The GRC Engineer robotGRC Engineer
$ open state-of-grc --year 2026 --independent

795 practitioners
told the truth.

The largest independent survey of GRC practitioners — no vendor funding, no sponsor influence, no analyst filter. This is what the industry actually looks like.

INDEPENDENT NO VENDOR MONEY APR 2025 – MAR 2026
0RESPONDENTS
0%USE NO COMMERCIAL TOOL
0%OF CISOs USE THE MARKET LEADER
01

Why this report exists

RESEARCH WITHOUT THE COMMERCIAL PRESSURE

Every year, analysts and vendors publish reports about the GRC market. They survey their own customers, interview their own prospects, and produce findings that conveniently validate their own positioning.

"The research is funded by the companies being evaluated. The conclusions are shaped by the relationships that fund the analysis."— WHY 795 INDEPENDENT RESPONSES MATTER

Most GRC market reports survey 100 to 300 people, primarily enterprise buyers sourced through vendor relationships. This survey reached nearly 800 practitioners across every seniority level, team size, and practitioner type — the full spectrum, not just the segment that takes analyst calls.

When the data says the #1 GRC tool is still a spreadsheet, there is no commercial pressure to soften that message.
02

Who responded

BUILDERS, ADVISORS & ASSESSORS — THE FULL GRC TRIANGLE
RESPONDENTS BY ROLE
GRC practitioners
~70%
Security teams
14%
Vendors
5.2%
GRC content resonates beyond the traditional compliance audience — one in seven respondents came from security teams.
SENIORITY — THESE ARE THE BUDGET HOLDERS
Director & above
29.8%
Senior
22%
Intermediate
13.9%
Entry level
8.9%
These are not just tool users. They are tool buyers.
35%INDUSTRY
PRACTITIONERS
29%CONSULTANTS
8.7%AUDITORS
> INSIGHT · THE HIDDEN VARIABLE

The consultant ratio is the hidden variable in every GRC market analysis. When 29% of respondents advise multiple organizations, their tool preferences carry disproportionate influence — a single consultant recommending a tool to ten clients generates more pipeline than ten individual buyers.

The traditional vendor playbook targets the buyer at a single company. The GRC market rewards whoever wins the advisor.

03

The shape of GRC teams

SMALL, SOLO & STRUCTURALLY UNDERSERVED
51%OF TEAMS HAVE
4 PEOPLE OR FEWER
18.5%RUN GRC
COMPLETELY ALONE
56%MID-MARKET (2–10)
THE UNDERSERVED CORE

Solo does not mean junior. 40% of entry-level practitioners work solo with an average skill of 3.6 — but 19 CISOs (20.9% of all CISOs) also work solo, averaging 6.3. Same team size, completely different reality. One group is drowning. The other chose to swim alone.

42%
TEAM OF 1
USE NO TOOL AT ALL
51%
TEAM 2–4
COMMERCIAL ADOPTION
58%
TEAM 5–10
COMMERCIAL ADOPTION
62%
TEAM 11+
SPREADSHEETS COLLAPSE TO 3%
> INSIGHT · THE GRADUATION LADDER

Each team-size threshold is a buying trigger. The ladder is consistent: nothing, then spreadsheet, then commercial, then platform.

Among solo practitioners who do adopt, Vanta leads with a 7.4x overrepresentation versus its non-solo share (Fisher's exact p=0.0002). When one person runs the entire compliance function, automation is the only way the job gets done.

And 28 of those solo practitioners are entry-level — no team, no mentorship, no architecture. They default to spreadsheets because that is what they know. This is where compliance theatre is born.

04

Why spreadsheets still win

THE #1 GRC TOOL IN 2026 IS NOT A GRC TOOL
PRIMARY TOOL — TOP NON-COMMERCIAL CATEGORIES (RESPONDENTS)
Spreadsheets
93
"Custom tools"
70
Open source
38
"Custom" rarely means purpose-built. It means Jira, Notion, SharePoint — existing stacks repurposed for GRC because dedicated tools have not justified the switch.
59.1% of all practitioners are commercially unaddressed. Three out of five.
> INSIGHT · MARKET CREATION, NOT MARKET SHARE

Almost every competitor analysis in GRC starts with the wrong assumption: that you are fighting other vendors. You are fighting inertia, spreadsheets, and "I'll just use Notion."

Spreadsheets persist because many practitioners lack the technical confidence to adopt and configure a dedicated platform. The switching cost is not financial. It is cognitive.

The consultant multiplier makes it worse: 64.9% of consultants use non-commercial solutions — an estimated 1,480 annual decisions steered away from commercial GRC products. The most influential distribution channel in the industry is actively recommending against the category.

05

Buyers don't use the market leader

THE MOST PROVOCATIVE FINDING IN THE SURVEY
7.4%OF CISOs USE SERVICENOW
(17.3% FOR EVERYONE ELSE)
73.6%OF CISOs USE NO
COMMERCIAL TOOL AT ALL
6.5CISO AVG TECHNICAL SKILL —
THE MOST CAPABLE LEVEL

The people who approve GRC budgets don't use the market leader. