Governance, Risk & Compliance Overview

Governance, Risk & Compliance Overview

The market for software and tech-enabled services handling Governance, Risk & Compliance (“GRC”) needs is experiencing tremendous growth, a phenomenon Catalyst has seen first-hand through our investments in Fusion Risk Management and Envoy, among others.

The GRC space has traditionally been dominated by consultants and manual processes and we believe companies are still in the early days of pivoting to more efficient, purpose-built software.

A significant driver of this change is the nearly exponential growth in the amount of data volume and variety being captured by companies – resulting in the need for more sophisticated GRC tools. Additionally, market growth is being further propelled by a heightened regulatory environment, increased tech adoption by regulators (both political and industry-specific), and the enhanced level of scrutiny facing both the C-suite level and boards for potential lapses in risk management – a particularly topical point given the publicity that recent data breaches / compliance issues have received.

GovTech Market Overview

In a day and age of rapid technological innovation, the public has come to demand an incredibly high level of technical sophistication from all aspects of their lives. Where the commercial sector has accelerated to meet this demand, the public sector has historically been resistant to change. The Government Technology (“GovTech”) sector arose in response to public demand for more efficient, affordable, and secure government processes from a segment plagued by antiquated systems and outdated procedures. Only recently have government entities begun leveraging innovative and agile solutions to meet increasing operational demands and produce more citizen value while remaining adherent to stringent budgets.