GRC is no longer ‘the brakes’—it’s the steering wheel of company strategy
Updated: Feb 28
At our recent events in the UK, we invited GRC expert Alan Sheahan, Head of Governance for Simply Asset Finance, to share his expertise on how modern GRC professionals impact company strategy—and he did not disappoint. Read on.
Many of us recall a time when Governance, Risk, and Compliance (GRC) teams were regarded as obstacles to progress—perceived as business prevention units, barriers to quick decision-making, and relentless enforcers of rules and regulations. Some businesses viewed GRC as an unavoidable cost, akin to having insurance: necessary, but not something they were eager to pay for. It was often difficult to articulate the tangible value GRC brought to the bottom line.
Some GRC teams sought to justify their existence by demonstrating cost savings, but the perception of GRC as a business blocker persisted. When I first entered the compliance field, my manager likened our company to a Ferrari with no brakes—fantastic at high speeds on a straight road, but dangerously unprepared for the inevitable sharp turns. Compliance, he explained, functioned as the brakes. While this analogy captured the role of risk mitigation, it did little to inspire confidence in GRC as a strategic enabler.
The evolution of GRC’s role
Historically, GRC was rarely seen as a driver of strategic planning, innovation, or corporate culture. However, today, the role has evolved significantly. Modern GRC professionals are no longer just the brakes—we are the steering wheel, the gears, the mirrors, the horn, the airbags, and the sat-nav, guiding the business through an increasingly complex landscape of risks and regulations.
Aligning regulatory compliance with an organisation’s risk appetite, strategic ambitions, and stakeholder expectations is now a fundamental part of the job. Instead of being viewed as a hindrance, GRC professionals are now instrumental in ensuring business agility, resilience, and growth.
Regulatory shifts and strategic impact
Recent regulatory developments underscore GRC’s expanding influence. For example, late last year, a Parliamentary report criticised the Financial Conduct Authority (FCA) for deep-rooted cultural problems, calling into question its effectiveness. While the future of the FCA remains uncertain, one thing is clear: regulatory oversight will not disappear, and businesses will continue to operate within a defined framework.
Regulatory changes create ripples that extend beyond compliance, impacting company reputation, operational resilience, and competitive standing. The introduction of the FCA’s Consumer Duty, for example, required businesses to reassess product offerings, customer interactions, and staff training. These shifts were not merely about compliance but about fundamentally reshaping how companies operate to ensure fair treatment of customers.
Within financial services, businesses no longer start with “how much profit can this product generate?” but instead ask, “who is our target market, and have we designed this product with their needs in mind?” This shift influences everything from product marketing to distribution, pricing structures, and complaint-handling processes. GRC professionals play a critical role in integrating compliance into every stage of product development and customer engagement.
GRC’s seat at the leadership table
To influence strategy, GRC professionals must have access to decision-makers. Fortunately, regulatory frameworks such as the Senior Managers Certification Regime (SMCR) have increased board-level accountability, making senior leaders more receptive to GRC insights.
GRC professionals are no longer just passive participants in compliance discussions; they now shape strategic agendas by running key governance meetings, preparing board reports, and ensuring that regulatory risks receive the attention they deserve. SMCR has arguably done more to elevate GRC’s profile within organisations than any other piece of regulation, providing professionals with unprecedented visibility and influence.
Culture as a strategic advantage
Corporate culture, once defined by mission statements plastered on office walls, is now a measurable factor in regulatory compliance and strategic decision-making. In the past, company values were often ignored by high-performing employees or senior executives, undermining credibility. Today, culture is a regulatory focus, influencing areas such as product design, consumer duty, and fair treatment of customers.
GRC professionals are now key players in defining and measuring corporate culture, ensuring it aligns with ethical standards and regulatory expectations. Culture is no longer just about values—it affects product strategy, market positioning, employee behaviour, and customer trust. By embedding compliance into performance reviews and business operations, GRC teams help shape a corporate culture that drives sustainable success.
The role of technology in proactive compliance
Technology is a crucial enabler of modern GRC functions. Advanced compliance platforms enhance risk tracking, regulatory reporting, and decision-making by providing real-time visibility into risk landscapes. However, technology alone is insufficient—human judgment remains critical. Even the most sophisticated systems rely on accurate data input and insightful interpretation.
At Simply, we leverage regulatory intelligence tools such as Drova’s Triage Pro module to track regulatory changes and document our response strategies. This proactive approach ensures compliance is not just a reactive function but a strategic asset that helps businesses anticipate and adapt to evolving regulations.
Turning compliance into competitive advantage
Businesses that integrate GRC into their strategic planning gain a competitive edge. Regulatory readiness signals to customers, investors, and partners that a company operates with integrity and resilience. In highly regulated industries like financial services, a strong GRC function is a differentiator, building trust and strengthening market position.
Engaging with regulatory bodies, industry associations, and peer networks provides valuable insights into emerging regulations and market trends. Active participation in these discussions allows businesses to influence regulatory frameworks and stay ahead of industry shifts. For example, ongoing dialogue with the Finance & Leasing Association has been instrumental in addressing commission disclosure issues affecting our sector.
The future of GRC: A strategic business enabler
The transformation of GRC from a compliance-driven function to a strategic enabler is undeniable. By leveraging technology, engaging with leadership, and proactively managing regulatory changes, GRC teams are driving business success rather than merely ensuring adherence to regulations.
As the regulatory landscape continues to evolve, businesses with a forward-thinking approach to GRC will be better positioned to navigate complexity, seize new opportunities, and foster long-term resilience.
At Simply Asset Finance, we view GRC not as a burden, but as an opportunity—an integral component of our strategic vision and a catalyst for sustainable growth.
Transform your GRC strategy with Drova
The evolution of GRC from a reactive function to a strategic business enabler is undeniable. Companies like Simply Asset Finance that proactively integrate compliance into their culture and strategy gain resilience, improve risk management, and enhance their market position.
Technology plays a vital role in this transformation, and Drova’s GRC software is designed to help businesses navigate regulatory complexities with confidence and turn compliance into a strategic advantage.
