It’s tempting to think of Enterprise Risk Management (ERM) as the central hub of your risk program. However, stopping at ERM limits an organization's ability to fully manage risk and ensure operational resilience. The modern risk landscape demands a GRC (Governance, Risk Management, and Compliance) strategy that goes beyond traditional ERM, encompassing interconnected risks such as third-party, cyber, regulatory, and operational risk and resilience. An effective GRC program integrated across the enterprise is essential for managing not only risk but also building operational resilience.  

The Expanding Scope of GRC and the Need for Holistic Risk Management 

Risks are increasingly interconnected. Compliance, cyber threats, third-party risks, and ESG are not just isolated challenges, they’re deeply integrated into the operational fabric of organizations. A GRC program that only focuses on traditional ERM frameworks misses out on these interconnections and fails to address emerging risks effectively. To drive this point home, it’s essential to understand how risk can cascade through various layers of an organization, affecting not just business outcomes but also continuity and resilience. 

For example, data breaches caused by third parties now account for more than half of all breaches. This statistic alone demonstrates the necessity of embedding third-party risk management into your GRC program. If your organization relies solely on ERM to assess risks within internal boundaries, it is blind to external threats that may pose an even greater risk to business continuity. 

The Importance of Operational Resilience in a Volatile World 

Operational resilience must be at the heart of any comprehensive GRC strategy. In an era of rapid technological advancement and an explosion of data, risk management must be agile and resilient. New innovations like IoT, AI, and cloud computing are creating fresh opportunities. They’re also creating new vulnerabilities. Organizations need to adapt quickly to both emerging technologies and their associated risks. 

One of the key challenges for organizations today is bridging the gap between risk management and operational resilience. Risk management is often viewed as reactive and focused on mitigating damage after the fact. Operational resilience, on the other hand, is about being proactive and preparing for potential disruptions before they occur. These two functions are not mutually exclusive; in fact, they should be deeply intertwined.  

To create a seamless approach to risk detection and response, organizations must adopt a "connected GRC" strategy. This means leveraging AI-driven insights, real-time monitoring, and an integrated framework that brings together various risk disciplines, from cybersecurity and third-party risk management to business continuity and regulatory compliance. A connected GRC program enhances both risk visibility and operational resilience by ensuring that risks are managed in a holistic, enterprise-wide context. 

The velocity and volume of risks are increasing rapidly. A purely ERM-focused strategy leaves gaps in an organization’s ability to keep up with regulatory requirements, leaving it vulnerable to non-compliance, reputational damage, and fines. 

Your organization must shift from merely "managing" risks to embracing and thriving on risk. By implementing a modern, connected GRC program that spans the enterprise, you gain the ability to dynamically adjust to changing conditions, make data-driven decisions, and prepare for potential operational disruptions. 

GRC is not a destination. It’s a journey. Organizations stuck in the "point solution" phase—managing risks in silos—will struggle to keep up in today’s rapidly evolving landscape. Instead, embracing risk holistically and making it part of your strategic priorities allows you to turn risk into an advantage. You become agile and resilient, able to leverage risk for growth rather than merely trying to avoid it. 

Conclusion: The Future of Risk and Operational Resilience 

In a world filled with accelerating risks, traditional ERM is not enough. Organizations must embrace a connected GRC strategy that integrates risk management with operational resilience to remain competitive and secure. The ultimate goal of GRC is to thrive on risk by creating an agile, resilient organization. By embedding risk management into every layer of your operations — from third-party risk and cybersecurity to regulatory compliance and business continuity — you build an organization that not only survives but prospers amid volatility.  

To modernize your GRC program is to secure your future. This requires going beyond the confines of ERM. The time to act is now. The cost of inaction could be far greater than you realize. 

About Michael Rasmussen:  

Michael Rasmussen is an internationally recognized pundit on governance, risk management, and compliance (GRC) – with specific expertise on enterprise GRC strategy and processes supported by robust information and technology architectures.  With 30+ years of experience, Michael helps organizations improve GRC strategy and processes supported by the correct GRC technology architecture. This enables organizations to align GRC with the business and deliver effective, efficient, resilient, and agile capabilities to the organization.  He is a sought-after keynote speaker, author, and advisor and is noted as the “Father of GRC” — the first to define and model the GRC market in February 2002 while at Forrester. Learn more at https://grc2020.com/