What does GRC stand for in the context of risk and compliance?

In the context of risk and compliance, GRC stands for Governance, Risk, and Compliance. This term encompasses the integrated strategy for managing an organization's overall governance, enterprise risk management, and compliance with regulations and standards.

Governance refers to the frameworks and processes that ensure the organization operates effectively, adheres to laws and regulations, and accomplishes its goals. Risk relates to the potential events that could have negative impacts on the organization, and compliance involves the adherence to laws, regulations, and internal policies that govern the organization’s operations.

By integrating these three components — governance, risk, and compliance — organizations can create a holistic approach that improves decision-making, promotes accountability, and enhances their overall performance and sustainability. This unified approach is particularly critical in today's regulatory environment, where failure to comply can lead to significant penalties and reputational damage.

The other options do not accurately represent the established concept of GRC within the context of risk and compliance, which is why they are not the correct answer.