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Quantifying the ROI of GRC & security programs: A practical guide

Tejas Ranade

Jul 28, 2023

How to quantify ROI of GRC

Understanding the real-world return on Governance, Risk, and Compliance (GRC) programs can feel like chasing shadows but it doesn’t have to be. At TrustCloud, we believe GRC shouldn’t be seen as a cost center, but as an engine for efficiency, revenue growth, and risk reduction.

This article walks you through how to quantify the value of your GRC and security efforts by connecting them to tangible business outcomes, like faster sales cycles, savings on audit preparation, and a smoother risk posture. By tracking the right metrics, you can show leadership that a strong compliance program isn’t just necessary, it’s a smart investment.

GRC programs are often viewed as cost centers. But, they can in fact be profit drivers by contributing to sales acceleration, cost and time savings, and risk reduction. The real question is, how can you prove that to the board?

TrustCloud teamed up with ISSA to discuss:

  1. How CISOs and GRC professionals can calculate the ROI of GRC
  2. Practical examples of how to gauge program success
  3. The paradigm shift from GRC to RGC, or revenue-generating compliance

Speakers include:

  1. Tejas Ranade, Chief Product Officer at TrustCloud
  2. Shannon Noonan , CEO and Founder of High Noon Consulting
  3. Lee Neely, Board Member and Director for ISSA International

Read on to see what they had to say, or check out their conversation on Youtube.

Transforming GRC into a profit center

In the world of GRC (Governance, Risk, and Compliance), many actions seem to be mere check-the-box exercises despite significant investments and efforts. When we question GRC teams and CISOs about the effectiveness of their controls or the reliability of vendor responses, the responses often reveal uncertainty and skepticism.

One of the driving forces behind creating TrustCloud was the observation that GRC is commonly perceived as a cost center rather than a potential profit center. We firmly believe that GRC can have a substantial impact on revenue and should be recognized as such.

In 2020, amidst the challenges of the COVID pandemic, we embarked on our journey to establish TrustCloud. Seizing the opportunity to make a difference, we began our venture and aim to address these critical issues in the GRC landscape.

Over the past four years, our efforts have paid off, and we have successfully gained customers who rely on our services for multiple purposes. These include preparing for audits, automating security questionnaires, and mitigating risk and liability in their operations.

A source of pride for us is the fact that our product is embraced by security- and privacy-conscious businesses. Their trust in our solution has allowed us to gain valuable insights and observations over the course of the last four to five years.

In the following discussion, I will delve into some key topics that have emerged from our interactions with these customers and the knowledge we’ve acquired throughout this journey.

Why bother measuring ROI anyway

Executives live for spreadsheets that sing. Without ROI numbers, GRC and security look like cost centers, not profit protectors. Take a healthcare network juggling 340 vendors: Old-school questionnaires missed red flags until they rolled out a GRC platform. In eight weeks, it flagged 47 high-risk partners and 12 critical device flaws, dodging an $8.2 million hit from fines and fixes. Their $1.3 million investment?
Beyond the drama, measurement keeps programs sharp. It spots what’s working, like slashing audit prep from weeks to days and what’s not. Organizations that track metrics see risk drop, compliance speed up, and leaders nodding yes to more funding. Skip it, and you’re flying blind while competitors quantify their edge.

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Challenges

In conversations with security and GRC professionals across industries, one theme consistently stands out: the sheer complexity of the modern GRC function. Teams are expected to balance an ever-growing list of responsibilities, from managing audits and completing security questionnaires to maintaining risk registers and producing compliance reports. Each of these tasks requires precision and coordination, often with limited time and resources. The challenge is compounded by the need to remain agile, as new business priorities, regulatory changes, and emerging security threats demand constant adaptation. This dynamic environment means GRC professionals are not just compliance managers, they are strategic risk advisors, often operating under high pressure and visibility.

The organizational and cultural aspects of GRC add another layer of difficulty. Leadership teams sometimes struggle to fully appreciate the strategic importance of GRC, viewing it as a cost center rather than a value driver. At the same time, employees across departments may see GRC tasks as administrative burdens, without understanding how they support the organization’s security posture and regulatory standing. Limited recognition of the GRC team’s value often translates into resource challenges, including smaller budgets, understaffing, and delayed investments in tools or automation. These factors can limit the team’s ability to scale effectively and maintain consistent risk oversight.

