The Risk Wheelhouse

S4E8: Beyond Binders: GRC's Radical Shift to Integrated Risk Management and Enterprise Trust

• Wheelhouse Advisors LLC • Season 4 • Episode 8

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Governance, Risk, and Compliance (GRC) has undergone a remarkable transformation. What was once the "department of no" – characterized by manual checklists, endless audits, and rooms full of binders – has evolved into a strategic verification backbone powering trust across organizations.

This radical shift positions GRC at the center of Integrated Risk Management (IRM), where policies, controls, and compliance data flow dynamically through organizations to provide real-time assurance. The market reflects this evolution, with GRC projected to grow from $12.1 billion in 2025 to $25.1 billion by 2032 – not as an unavoidable cost, but as a strategic investment that builds market-enhancing trust and enables bolder innovation.

The IRM Navigator™ Vendor Compass for Governance, Risk and Compliance - 2025 Edition reveals how modern GRC anchors the policies integration point within a framework organized around Performance, Resilience, Assurance, and Compliance (PRAC). Acting as an organizational immune system, GRC provides auditable evidence linking Enterprise Risk Management (ERM), Operational Risk Management (ORM), and Technology Risk Management (TRM) into a cohesive ecosystem where information flows seamlessly across previously siloed functions.

Selecting the right solution requires evaluating platforms on solution coverage and integration capabilities. Vendors fall into three categories – Integrators, Accelerators, and Pacesetters – aligned with an organization's position on the maturity curve from Foundational (manual processes) to Autonomous (AI-driven sensing with real-time assurance). Leadership perspectives have expanded beyond traditional risk leaders to include Legal, Finance, HR, and Data executives, all shaping requirements and demanding specific evidence types.

The future of GRC hinges on continuous assurance, robust AI governance, and seamless integration. Ask yourself: Is your organization still ticking compliance boxes, or building an adaptive, intelligent assurance system capable of navigating tomorrow's complex risk landscape? Transform your GRC function into the foundation of enterprise trust that empowers your organization to thrive amid uncertainty.



Visit www.therisktechjournal.com and www.rtj-bridge.com to learn more about the topics discussed in today's episode.

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Our YouTube channel also delivers fast, executive-ready insights on Integrated Risk Management. Explore short explainers, IRM Navigator research highlights, RiskTech Journal analysis, and conversations from The Risk Wheelhouse Podcast. We cover the issues that matter most to modern risk leaders. Every video is designed to sharpen decision making and strengthen resilience in a digital-first world. Subscribe at youtube.com/@WheelhouseAdv.


Ori Wellington:

What if the very systems designed for rules and regulations you know, the ones often seen as just a necessary burden could actually become the engine of innovation and trust for an entire organization? For years governance, risk and compliance, grc it felt like the department of no right.

Sam Jones:

Oh, absolutely.

Ori Wellington:

All those manual checklists, the endless audits. I remember one client they literally had a room full of binders just for compliance stuff.

Sam Jones:

That's a perfect image. Binders and spreadsheets.

Ori Wellington:

Exactly. But today we're going to unpack how GRC is undergoing this really radical transformation. It's becoming the verification backbone of something even bigger integrated risk management, or IRM.

Sam Jones:

That's right. The shift is monumental. While you'll still hear GRC discussed in terms of audits and policies, the conversation has dramatically shifted from those physical binders and reactive gotcha audits.

Ori Wellington:

Right.

Sam Jones:

Our deep dive today. It's based on the 2025 IRM Navigator, vendor Compass for Governance, risk and Compliance Report by Wheelhouse Advisors, and it really reveals GRC as a truly strategic asset. Strategic, okay, yeah, it's about how policies, controls and compliance data now flow dynamically through an organization, providing real-time assurance to leadership and building measurable trust with stakeholders.

Ori Wellington:

So our mission for you today is to cut through any lingering jargon, really show you not just what GRC is now, but why this evolution truly matters. We'll explore how it fits into that broader IRM landscape, what capabilities are absolutely non-negotiable for modern businesses and how leaders are actually using it to navigate everything from cutting-edge AI governance to complex sustainability disclosures.

Sam Jones:

It touches everything.

Ori Wellington:

Get ready for some genuine aha moments. I think that will redefine your understanding of risk and compliance.

Sam Jones:

We'll do it.

