Which role is typically responsible for defining the scope of risks in GRC?

The role typically responsible for defining the scope of risks in Governance, Risk, and Compliance (GRC) is the Risk Owner. The Risk Owner has the authority and accountability for managing specific risks within the organization. This individual identifies potential risks, assesses their impact and likelihood, and determines the risk tolerance level. By doing so, the Risk Owner sets clear boundaries and context for which risks need to be addressed and mitigated.

Understanding the scope of risks is essential for effective risk management and involves collaborating with various stakeholders to derive a comprehensive view of what risks exist, how they interrelate, and their implications for organizational objectives. This proactive approach allows the Risk Owner to implement appropriate risk treatment strategies and ensure alignment with the organization's overall risk management framework.

While other roles, such as Compliance Officers, Control Owners, and Regulatory Analysts, play important parts in the GRC landscape, their primary functions do not typically include the overall definition and ownership of risk scope. Compliance Officers focus on adhering to regulations, Control Owners manage specific controls to mitigate known risks, and Regulatory Analysts concentrate on understanding and implementing relevant regulations.