Whether the name “GRC” takes hold or not, the activity itself is still essential, and the need for it by whatever name, is being recognized more and more.

Consider S&P’s announcement in January that they are going to be implementing an ERM inquiry as part of their rating investigations for all companies, not just financial firms (since 2004) and energy companies (started last year with a 12-company pilot). Now that all companies’ leadership teams face having their credit rating and cost of capital on the line, I can only believe that their hands will get a little tighter on the reins of governance and risk and compliance.

A ratings hit is about the most public rebuke they can take short of an indictment, and will make GRC failures more visible than they’ve ever been before.