Ori Wellington:

Okay, let's dive right into this transformation, then. The report makes it abundantly clear GRC is no longer just about record keeping. It's truly shifted, hasn't it, from being a back office function to something front and center.

Sam Jones:

Absolutely front and center, and what's truly fascinating here is the sheer scale and complexity driving this evolution.

Ori Wellington:

Tell us about that. What are the big drivers?

Sam Jones:

Well, the report highlights escalating regulatory demands, and these are global, now much more complex. There's also the convergence of assurance requirements across different regions. You can't just satisfy one regulator anymore.

Ori Wellington:

Makes sense.

Sam Jones:

And there's a growing executive need, a real demand for evidence-based oversight. Boards want proof.

Ori Wellington:

Proof, not just promises.

Sam Jones:

Exactly. Think about the intense pressures around, say, AI governance. That's huge right now.

Ori Wellington:

Oh yeah.

Sam Jones:

Critical sustainability disclosures, esg reporting and cyber resilience Always cyber resilience. These aren't just IT or legal issues anymore. They're enterprise wide challenges demanding an integrated response.

Ori Wellington:

And these aren't just abstract ideas floating around. There's real financial muscle behind this shift. The report tells us the broader IRM market is projected to skyrocket.

Sam Jones:

Numbers are staggering.

Ori Wellington:

Right From $61.6 billion in 2025 to a whopping $147.0 billion by 2032. There's a compound annual growth rate of what 13.2 percent 13.2 percent, huge growth. And GRC itself. It accounts for a significant chunk of that an estimated $12.1 billion in 2025, forecasted to reach $25.1 billion by 2032.

Sam Jones:

Still growing strong at 11.1% CAGR.

Ori Wellington:

That's serious growth, showing how vital it's become. But you know, those aren't just big numbers. They speak to a fundamental shift in how organizations value risk and compliance. Expert. What does this massive financial growth really signal? Is it just an unavoidable cost or is it a strategic investment now?

Sam Jones:

It's definitely the latter. It's strategic. What we're seeing is a market recognizing that effective GRC isn't just about avoiding penalties anymore, it's about unlocking competitive advantage. It's building trust that drives market cap, allows for bolder innovation. Honestly, the cost of not investing is what's truly skyrocketing now.

Ori Wellington:

That's a great point.

Sam Jones:

Precisely. But despite that growth, grc's share of the total IRM market is expected to slightly decline, actually from about 19.5 percent down to 17.0 percent.

Ori Wellington:

OK, wait, growing fast, but its share is declining. How does that work?

Sam Jones:

Yeah, it sounds counterintuitive, but it isn't a negative sign for GRC. It reflects a larger structural shift. The market is moving away from sort of compliance-first siloed investments towards more integrated, ai-enabled resilience and assurance across the board.

Ori Wellington:

So the whole pie is getting much bigger and other areas, like maybe AI, risk or operational resilience tech, are growing even faster, pulling up the average.

Sam Jones:

Exactly. The whole IRM space is expanding rapidly. As John A Wheeler, the founder of Wheelhouse Advisors, puts it, and I think this sums it up nicely modern GRC earns its place when assurance and compliance data flows upward to the board, across operations and into technology signals.

Ori Wellington:

Integration, that's the key word.

Sam Jones:

That's the integration standard we're talking about. It has to connect.

Ori Wellington:

So the big takeaway for you listening is that GRC platforms are now the verification backbone, the sort of central truth source for integrated risk management.

Sam Jones:

That's a good way to put it. Verification backbone.

Ori Wellington:

Their ability to connect policies and controls with actual enterprise objectives is absolutely essential now for navigating regulatory scrutiny, building resilience. It's a complete flip from that grudging expense to being an engine that genuinely fuels enterprise trust.

Sam Jones:

Couldn't agree more.

Ori Wellington:

I found this next part particularly illuminating. If GRC is now our verification backbone, how does it physically connect to the wider nervous system of integrated risk management?

Sam Jones:

Right, how does it plug in?

Ori Wellington:

Yeah, the report's IRM navigigator model offers this brilliant framework for understanding that architecture. Can you walk us through its core structure?

Sam Jones:

Absolutely so. If we connect this to the bigger picture, the IRM Navigator model gives us a blueprint for this integration. It organizes everything around four core enterprise objectives performance, resilience, assurance and compliance, or PRAs.

