Expert verified Written By – PKC Desk, Edited By – Pooja, Reviewed By – Vignesh
Every business, from startups to listed companies faces strict rules, risks, and rising compliance pressure. That’s why adopting a strong GRC framework for Indian companies is non-negotiable.
Explore with us all about GRC frameworks, the most commonly used ones and how to implement them efficiently.
GRC Framework & Its Importance for Indian Businesses
Governance, Risk, and Compliance (GRC) framework is a structured and integrated approach that helps businesses :
- Governance: Establish accountability, ethical practices, and strategic alignment
- Risk Management: Identity, assesses, and mitigates threats including financial, operational, cybersecurity, etc.
- Compliance: Adherence to laws (e.g., Companies Act, GST, GDPR) and industry standards.
Importance of GRC framework for Indian Businesses:
- Boosts Transparency and Accountability: A GRC framework centralizes key data, making it easier to track actions, generate reports, and stay audit-ready. This builds trust with regulators, investors, and customers.
- Improves Decision-Making: With all risk and compliance data in one place, businesses can make smarter, faster decisions. It also helps spot problems early, especially in high-risk sectors.
- Enhances Efficiency: Automating routine tasks like reporting and audits saves time and cuts costs, letting teams focus on more strategic work.
- Strengthens Risk Management: Real-time alerts and continuous monitoring help identify and address threats early, keeping operations running smoothly.
- Supports Sustainable Growth: GRC practices encourage responsible operations, making it easier for businesses to grow while staying compliant.
- Protects Reputation: A solid GRC framework reduces the risk of compliance breaches or scandals that could harm a company’s image—crucial in today’s connected market.
- Global Operations: For firms expanding abroad, GRC ensures compliance with international standards (e.g., GDPR, SOX), fostering cross-border trust.
Industry-Wise GRC Framework List
Top GRC Frameworks Used by Indian Companies With Use Cases
In order to manage Governance, Risk, and Compliance efficiently, Indian organizations rely on proven GRC frameworks — both international and India-specific.
Here’s a look at the most popular GRC framework list with implications:
1. ISO 31000 – Risk Management Framework
This is one of the most popular global standards for risk management. It’s flexible and can be applied to any size or type of company — from tech startups to major banks.
It is used by IT firms, banks, manufacturing companies
Many Indian companies use ISO 31000 to:
- Identify and assess all types of risk (financial, cyber, operational, etc.)
- Build a risk management system
- Make risk-aware business decisions
Use case: ICICI Bank has adopted ISO 31000 to manage cybersecurity and operational risks.
2. ISO 37001 – Anti-Bribery Management Systems
This framework is designed to help companies prevent, detect, and respond to bribery.
It is being used by corporates, public-sector undertakings (PSUs), MNCs, large suppliers
Its key features include:
- Anti-bribery policies
- Financial controls
- Whistleblower protections
- Due diligence processes
Use Case: Companies like Larsen & Toubro (L&T) and Mahindra Group use ISO 37001 to align with India’s Prevention of Corruption Act and global anti-bribery laws.
3. COBIT – For IT Governance
COBIT (Control Objectives for Information and Related Technologies) is widely used in India for IT governance and risk control.
It is used by Indian IT firms, banks, service providers, large enterprises with complex IT systems
It helps businesses:
- Align IT strategy with business goals
- Improve IT compliance and performance
- Monitor IT risks and internal controls
Use Case: HDFC Bank uses COBIT to align IT systems with RBI’s digital lending guidelines and cybersecurity framework
5. COSO ERM
Committee of Sponsoring Organizations of the Treadway Commission – Enterprise Risk Management (COSO ERM) focuses on strategic alignment of risk management with business goals.
It is commonly used by banks, manufacturing, conglomerates, listed companies, etc.
It’s used to:
- Link risk management directly to strategy and performance
- Manage all kinds of risk
- Support informed decision-making
Use Case: Tata Steel and Reliance Industries use COSO ERM to assess operational, financial, and ESG risks.
6. NIST Framework – Cybersecurity Risk
It is used to protect critical IT systems and sensitive data.
