Governance, Risk & Compliance Technology | Q4 2024
The GRC (Governance, Risk & Compliance) Technology industry is evolving rapidly as organisations globally face complex risks, evolving regulatory landscapes, and new technological demands. Businesses find themselves at a critical point where robust GRC strategies are essential to navigating both risks and opportunities. In this report, we delve into the key trends shaping the industry.
Key trends in GRC Technology
In terms of valuations trends, the GRC Technology industry has witnessed a strong development with our GRC Tech Index notably above levels in the same period last year. The M&A market remains active, with strategic acquisitions by both industry players and financial sponsors such as nCino’s acquisition of FullCircl for $135M, Socure’s acquisition of Effectiv for $136M, and Workiva’s acquisition of Sustain.Life for $100M.
As the GRC Technology industry continues to evolve rapidly, driven by technological advancements, shifting regulatory landscapes, and macroeconomic complexities, GRC companies that stay ahead of the curve, leverage emerging trends and embrace new technology to build innovative solutions, are likely to capture significant market share and drive valuations in the coming years.
Key takeaways:
• GRC solutions have evolved from “nice-to-have” to essential “must-have” solutions with AI-driven automation accelerating the shift from reactive to predictive technology. These AI capabilities now empower GRC solutions to handle complex datasets and predict risk issues in real-time, transforming how organizations proactively manage risk and compliance.
• While the AI boom is fueling the development of new GRC technologies, it also introduces new governance challenges for organizations, both internal and external. The regulatory landscape is increasingly defined by new frameworks, adding layers of complexity for organizations striving to keep up with regulations and stay compliant. Internally, challenges arise from data security, intellectual property, and the integration of new AI tools. This combination of internal and external risks drives demand for governance solutions that enhance transparency and provide stronger control mechanisms.
• Cybersecurity has become an escalating concern for organisations with rising threats prompting record spending on data protection and risk management strategies, leading to investment in GRC technology that integrate cybersecurity measures within broader compliance frameworks to address external and internal vulnerabilities.
• While large organisations have a track record of adapting to ESG reporting requirements, mid-sized organisations are picking up and are increasingly implementing processes and technology solutions to support GRC teams. Growing complexity, new regulations, and recent incidents lead to proactive management approaches supported by ESG risk management and monitoring solutions.
• Third party risk management has become increasingly important as reliance as well as significant business interruptions highlight the potential operational and reputational damage linked to vendor vulnerabilities. With organisations relying more and more on external partners, risk management has shifted from periodic assessments to continuous monitoring, enabling firms to identify and mitigate risk in real-time for stronger protection against potential disruptions.
For more information please see the full report available at the top of this page.
If you have any questions or would like more information on GRC trends please get in touch with one of our technology team