Ori Wellington:

P-A-Z.

Sam Jones:

Think of PRAs as the ultimate goals, the outcomes you want for any healthy organization.

Ori Wellington:

Performance, resilience, assurance, compliance, got it.

Sam Jones:

These goals are then activated through four key integration points goals, processes, assets and policies.

Ori Wellington:

Goals processes assets policies.

Sam Jones:

And this is where GRC steps in. It specifically anchors the policies integration point.

Ori Wellington:

Okay, grc anchors policies, but doesn't that risk making it seem like it's still just about documents and rules, maybe? How does it shed that older perception within this IRM framework?

Sam Jones:

That's a really crucial distinction to make. While policies are foundational, yes, GRC's role here is to make those policies living documents, not spatic ones.

Ori Wellington:

Living documents how so?

Sam Jones:

Think of GRC as maybe the immune system for your entire organization's integrated risk management.

Ori Wellington:

Okay, interesting analogy.

Sam Jones:

Just as your immune system verifies threats and defends your body, grc provides the auditable evidence, the verified passports. If you will, that link all your risk management efforts. That means across enterprise risk management ERM, operational risk management ORM and technology risk management TRM.

Ori Wellington:

Ah, linking them all together.

Sam Jones:

Exactly Linking them to accountable policies, certifiable controls and reliable disclosures. So, for example, your ERM efforts, the ones aimed at strategic risks for the board.

Ori Wellington:

Right the big picture stuff.

Sam Jones:

They consume GRC outputs for that board confidence and disclosures and certifications. Your ORM teams focused on daily operations.

Ori Wellington:

Keeping the lights on.

Sam Jones:

They leverage GRC control data to strengthen those processes, improve resilience against disruptions and TRM, which handles your technology and cyber risks.

Ori Wellington:

Increasingly critical.

Sam Jones:

They integrate GRC attestations for validating those controls. This is especially crucial with complex things like AI governance challenges. Grc provides the proof it's working.

Ori Wellington:

That's incredibly clear. Now. Grc is the central nervous system, or maybe the circulatory system, ensuring consistent, verifiable information flows to all the other risk functions, providing that stamp of legitimacy.

Sam Jones:

That's it. It ensures integrity across the system.

Ori Wellington:

And the report notes that the boundaries between these IRM segments ERM, orm, trm, grc and even risk management consulting, rnc they're becoming increasingly permeable. There's a clear shift towards unified cross-domain orchestration.

Sam Jones:

Yeah, the silos are breaking down, or at least they need to be.

Ori Wellington:

You simply can't have one truly effective function without the others anymore. It's all interconnected.

Sam Jones:

Absolutely. Integration is key.

Ori Wellington:

Okay, so understanding GRC's evolved role is one thing.

Sam Jones:

Yeah.

Ori Wellington:

But for many of you listening, the real question becomes how do I choose the right solution in this complex landscape?

Sam Jones:

That's the practical challenge, isn't it?

Ori Wellington:

Thankfully the report doesn't just theorize. It offers a practical vendor compass to guide that decision. How does it simplify this evaluation?

Sam Jones:

Well, this raises an important question about how you assess value and what's a rapidly changing market. The vendor compass evaluates GRC platforms along two primary dimensions.

Ori Wellington:

Okay, two dimensions. What are they?

Sam Jones:

First solution coverage. This is basically the breadth and depth of core GRC functionality. Things like obligation management, control, testing, audit management, ethics, reporting, disclosure, reporting the basics, but done well.

Ori Wellington:

The what it does.

Sam Jones:

Exactly. The second dimension is level of integration. This focuses on how deeply the platform connects that assurance data across the broader IRM framework.

Ori Wellington:

How well it connects.

Sam Jones:

Precisely. This includes critical capabilities like interoperability with ERM, orm and TRM systems. It includes continuous control, monitoring or CCM.

Ori Wellington:

CCM. Tell me more about that. Sounds important.

Sam Jones:

Oh, it is. Think of CCM as moving from, say, a quarterly audit snapshot to a live, always-on diagnostic system for your policies and controls.

Ori Wellington:

Like a real-time health check.

Sam Jones:

Exactly Catching issues as they happen not months later in an audit, and robust support for AI governance is also part of that integration measure. Now.

