When Does Your Company Need a GRC Expert? 7 Tell-Tale Signs
Governance, Risk, and Compliance (GRC) expertise is often seen as a luxury reserved for large enterprises. However, many organisations reach a critical point where the absence of dedicated GRC capability becomes a significant business risk.
The GRC Tipping Point
Every growing organisation eventually faces a moment when ad-hoc compliance efforts and informal risk management no longer suffice. Recognising this tipping point early can prevent costly incidents, regulatory penalties, and reputational damage.
Sign 1: Audit Findings Are Piling Up
When internal or external audits consistently identify the same issues, or when findings remain unresolved for extended periods, it signals a systemic problem rather than isolated incidents.
- Repeat findings across multiple audit cycles
- Remediation plans that slip or never complete
- Auditors expressing concern about control environment maturity
- Increasing audit scope due to identified weaknesses
Sign 2: Regulatory Pressure Is Increasing
New regulations, enhanced enforcement, or industry-specific requirements often demand dedicated expertise to navigate effectively.
- New compliance obligations (DORA, NIS2, EU AI Act)
- Regulatory inquiries or enforcement actions
- Customer or partner compliance requirements
- Industry certifications becoming mandatory (ISO 27001, SOC 2)
Regulatory fines have increased significantly in recent years. GDPR fines alone exceeded €2 billion in 2023, with individual penalties reaching hundreds of millions.
Sign 3: Security Incidents Are Becoming More Frequent
An uptick in security incidents—whether breaches, near-misses, or policy violations— indicates that existing controls may be inadequate.
- Phishing attacks succeeding more often
- Data exposure incidents
- Third-party security issues affecting your organisation
- Employees bypassing security controls
Sign 4: The Business Is Scaling Rapidly
Growth brings complexity. What worked for a 50-person company rarely scales to 500 without deliberate governance structures.
- Entering new markets with different regulatory requirements
- Acquiring companies with different control environments
- Launching products that handle sensitive data
- Onboarding enterprise customers with security requirements
Sign 5: Key Person Dependencies Exist
When compliance knowledge resides in one or two individuals, the organisation is vulnerable to their departure, illness, or simply being overwhelmed.
- One person handles all compliance matters
- No documented processes or procedures
- Compliance activities stop when key people are unavailable
- Knowledge transfer hasn't occurred
Sign 6: Third-Party Risk Is Unmanaged
As organisations rely more on vendors, cloud services, and partners, third-party risk management becomes critical.
- No formal vendor assessment process
- Unknown data flows to third parties
- Contracts lacking security requirements
- No monitoring of vendor compliance status
Sign 7: Board or Investors Are Asking Questions
When governance becomes a board-level concern or investors start asking about risk management, it's time to professionalise your approach.
- Board requesting risk reports
- Due diligence questionnaires from investors
- Insurance applications requiring detailed security information
- Customer security assessments becoming more rigorous
The cost of hiring GRC expertise is typically far less than the cost of a significant compliance failure, data breach, or failed audit.
What a GRC Expert Brings
- Framework Knowledge: Understanding of ISO 27001, NIST, COBIT, and regulatory requirements
- Risk Perspective: Ability to identify, assess, and prioritise risks
- Process Design: Creating sustainable, scalable compliance processes
- Stakeholder Management: Translating technical risks into business language
- Audit Readiness: Preparing for and managing external assessments
Options for Accessing GRC Expertise
- Full-time hire: Best for organisations with ongoing, substantial needs
- Fractional/part-time: Cost-effective for growing companies
- Consulting engagement: Project-based support for specific initiatives
- Managed services: Outsourced compliance management
Conclusion
If you recognise several of these signs in your organisation, it's likely time to invest in dedicated GRC capability. The question isn't whether you can afford GRC expertise—it's whether you can afford the consequences of not having it.
Start by assessing your current state, identifying the most pressing gaps, and determining the right model for accessing expertise. Early investment in governance pays dividends through reduced risk, smoother audits, and enhanced stakeholder confidence.
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