The GRC Evolution That Can’t Be Ignored

As Drata’s CEO, I’ve watched governance, risk, and compliance (GRC) transform from a back-office necessity into a strategic business function over the past decade. 

GRC has modernized and become a true business enabler rather than a cost center. Strong, efficient GRC programs help organizations unlock new markets, accelerate customer acquisition, and maintain trust.

This shift was inevitable, especially considering how quickly businesses have moved to the cloud and the software-as-a-service (SaaS) market boom, which is expected to grow from $315 billion in 2025 to $1.1 trillion in 2032.

At my previous company, Portfolium, my cofounders Troy Markowitz and Daniel Marashlian and I faced a brutal reality: thousands of universities required rigorous security and compliance standards before they could adopt our platform. Empty security claims were worthless — we needed to show proof.

This was my lightbulb moment. I saw firsthand how trust wasn’t just a box to check but a core business driver. The faster we could demonstrate our security posture, the quicker we could close deals. I knew this would become the future of business relationships, and this conviction became the driving force behind forming Drata in 2020 with Troy and Daniel. 

Every week, I speak with customers about their pain points related to the outdated and fragmented nature of security and compliance processes (and yes, it’s one of the last few business areas to enter the modern age).

Through these conversations, I’ve come to recognize that we’re witnessing nothing short of a fundamental shift in how businesses approach security and compliance — a shift from traditional GRC practices to trust management.

Trust management is the continuous process of ensuring and communicating that a company is secure, compliant, and, therefore, deserving of its customers’ trust. I see it as the inevitable evolution of GRC, merging internal security, compliance, and risk efforts with external assurance.

Let’s be clear — legacy GRC approaches are dying. Unlike traditional GRC, which often operates in silos and reacts to new compliance requirements, trust management takes a holistic look at your compliance and security program and how they fit into your business objectives.

It’s no longer enough to simply pass audits. This elevated, integrated, and proactive approach means around-the-clock monitoring to constantly prove your security and resilience to customers, partners, and regulators.

I believe security assurance is the cornerstone of this shift. Demonstrating — not just declaring — that an organization meets the highest security and compliance standards means more outward transparency and a bigger bottom line.

In today’s market, I’ve watched expectations transform dramatically. Businesses are expected to provide continuous proof of their security posture, not just annual compliance reports and pen test summaries. Automated evidence collection, real-time monitoring, and AI-powered risk assessments help organizations stay ahead of threats while maintaining transparency with stakeholders.

From burden to business accelerator

Ten years ago, I watched security and compliance leaders being told to “shut up and just get the audits done.” Today, I see them invited to the board meeting every quarter.

I’ve personally heard this sentiment echoed by leaders across the industry — what was once a back-office function has become absolutely crucial in driving growth. Businesses are realizing that trust isn’t just about meeting compliance requirements; it’s your ticket to landing deals, securing partnerships, and leaving competitors in the dust.

You can see this transformation in part through the job titles we see today. The emergence of roles like “GRC Engineer” and “Chief Trust Officer” highlights how companies are rethinking their approach.

I am now seeing some forward-thinking companies replacing “GRC” with “Trust” entirely, recognizing that security and compliance are no longer just internal mandates but key differentiators in the market.

The rise of trust-focused roles in GRC

Implementing a trust-centered approach requires alignment across the entire organization, including the processes and culture already in place.

Here’s my advice on key strategies to help emerging roles integrate trust:

• Don’t wait to evaluate job titles to reflect trust and transparency initiatives
• Make security personal through regular security and compliance training to keep it top of mind
• Stop doing things manually — leverage automation to reduce effort and improve compliance efficacy
• Break down the walls between security, compliance, and development teams

The shift to trust management means companies are constantly under pressure to prove their security posture. But let’s be honest — trying to do this manually is a losing battle. The landscape is too complex, the risks too high, and everything moves too fast. 

Businesses need a better way. Not just to react to threats but to stay ahead of them. And that’s exactly where AI comes in.

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The sheer volume of data individuals are tasked with processing is a major organizational time suck. Using AI to handle security and compliance data means faster risk response and streamlined reporting.

I’m convinced that AI isn’t just making compliance more efficient; it’s enabling businesses to proactively manage trust at scale. The secret lies in knowing how to integrate AI in a way that enhances — not replaces — the expertise and strategic oversight of security and compliance teams. 

I’ve seen AI help organizations flag security gaps before they become real problems (something that was nearly impossible before). But with AI’s growing influence in compliance and risk management comes increased scrutiny.

Don’t think regulators aren’t paying attention. They’re already stepping in to ensure AI is used responsibly. Frameworks like the EU AI Act and NIST AI Risk Management Framework are setting the standard for GRC in AI-driven processes. 

These regulations are just the beginning, and that’s a good thing. Countering the free-for-all mentality helps hold companies accountable for how they implement and manage AI. Being transparent about how your organization plans to use AI reduces back-and-forth between prospects and strengthens customer trust. 

Because customers, partners, and investors will increasingly scrutinize AI usage as part of their trust evaluation — which I guarantee they will — companies that proactively address AI governance will not only mitigate risk but also strengthen their position as trustworthy leaders in the industry.

Future-proofing with GRC

More oversight is coming — that’s not a prediction; it’s a certainty. Companies that fail to modernize their GRC strategy risk falling behind.

To future-proof your approach, I strongly recommend:

• Stop throwing bodies at the problem and invest in automation: Manual compliance processes can’t and won’t keep up with the speed of business. AI-powered solutions can help organizations stay on top of compliance requirements and proactively manage risk and security threats.
• Demolish the silos: Security, compliance, and risk management must work together seamlessly. A fragmented approach leads to inefficiencies and increased risk.
• Play offense, not defense, by shifting from reactive to proactive: Compliance isn’t just about passing audits; it’s about regularly demonstrating security and trust. By continuously monitoring your compliance posture, you can identify and address risks quicker and more effectively.
• Make security everyone’s job by building a security-first culture: Trust and security must be embedded into every department, from leadership to HR to finance. Ensure everyone understands their role in maintaining compliance and why security is absolutely crucial to the health of an organization.

I’ve seen too many companies fall into common traps, such as relying on outdated frameworks or assuming compliance equals security. I can tell you with absolute certainty that a company that treats compliance as a one-and-done task rather than an ongoing process is setting itself up for failure.

The mindset shift leaders need

GRC is evolving whether you like it or not. Trust is now the currency that will determine your ability to adapt to new technology, regulations, customer expectations, and ways of doing business.

I’ve watched companies fail to modernize their approach and find themselves unable to compete as they struggle to meet compliance demands, secure partnerships, and win customer confidence.

I believe that for organizations to truly embrace trust management, leadership must shift its perspective. Compliance isn’t just a regulation — it’s a competitive advantage. Businesses that prioritize trust management will be better positioned to navigate heightened security concerns, gain customer confidence, and scale confidently.

The days of viewing GRC as a necessary evil are over. Trust is the currency of today’s digital economy, and trust management is the future of GRC.

My conviction is simple: organizations that embrace this shift won’t just keep up — they’ll lead the way.

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Edited by Shanti S Nair