Ori Wellington:

Gotcha. So it's not just what the platform does, but how well it connects to everything else. And based on these two dimensions coverage and integration vendors fall into three categories integrators, accelerators and pace setters.

Sam Jones:

That's right.

Ori Wellington:

Can you give us a quick overview of who these players are, sort of the flavor of each category?

Sam Jones:

Certainly so. Integrators these typically have extensive coverage and a proven ability to integrate across multiple IRM domains. They're usually best for organizations already at the extended stage of maturity. We'll talk about maturity next.

Ori Wellington:

Okay, the big comprehensive players.

Sam Jones:

Right. Think of vendors like Archer Audit Board, risk Connect and OneTrust in this space. Then you have accelerators.

Ori Wellington:

Accelerators.

Sam Jones:

These demonstrate real innovation and strong momentum, maybe in selected GRC areas, but they're moving fast. They often serve as great entry points for rapid maturity gains.

Ori Wellington:

Good for catching up or focusing.

Sam Jones:

Yeah, they typically fit embedded or coordinated maturity programs. Examples here would include Corporater, Diligent, MetricStream, NAVX, SAI360, ServiceNow and Workiva.

Ori Wellington:

Okay, and the third group.

Sam Jones:

Pacesetters. These tend to offer narrower scope or maybe targeted depth in specific areas. They're often well-suited for the mid-market or for specialized use cases, but generally have more limited, broader IRM integration capabilities.

Ori Wellington:

today, so more focused solutions.

Sam Jones:

Exactly. They align well with foundational or coordinated maturity levels. Think of LogicGate, onspring ProcessUnity Resolver and Origami Risk in this category.

Ori Wellington:

And you mentioned, these categories connect directly to the IRM Navigator Maturity Curve. This curve describes how organizations evolve from those siloed spreadsheet-driven practices towards autonomous assurance.

Sam Jones:

Right. It maps the journey.

Ori Wellington:

What are the key stages on that journey for you, the listener, to be aware of?

Sam Jones:

Yeah, the curve outlines five critical stages of evolution. It starts with one foundational. This is where many still are, unfortunately, Manual siloed, often heavily spreadsheet driven processes, Very reactive. Binder land, binder land, exactly. Stage two is coordinated. Here data starts to centralize, maybe in a single system, but workflows are still quite fragmented across departments.

Ori Wellington:

Getting organized, but not connected.

Sam Jones:

Pretty much Stage three is embedded. This is where risk and compliance thinking starts to integrate more deeply with operational systems. You see early continuous control monitoring starting to emerge here.

Ori Wellington:

Things are starting to talk to each other.

Sam Jones:

Right Stage four is extended. This is a big leap here. Taxonomies, risk language and platforms are shared across internal functions and even sometimes with third parties. Grc data flows reliably into ERM dashboards, orm resilience routines, trm telemetry.

Ori Wellington:

Real integration happening.

Sam Jones:

Yes, and organizations at this stage. They expect measurable outcomes like significantly shorter audit cycles, faster reporting, disclosure-ready evidence packs on demand.

Ori Wellington:

Value becomes tangible.

Sam Jones:

Definitely. And finally, stage five, the ultimate stage, is autonomous. This is the future state, really AI-driven sensing, continuous control, testing, automated mitigation, where possible, with near real-time assurance. This includes sophisticated AI governance becoming baked in. Well, moving from spreadsheet chaos to that sort of supercomputer assurance we talked about earlier, that's the vision, but the report emphasizes something important True maturity isn't just about the system you buy.

Ori Wellington:

It's more than tech.

Sam Jones:

Much more. It's about a mindset with. The report calls integrated risk thinking that focuses on cross-functional integration, proactive management, enterprise-wide ownership and adaptability.

Ori Wellington:

Culture eats strategy right always that autonomous stage sounds incredibly powerful, but, as we know, platforms don't implement themselves. People do.

Sam Jones:

People process technology, in that order.

Ori Wellington:

So who are the key leadership personas driving and influencing these GRC decisions, and how does understanding their perspectives affect your approach when you're selecting solutions.

Sam Jones:

That's such a critical point. The report identifies the primary buyers the usual suspects, if you like the chief compliance officer, cco, the chief audit executive, cae, the chief risk officer, cro, and the chief information security officer, cso. They often hold the budget.

Ori Wellington:

Okay, the core risk and compliance leaders.

