In Governance, Risk, and Compliance (GRC) programs, it’s common to talk about “risks” and “issues”. But the term “risk event” is just as important, and often misunderstood. A risk event isn’t theoretical. It’s something that actually happened, whether it’s a trade error, system failure, or control breakdown.
When left untracked, these events can snowball into audit findings, repeat losses, or compliance breaches. That’s why many risk and compliance teams are now formalizing how they identify, record, and resolve risk events.
This guide explains what a risk event is, how it differs from related concepts, and how logging them improves oversight, reporting, and control effectiveness.
What is a risk event in GRC?
A risk event in GRC is any actual occurrence that disrupts your organization’s ability to achieve its objectives. These events might stem from process breakdowns, system failures, missed regulatory filings, or even reputational issues. In GRC programs, a risk event provides the ground truth that connects risk models to real-world outcomes.
Understanding what qualifies as a risk event is essential to build an effective risk register, stay compliant, and improve response over time.
What’s the difference between a risk, risk event, incident, and issue in GRC terms?
We’ll define exactly how a risk event differs from a risk, incident, or issue, and why each plays a distinct role in your GRC audit trail. To get clear on the terminology, it helps to break it down:
What is a risk?
A risk in GRC is a potential event or situation that could negatively impact objectives. It hasn’t happened yet.
What is a GRC risk event?
A risk event within a GRC context is the moment that risk materializes. Something went wrong. A process failed. A loss occurred. It can also be referred to as an Incident or Loss Event, with loss events typically less detailed and more focused.
What is an incident in GRC?
In GRC, an incident is an event (such as a system outage, failed trade, or public complaint) that disrupts business or causes a loss. The terms “incident,” “risk event,” and “loss event” all refer to these types of events and are often used interchangeably.
What is an issue in risk and compliance?
An issue in GRC refers to a root cause or control gap that allowed the risk event to occur and can be identified proactively by the first, second or third line. Often linked to failed or missing controls and is likely to be shared across business areas and GRC teams.
Why risk events matter in GRC
GRC teams aren’t just being asked to assess risk anymore. Regulators want evidence that you’re logging real-world events, learning from them, and improving how you respond.
That shift shows up across most major frameworks:
- FFIEC (U.S.) and OSFI (Canada) require banks to track operational loss events and show how they’re resolved.
- DORA, EBA, and ECB now expect European firms to demonstrate how incidents link to controls, recovery plans, and governance processes.
- In the U.K., the FCA dictates that regulated firms have to have a risk event workflow
- SEC, FINRA, and NCUA are pressing asset managers and credit unions to show internal accountability for missed filings, failed trades, and financial exposure.
- CSA guidance in Canada and global standards like ISO 31000 and COSO also expect organizations to maintain audit-ready records of risk events and control failures.
Regulators don’t just care about risk forecasts. They want proof of what you did when something actually went wrong. Did you log the event? Assign an owner? Track the fix? If not, that’s where your gaps show up: during audits, compliance reviews, or executive reporting.
According to Kroll’s 2025 Financial Crime Report, over 60% of executives are placing greater emphasis on real-time visibility into operational risks, driven by regulatory expectations and reputational concerns. For GRC teams, formalizing risk event tracking is the clearest way to show control effectiveness, close the loop on recurring issues, and stay aligned with regulatory expectations. Organizations that treat risk events as strategic inputs, not just reporting obligations, build a stronger, more resilient GRC audit trail.
