What is governance, risk management and compliance?

Governance, risk management and compliance (GRC) refers to an organization's strategy for dealing with the interdependencies between 3 factors listed below:

• Governance: The ethical management of an organization by its leaders in accordance with approved business plans and strategies.
• Risk management: The process by which an organization identifies, categorizes, assesses, and implements strategies to minimize risks that would impede operations and control risks that would improve operations.
• Compliance: It refers to an organization's level of adherence to the standards, regulations, and best practices mandated by the business as well as relevant governing bodies and laws.