Sam Jones:

But there's a broader circle of really powerful influencers. Now Think about the chief legal officer, clo. The chief financial officer, cfo, demanding reliable numbers. The chief human resources officer, chro, concerned with ethics and conduct.

Ori Wellington:

Right Risk touches everyone's domain.

Sam Jones:

And increasingly the chief data officer, cdo, especially with the complexities around AI governance and data privacy. These leaders don't just passively consume GRC outputs. They actively shape requirements. They demand specific kinds of evidence.

Ori Wellington:

So GRC becomes their common ground.

Sam Jones:

Exactly Imagine the CLO ensuring regulatory compliance, while the CDO is focused on ethical AI usage. Grc becomes the common operating language, the sort of neutral territory where these diverse needs get translated into unified policies and verifiable actions.

Ori Wellington:

So understanding their individual pain points and priorities is absolutely key.

Sam Jones:

It's essential for selecting a GRC solution that truly serves the entire enterprise, not just one department.

Ori Wellington:

This implies that for you, the listener, understanding who needs what from GRC is just as vital as comparing feature lists.

Sam Jones:

Absolutely. Context is everything.

Ori Wellington:

And the report offers very specific guidance, doesn't it, for different types of organizations trying to navigate this landscape.

Sam Jones:

It does, it gets quite practical For large enterprises. The guidance is pretty clear Favor those integrator vendors for true unification across complex global operations.

Ori Wellington:

Go big for big challenges.

Sam Jones:

Right Demand-proven cross domain integration. Rigorously evaluate reporting and disclosure capabilities that's key for investor confidence and scrutinize AI governance. Readiness with a fine-tooth comb.

Ori Wellington:

Which vendors stand out there?

Sam Jones:

Well, integrators like Archer Audit Board and OneTrust are traditionally strong here, and some accelerators like ServiceNow and Workiva are really advancing rapidly in their AI governance capabilities too.

Ori Wellington:

Okay, what about for small and midsize enterprises? Smes different path.

Sam Jones:

Yeah, the path often differs slightly. They might leverage accelerators like NAVX or SEI 360 for getting fast breath across core compliance and ethics needs.

Ori Wellington:

To get foundational coverage quickly.

Sam Jones:

Or they might adopt pace setters such as LogicAid or Onspring for very targeted needs like automating the internal audit function specifically, More focused approach. But crucially, SMEs should plan for scalability right from day one. Make sure the chosen platforms offer robust ATIs, a clear product roadmap for future growth, because their integrated risk needs will evolve as they grow.

Ori Wellington:

Don't pee yourself into a corner.

Sam Jones:

Exactly.

Ori Wellington:

Hang a corner, exactly.

Sam Jones:

So, whether you're a global enterprise grappling with immense complexity, or a growing SME building your foundation, the message seems consistent and powerful. Don't evaluate GRC in isolation, please don't. Its true value, its modern value, is in how well it supplies that verifiable evidence across all IRM domains, powering not just compliance but really powering trust and performance.

Ori Wellington:

That's the transformation in a nutshell. We've seen how GRC has dramatically evolved from that simple, often burdensome compliance tool, the binder room, into the strategic policies integration point of integrated risk management. Yeah, it's really no longer just about satisfying mandates from regulators.

Sam Jones:

It's proactive, not reactive.

Ori Wellington:

Exactly. It's about actively building trust, enhancing organizational resilience and fueling better performance by delivering continuous, verifiable assurance.

Sam Jones:

And this leads us beautifully to our final thought for you to ponder as you go about your day. The report emphasizes three key imperatives for the future of GRC and IRM.

Ori Wellington:

Three crucial takeaways Continuous assurance, moving beyond point-in-time checks. Ai governance is a first-class, non-negotiable requirement. And integration, integration, integration as the true measure of relevance.

Sam Jones:

If it's not integrated, it's not modern GRC.

Ori Wellington:

So the question for you is what will you do to ensure your organization's GRC isn't just ticking boxes anymore, but is truly transforming into that adaptive, intelligent assurance operating system that will be absolutely critical for navigating the complexities of tomorrow's risk landscape?

Sam Jones:

It's a journey, but a necessary one.

Ori Wellington:

The road to integrated risk excellence, it seems, begins with reframing GRC as the very foundation of enterprise trust.