Common GRC risk event examples by category
A risk event is a real incident that disrupts objectives or exposes control weaknesses. For example, a bank processes a $50 million trade as $5 million due to a data-entry error. This early identification of the event allows for faster remediation, strengthening controls and supporting a proactive risk culture. This speed and consistency is essential for banks, insurers, and credit unions facing audit and compliance pressure. But risk events can happen anywhere in your business. Here are common GRC risk event examples by type:
| Category | Example Risk Event | |
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Operational | Missed SLAs, data entry errors, failed process handoffs. |
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Regulatory | Late filings, missed reporting deadlines, non-compliance with regulatory requirements, missing required attestations. |
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Reputational | Public ethics violation, negative media, whistleblower complaints. |
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Cybersecurity | Unflagged phishing attempt, unauthorized access, critical system downtime. |
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Fraud/Internal | Expense fraud, vendor kickbacks, unapproved wire transfers. |
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Third-Party | Vendor breach, contractual failure, outsourced service outage |
In financial services and other regulated sectors, many of these events must be documented and remediated as part of capital planning or audit prep.
Why is it important to track risk events in GRC?
When a risk event goes unreported, it can resurface in the next audit. Worse, an unlogged risk event can lead to repeat losses. Logging events isn’t limited to meeting compliance requirements. Having centralized risk event data helps risk and compliance teams uncover weak controls, spot recurring issues, and connect risks to real-world root causes.
That’s why leading GRC programs use a structured lifecycle to capture, assess, and resolve events, while building stronger oversight in the process.
Real-world risk event example
Let’s walk through a real-world risk event scenario and how structured tracking turns a potential failure into an audit asset.
Imagine a front-office team enters a $50M trade, but a keying error logs it as $5M. No system alert is triggered. That’s a risk event: A financial exposure caused by a failed control.
The incident is the resulting $45M discrepancy that wasn’t flagged by internal controls, putting the firm at serious financial and reputational risk. The issue? There was no second-level approval process in place to catch the error before booking.
In a mature GRC program, that risk event would follow a structured lifecycle:
- The error is submitted via an internal intake form.
- It’s classified as a financial risk event and tied to the impacted business unit.
- Root cause is tagged as a control design failure.
- The appropriate owner is notified, and corrective actions are launched.
- Updates are logged throughout the response process.
- When auditors request documentation, the full record is already in place.
This kind of audit-ready risk tracking gives teams a real-time view of control breakdowns, and ensures nothing slips through the cracks.
How to get started with GRC risk event tracking
If you’re not formally tracking risk events yet, start with:
- Define what qualifies as a risk event
- Use a shared intake form across the business
- Assign clear ownership to each event
- Track root cause and resolution in a centralized register
Even a basic GRC intake process goes a long way. Over time, it supports stronger reporting, clearer accountability, and early detection of repeat issues.
What an effective risk event tracking workflow looks like
Most GRC teams don’t need more tools. They need clear intake, consistent tagging, and a reliable record when audit comes around. The right GRC platform makes it easy to log risk events, tag root causes, link them to controls, so you can show auditors exactly what was done.
That’s what Resolver’s Risk Management software delivers. From first capture to final remediation, it gives teams the structure to track risk events, link them to controls, and avoid repeat failures.
GRC risk event FAQs
Still have questions? Here are the top things GRC teams ask when starting to formalize risk event tracking.
Q: What qualifies as a risk event in GRC?
Any actual event, from near-miss to loss, that exposes a weakness in your processes, systems, or controls.
Q: Who logs GRC risk events?
Often the front-line teams. Risk and compliance functions oversee classification, root cause, and follow-up.
Q: Why not just track incidents or issues?
Incidents show impact. Issues show causes. But risk events show when risk becomes real, and tie the two together.
Q: How do other teams encourage employees to log risk events?
Adoption starts with ease of use. Resolver integrates with email, Microsoft Teams, and internal portals, making it easy for employees to capture events without logging into a new system.
Q: What regulators or standards does Resolver explicitly support?
Resolver helps customers align to key frameworks including ISO 31000, COSO, FFIEC, OSFI, Basel III, HIPAA, and GDPR.
Q: Does risk event management software support auto-classification or tagging of risk events?
Yes. Many modern GRC platforms, including Resolver, offer template-based classification tools that accelerate tagging and improve consistency.