GRC

Key challenges faced by GRC teams today include:

  1. Leadership buy-in
    Executives may not fully understand or prioritize the role of GRC, leading to a lack of strategic support.
  2. Cultural perception
    Employees often see GRC tasks as compliance “checkboxes” rather than critical security activities.
  3. Resource constraints
    Budget and staffing limitations can hinder the ability to manage growing workloads and evolving risks.
  4. Regulatory complexity
    Rapidly changing frameworks and requirements increase the pressure on teams to stay current and compliant.
  5. Scaling efforts
    As organizations grow, maintaining oversight and consistency across departments and regions becomes increasingly difficult.

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Tangible wins you can count

Many organizations pursue GRC or security programs because they know it’s the right thing to do, but the financial impact is often far greater than expected. When executed with automation and structure, GRC becomes a measurable cost saver and value generator. Teams reduce manual effort, accelerate deal velocity, and avoid costly regulatory consequences.

These aren’t theoretical benefits; they’re quantifiable improvements you can track in hours saved, tools decommissioned, and risks avoided. With the right platform, organizations move from reactive overhead to strategic advantage, where time, efficiency, and trust directly turn into revenue and operational savings.

  1. Labor efficiency gains
    Automated workflows eliminate repetitive tasks like evidence collection, control testing, and manual reporting. Instead of spending hours chasing documentation or updating spreadsheets, teams move faster with built-in workflows and reusable responses. One organization reduced reporting work by half, freeing skilled staff for strategic initiatives. When you calculate hours saved multiplied by average labor cost, you see meaningful year-over-year financial gains.
  2. Reduced exposure to penalties and fines
    Non-compliance with regulations like GDPR, HIPAA, SOC 2, or SOX can lead to substantial financial loss, sometimes in the millions. A mature compliance program demonstrates due diligence and reduces the likelihood of regulatory action or reputational fallout. This proactive approach protects the business from costly fines and legal expenses while reinforcing trust with customers, partners, and oversight bodies.
  3. Faster vendor management and evaluations
    Vendor due diligence often creates bottlenecks, especially during enterprise deals. Centralized questionnaires, automated evidence reuse, and integrated risk scoring dramatically speed up the review process. By streamlining third-party security assessments, teams eliminate spreadsheet chaos and reduce legal review cycles. For many companies, this results in faster procurement, shorter sales cycles, and more predictable timelines across the business.
  4. Technology consolidation and IT cleanup
    As compliance needs grow, many teams rely on multiple siloed tools to meet requirements: ticketing systems, documentation platforms, spreadsheets, and standalone audit trackers. With an integrated GRC platform, organizations can retire outdated or redundant systems and reduce licensing fees. This consolidation not only lowers annual operating costs but also improves data accuracy, accessibility, and audit readiness.
  5. Improved audit readiness and reduced disruption
    Traditional audits often pull teams away from critical responsibilities. With centralized evidence, continuous monitoring, and reusable documentation, audits become faster and less disruptive. Instead of scrambling once a year, organizations maintain readiness throughout the cycle. The result is predictable audit timelines and cost control, both measurable outcomes that support operational efficiency and business continuity.
  6. Stronger sales velocity and competitive advantage
    Compliance signals credibility. When prospects compare vendors, having certifications like SOC 2 or ISO 27001 can accelerate decision-making and reduce security review friction. The ability to share reports, policies, and automated portal responses shortens deal cycles, especially with enterprise buyers. This accelerates pipeline movement and directly supports revenue growth, turning compliance investments into visible commercial value.

When you add up time saved, tools retired, risks reduced, and deals accelerated, the ROI of a strong GRC and security program becomes undeniable. These improvements compound over time, strengthening financial resilience and operational stability. Instead of being seen as a cost center, compliance becomes a measurable business accelerator,  one that pays for itself and drives long-term strategic value.

Here’s a quick table of common tangibles:

BenefitExample MetricPotential Savings
Labor efficiencyHours cut on audits$50K–$200K/year ​
Fine avoidanceReduced non-compliance risk$25K+ per incident ​
Vendor managementFaster assessments30–50% time drop ​
IT cleanupDitch legacy tools$75K in licenses ​
 

Stack these, subtract costs, and watch ROI climb.

Read the “HIPAA security policy template for healthcare compliance” article to learn more!

How GRC helps sell jeans

A thought-provoking perspective from former Levi Strauss & Co. CISO, Steve Zalewski, highlights the importance of aligning GRC efforts with business outcomes. The question “How does this help me sell more jeans?” exemplifies the notion that all roles should ultimately contribute to business success.