Helps businesses:
- Respond to and recover from cyber incidents
- Monitor IT compliance
- Meet government cybersecurity rules
- Mitigating cyber risks through structured protocols.
Use Case: Adopted by Zoho to address threats like ransomware and data breaches.
7. ISO 27001 – Information Security Management
The focus here is protecting sensitive data from cyber threats.It is specially used by Indian organizations in IT, BFSI, and e-commerce.
It is used for:
- Protect sensitive data
- Reduce cybersecurity risks
- Prove compliance with data privacy laws (like the DPDP Act in India)
Use Case: Infosys and TCS implement ISO 27001 to secure client data and comply with GDPR, DPDP Act 2023, and RBI’s cybersecurity norms.
8. Indian Regulatory Frameworks (RBI, SEBI, MCA)
- SEBI: For listed companies, its LODR Regulations (Listing Obligations and Disclosure Requirements) focus governance transparency and accountability and mandates independent directors, audit committees, and ESG disclosures.
- RBI: Focus on financial stability, risk management, and KYC norms. Its PCA (Prompt Corrective Action) framework is used to manage capital adequacy and NPAs.
- Companies Act: Focuses on corporate governance, CSR, and whistleblower protection. It requires Indian firms to establish Vigil Mechanisms and spend 2% of profits on CSR.
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Steps to Implement a GRC Framework in India
1. Get Leadership Buy-in
Make sure your leadership team fully supports the GRC initiative.
Without executive buy-in, there’s no accountability or funding to drive change.
2. Assess Current State
Start by reviewing your existing governance, risk, and compliance processes.
This helps identify gaps, overlaps, and non-compliance issues before building a new framework.
3. Define GRC Goals and Scope
Set clear objectives like improving audit readiness, reducing risks, or meeting regulatory demands.
Decide if the GRC framework will cover the whole company or focus on specific departments.
4. Choose the Right Frameworks
Pick GRC frameworks that align with your industry, such as ISO 31000, ISO 27001, or SEBI guidelines.
Most Indian companies use a hybrid approach to cover both global standards and local laws.
You can seek help from firms like PKC Management Consulting to help choose and implement the best GRC framework for your business.
5. Develop Policies and Procedures
Draft clear internal policies for governance, risk handling, and compliance reporting.
Make sure these documents match Indian laws like the Companies Act and RBI regulations.
6. Select GRC Tools or Software
Use digital tools to automate risk tracking, policy management, and compliance monitoring.
Popular tools in India include SAP GRC, MetricStream, and IBM OpenPages.
7. Train Employees
Train your staff to understand GRC policies and report risks effectively.
Focus on departments that deal with financial data, compliance, and operations first.
8. Monitor, Audit & Improve
Regularly track KPIs, conduct audits, and review incidents to ensure the GRC system is working.
Update your framework based on audit results and changing regulations.
9. Ensure Local & Global Compliance
Check that your framework complies with Indian laws (like SEBI or RBI) and international standards (like GDPR or ISO).
This is especially important for Indian companies operating globally or handling international data.
10. Build a GRC Culture
Promote a company-wide mindset of accountability, transparency, and ethical behavior.
Make GRC a part of everyday decisions, not just a one-time project.
Frequently Asked Questions
1. Why do Indian companies need a GRC framework?
India’s regulatory landscape is strict and constantly changing. A GRC framework ensures businesses stay compliant with laws like SEBI LODR, RBI RBS, and the Companies Act 2013.
2. Which GRC frameworks are best for Indian companies?
Top frameworks include ISO 31000, ISO 27001, COBIT, COSO ERM, ISO 37001, and SEBI regulations. The right mix depends on your industry, size, and risk level.
3. How long does it take to implement a GRC framework?
It depends on your company’s size and complexity. Typically, it can take 3 to 12 months to roll out a full GRC framework with tools and training.
4. Can small businesses in India use a GRC framework?
Yes, even small businesses face cyber risks and tax rules, so simplified GRC systems help them grow without legal trouble.
