Governance, Risk Management & Compliance (GRC) is an overall label for companies to implement best practices in their business and IT process to protect consumers and financial markets.
The concept began in the mid-to-late 1990s when several large publicly traded companies were found to have implemented shady practices to defraud customers, falsely report earnings and evade Federal Regulations.
As a result U.S. Senator Paul Sarbanes (D-MD) and U.S. Representative Michael G. Oxley (R-OH) sponsored a bill known as the ‘Public Company Accounting Reform and Investor Protection Act’ (in the Senate) and the ‘Corporate and Auditing Accountability and Responsibility Act’ (in the House). The bill has become affectionately known as the Sarbanes-Oxley Act or simply SOx and was signed into law in 2002. Continue reading