In response to these challenges, a positive trend has emerged in the industry. Many GRC teams are shifting their focus from mere checkbox exercises to building trust with their customers. This evolution is termed “trust assurance,” indicating a move towards more meaningful and impactful GRC practices.

As the landscape continues to evolve, GRC professionals are recognizing the need to demonstrate tangible value to their organizations and customers, transcending traditional approaches for a more impactful and purposeful role in the business ecosystem.

The prevailing compliance approach revolves around checking boxes and fulfilling regulatory requirements without a deeper connection to business outcomes. This traditional method is characterized by its static, manual, and document-based nature, lacking transparency and relevance to building customer trust.

However, a paradigm shift is underway, redefining GRC as a means to drive assurance. Now, GRC is evaluated based on its impact in gaining customer trust, facilitating business growth, and enhancing transparency across teams, boards, and customers. It seeks to answer essential questions: Is it programmatic, accurate, and intelligent? Does it enable business outcomes?

While automation is essential in streamlining processes, merely automating existing check-the-box exercises does not lead to substantial change. On the other hand, Trust Assurance elevates GRC to a level where it fosters trust and transparency between companies.

The significance of Trust Assurance lies in its transformative impact on GRC programs. By adopting this approach, GRC teams are no longer viewed solely as cost centers but as profit centers. The shift from tolerated expenses to revenue drivers aligns GRC with strategic conversations and secures a place at the decision-making table.

As a personal sentiment, the compliance personnel in GRC are increasingly recognized as trust champions for their businesses. This recognition reflects their crucial role in establishing trust and credibility with customers and partners, contributing significantly to the overall success and reputation of the organization.

The promise land

Lesson 1: Become a revenue ally

Transform your GRC programs into RGC (Revenue Generating Compliance) programs, and make them a driving force behind your business’s revenue growth. Leverage compliance efforts to propel net new sales and align your actions with revenue acceleration in the sales process.

When we engage in compliance-related tasks such as responding to security questionnaires or providing collateral to prospects and customers, it’s important to recognize that compliance plays a vital role in driving revenue. Companies undertake compliance measures to bolster their revenue streams, making it an integral part of business strategy.

By tying compliance efforts to revenue acceleration and sales enablement, you can become a valuable ally to your revenue team. Demonstrating how compliance activities directly contribute to revenue generation helps your team gain recognition and support from other business units.

Let’s explore some specific examples of tracking your revenue contribution within the context of GRC efforts:

Tie compliance efforts to revenue acceleration

When handling tasks like answering security questionnaires, consider linking them to revenue outcomes. Identify the deals that were successfully closed during the last quarter and determine the revenue impact of your contributions. Similarly, assess how answering security questionnaires for renewals has secured revenue for the company. This approach allows you to showcase how your efforts directly contribute to driving revenue growth.

Respond to customer demands

Analyze the most requested security and privacy collateral and documentation from your customers. It might be your SoC 2 report or pen test results, among others. Understanding what customers demand helps justify investments in various GRC activities, as they align with meeting customer expectations and building trust.

Enhance sales process efficiency

Focus on accelerating sales through efficient GRC practices. By providing Service Level Agreements (SLAs) on security questionnaires or other compliance-related tasks, your team aids sales acceleration and helps the sales team in closing deals. Meeting tight turnaround times on questionnaires or other compliance requirements plays a crucial role in achieving the organization’s sales goals. Highlighting such accomplishments showcases your team’s value and impact.

By leveraging these revenue-centric tracking methods, GRC teams can demonstrate their strategic importance to the organization. Aligning GRC efforts with revenue generation, customer needs, and sales acceleration showcases the significant contribution of GRC in driving business success and achieving overall organizational goals.

In the pursuit of building trust, transparency is becoming a key differentiator. During security reviews, prospects seek insight into how your organization handles security and privacy matters. Companies that can confidently lead with transparency not only perform better in sales cycles but also establish stronger trust with potential customers. This trust leads to improved sales conversion rates, faster Service Level Agreements (SLAs), and a greater willingness for people to engage in business with you.

By embracing RGC programs and leading with transparency, your GRC efforts become instrumental in driving revenue growth, forging strong relationships with customers, and positioning your organization for long-term success.

Lesson 2: Tie risks to business impact

Let’s talk about risks and how successful CISOs are effectively communicating and tracking them.

