are business continuity events, not IT incidents.
-
Customers and investors now demand proof – Security questionnaires, ISO 27001, SOC 2 and supplier assurance reviews are often gatekeepers to deals, funding and partnerships.
Boards are being asked not “Are we compliant?” but “Can we evidence control, oversight and decision-making?”
The Board’s GRC Blind Spot
Many boards still rely on high-level assurances such as:
-
“We passed the audit.”
-
“IT has it covered.”
-
“We’ve never had a serious incident.”
These statements do not demonstrate risk ownership or preparedness.
Regulators and litigators increasingly look for:
-
Documented risk acceptance decisions
-
Evidence of control effectiveness
-
Board-level challenge and oversight
Without this, organisations are exposed even if they have good technical controls in place.
What Good Board-Level GRC Looks Like
Effective boards treat GRC as a management discipline, not a compliance exercise.
This includes:
-
A clear risk appetite statement approved by the board
-
A live risk register aligned to business objectives
-
Regular reporting on top cyber and compliance risks, not technical metrics
-
Ownership of risks assigned to senior leaders, not just IT
Critically, boards focus on trends, exposure and decision points – not patch levels or firewall rules.
The Strategic Payoff
When done well, board-level GRC becomes an enabler:
-
Faster enterprise sales due to stronger assurance
-
Lower insurance premiums
-
Reduced incident impact
-
Increased investor confidence
For tech companies, strong GRC maturity increasingly differentiates winners from laggards.
