Demystifying the GRC Capability Model 3.5

A Roadmap to Principled Performance

In a world where organizations are navigating increasing complexity, uncertainty, and regulatory scrutiny, the ability to govern, manage risk, and ensure compliance—while still achieving performance goals—is not optional. It’s essential.

Enter the GRC Capability Model 3.5, also known as the OCEG Red Book, a globally recognized framework designed to guide organizations in designing and enhancing their Governance, Risk, and Compliance (GRC) capabilities. Version 3.5 represents the latest evolution of a model that has helped thousands of enterprises pursue what OCEG calls "Principled Performance"—the reliable achievement of objectives while addressing uncertainty and acting with integrity.

What Is the GRC Capability Model?

The GRC Capability Model 3.5 is a practical, non-prescriptive framework developed by OCEG (Open Compliance & Ethics Group). It is designed to help organizations:

• Plan and align GRC activities across business units and functions

• Assess the maturity and effectiveness of their existing GRC structures

• Continuously improve governance, risk management, compliance, and ethical performance

The model doesn’t dictate how your organization should operate—it provides a set of guiding principles, components, and practices that can be tailored to your size, industry, and risk environment.

Four Core Components of the GRC Capability Model

The model is structured around four key components that represent a continuous and integrated approach to GRC:

1. LEARN – Understand the internal and external context in which the organization operates, including objectives, culture, stakeholders, and obligations.
   

2. ALIGN – Establish and maintain clear roles, policies, and frameworks that support principled decision-making and strategy execution.
   

3. PERFORM – Execute processes to manage risks, comply with obligations, and achieve strategic goals in an ethical, efficient manner.
   

4. REVIEW – Monitor performance, identify gaps, assess effectiveness, and implement improvements.
   

Each component includes detailed practices and capabilities that help organizations build a GRC program that is comprehensive, integrated, and sustainable.

Why GRC Capability Model 3.5 Matters

• Holistic View: It breaks down traditional silos between governance, risk, and compliance, enabling integrated strategy execution.
  

• Adaptability: Applicable across industries and company sizes—whether you're a startup or a multinational enterprise.
  

• Audit-Ready & Future-Proof: Aligns with ISO, COSO, and other major standards, ensuring your organization is both compliant and forward-thinking.
  

• Continuous Improvement: Promotes an iterative cycle of review and enhancement, supporting long-term maturity and resilience.
  

In short, this model is a blueprint for transforming GRC from a reactive set of controls to a proactive driver of performance.

How REDE Consulting Helps You Adopt the GRC Capability Model

At REDE Consulting, we specialize in turning frameworks like the GRC Capability Model 3.5 into operational reality through our expertise in ServiceNow IRM/GRC, process design, and enterprise advisory services.

Here’s how we support organizations:

🔹 GRC Program Assessments: We evaluate your current GRC capabilities against the Red Book’s maturity model to identify gaps and improvement areas.

🔹 Framework Alignment & Implementation: We help you map the model’s components into your existing governance structures, policies, and ServiceNow GRC modules—turning theory into measurable action.

🔹 Integrated Risk Architecture: REDE configures your risk registers, control libraries, compliance obligations, and issue management workflows based on industry best practices and aligned to the Red Book.

🔹 Continuous Improvement & Training: Through dashboards, metrics, and ongoing reviews, we enable iterative improvements and user training—embedding GRC into the culture of your organization.

Conclusion: A Model for Modern Governance

The GRC Capability Model 3.5 isn’t just a compliance checklist. It’s a strategic framework for achieving Principled Performance—delivering results with integrity, resilience, and agility.

Whether you’re just starting your GRC journey or seeking to elevate a mature program, the OCEG Red Book offers the guidance you need. And with a partner like REDE Consulting, you can turn that guidance into operational excellence.

Ready to assess and improve your GRC capabilities?

Let’s work together to align your organization with the GRC Capability Model 3.5—and future-proof your governance and compliance strategy. ( Our contact - info@rede-consulting.com )