Linking risk to business impact

Having a risk register is common in many companies, but the challenge lies in conveying the significance of risks and liabilities to the business. Successful CISOs are now tracking risks based on their potential business impact. By demonstrating how certain risks could lead to breaches of customer or contractual obligations, they make risks more tangible and relatable to business leaders.

Financial impact as a language of communication

When presenting to leadership and seeking budget justifications, gut feelings are inadequate. Instead, CISOs are using financial impact as a more tangible way to communicate with decision-makers. Comparing last quarter’s top risks to the current ones, showcasing investments made to mitigate risks, and quantifying the progress in reducing risks and liabilities are becoming standard practices.

Quantifying residual risks and liability

A key strategy employed by successful CISOs is tying residual risks to their dollar value. This involves calculating the financial impact of a risk and understanding how investments reduce residual risks. By correlating risk mitigation efforts to potential liability reductions, CISOs can make a compelling case for budget allocations.

Emphasizing ownership and accountability

Highlighting the individuals responsible for risk management and cybersecurity is crucial. Ownership entails accountability, and clarifying roles and responsibilities within the organization ensures that everyone understands their role in protecting the organization from risks.

By employing these strategies, CISOs can effectively communicate the importance of risk management to business leaders and demonstrate how their efforts lead to tangible improvements in reducing risks and liabilities. Quantifying risks in terms of financial impact and liability helps bridge the gap between technical security concepts and business priorities, enabling CISOs to gain support for their initiatives and secure the necessary resources to protect the organization effectively.

Prove ROI to your executives and board

You know that security questionnaires allow the team to sell, and controls uphold contractual commitments, but leadership may not. Prove your impact with TrustCloud’s board-ready reports that connect GRC activities to revenue protection and liability reduction.

Lesson 3: Create a culture of trust

The third lesson I’d like to emphasize is how successful companies are fostering a culture of trust within their organizations through their GRC teams:

Decentralizing understanding and action

To ensure that employees keep up with their GRC obligations, it is essential to decentralize understanding. Every individual involved in GRC tasks should comprehend the impact of their actions on liability and business outcomes. This can be achieved by making GRC-related tasks more accessible and seamlessly integrated into their daily work channels. For instance, using device management software that operates within applications like Slack helps people easily stay updated and compliant with minimal disruption.

Demonstrating impact and motivation

By linking individuals’ activities to customer contracts, revenue retention, risk management, and sales, you empower employees to understand the purpose behind their tasks. When they recognize the significance of their contributions, they become more motivated to perform their duties diligently. Showing the tangible results of their efforts in terms of driving business objectives and reducing costs further reinforces their commitment to compliance.

Celebrating compliance as a team effort

Position compliance as a team sport and actively celebrate individuals who keep up and fulfill their responsibilities. Recognizing and publicly appreciating their efforts reinforces positive behavior and encourages others to follow suit. Creating accountability through highlighted ownership and team responsibilities also plays a significant role in driving action and maintaining a culture of trust.

Some practical approaches used by successful companies to build a culture of trust include:

  1. Demonstrating how each individual’s work contributes to organizational goals and cost reduction
  2. Highlighting the teams and individuals responsible for maintaining commitments and accountability
  3. Showing appreciation and celebrating compliance efforts in a way that resonates with employees

By implementing these tips and tricks, organizations can strengthen their commitment to trust, compliance, and transparency. A culture of trust fosters a sense of responsibility and motivates employees to prioritize GRC activities, leading to greater efficiency, improved risk management, and better overall business outcomes.

Building an executive-ready ROI dashboard

To gain buy-in from leadership, you need more than numbers; you need clarity. An executive-ready ROI dashboard translates GRC efforts into performance metrics that matter to decision-makers, like cost avoidance, efficiency gains, and risk reduction. This visual summary ties your security program’s output to broader business goals and showcases tangible value in terms executives understand.

Five elements to include in your ROI dashboard

  1. Cost Avoidance Metrics
    Highlight where your program prevented losses, like fines, breaches, or downtime. Use data wherever possible (e.g., historical incident costs). Even estimates tied to event frequency can make a powerful case.
  2. Efficiency and Productivity Improvements
    Track reductions in manual effort: time saved in audit prep, compliance reporting, or risk assessments. Quantify hours and translate that into labor cost savings across teams.
  3. Key Risk Indicators Over Time
    Display trends in risk exposure: how many critical findings were closed, average remediation time, or percentage of proactive versus reactive responses. These indicators signal real improvements in resilience.
  4. Compliance and Audit Readiness Stats
    Show compliance coverage (e.g., % of controls in place), reductions in audit findings, or faster audit cycles. These speak directly to cost savings and reputational defense.
  5. Tangible ROI Calculation and Visualization
    Combine benefits and costs in a simple ROI formula, like net benefit divided by total investment, then chart that over time. Add projections, payback periods, or cumulative ROI visuals to make your argument compelling.

Summing it up

Putting hard numbers to GRC and security doesn’t just make for a stronger audit; it gives teams real credit within the business. When you show how faster audits, reduced risk and smoother vendor assessments save time, reduce costs, and eliminate bottlenecks, it changes the conversation. GRC becomes less about “another cost center” and more about proactive resilience and growth.

At TrustCloud, we see GRC ROI as the bridge between compliance and business performance. Start by mapping your program’s outputs, like time saved, avoided penalties, or faster deal cycles, to metrics decision-makers care about. Then, use dashboards and regular reporting to keep that value visible. These numbers do more than justify spending; they build confidence in GRC, unlock more resources, and empower your team to go further.

The key lies in making the invisible visible, so your compliance program is recognized not just for what it guards but for what it gains.

FAQs

How can GRC and security efforts be seen as value drivers rather than cost centers?

Historically, GRC (Governance, Risk, and Compliance) and security initiatives are seen as overhead, necessary but not revenue-generating. The shift begins by reframing them as profit enablers. At TrustCloud, we’ve guided teams to spotlight how efficient GRC practices accelerate sales cycles, reduce operational friction, and lower contractual liabilities. By tracking metrics such as time saved on audit prep, reduction in penalty risk, and speed of deal closure, GRC programs become demonstrably tied to business outcomes. Presenting these numbers to leadership helps move the conversation from cost to investment in resilience and revenue protection. It’s about showing tangible impact, how proactive compliance and security readiness reduce friction and build business agility.

To measure real impact, teams should focus on three core metric groups:

  1. Sales & Revenue Impact:
    How much faster are deals closing due to streamlined security reviews or pre-shared compliance data? Faster approvals often translate to improved revenue recognition.
  2. Operational Efficiency:
    Track reductions in time and manual effort needed for audits, questionnaires, and control monitoring. These efficiency gains directly reduce costs while increasing focus on strategic tasks.
  3. Risk & Liability Reduction:
    Measure avoided contractual penalties, decreased audit findings, or improved risk posture. Reducing potential liability strengthens your financial and regulatory standing.

Combining these metrics helps finance and leadership connect GRC outcomes to bottom-line performance—and helps justify expanded investment in tools and automation

TrustCloud makes ROI transparent and compelling in several ways:

  1. Automated risk quantification links GRC efforts to business metrics like revenue protection and liability reduction, visualized in executive-ready dashboards.
  2. Continuous control assurance eliminates manual audit prep, showing tangible time and cost savings.
  3. Pre-filled security questionnaires and Trust Portals accelerate sales processes by up to 90%, minimizing delays in deals.
  4. Single control framework means “test once, satisfy many,” so multiple audits or compliance requirements cost less and take less time.
  5. Board-level reporting tools present clear, context-rich summaries that articulate how security underpins business resilience.

With TrustCloud, what was once invisible becomes measurable, and GRC shifts from behind-the-scenes duty into the spotlighted strategic engine driving trust and growth

Automating GRC tasks replaces repetitive manual work with efficient digital workflows, enabling teams to focus on higher-value activities. To quantify time savings, organizations first map manual tasks to automated equivalents and measure the time previously spent on activities such as evidence collection, control assessments, report generation, and documentation updates. Then they calculate the reduction in hours or full-time equivalent (FTE) workload over a period.

For example, if a manual compliance process took 100 hours per quarter and automation reduces that to 40 hours, the organization can quantify 60 hours saved. Converting hours saved into cost avoidance provides a tangible ROI figure. This approach helps justify investments in GRC automation tools by linking improved efficiency directly to business outcomes.

Risk reduction is central to GRC ROI because it directly impacts an organization’s exposure to potential losses. When security programs identify and remediate vulnerabilities before they are exploited, the likelihood of data breaches, operational disruptions, and compliance violations decreases. Quantifying risk reduction often involves estimating the financial impact of avoided incidents using historical data, industry benchmarks, or risk models.

For example, lowering the probability of a breach from 10% to 5% helps estimate dollars saved from prevented downtime, legal liabilities, and reputational costs. Risk reduction metrics also support investor confidence and customer trust, strengthening brand reputation and long-term business stability.

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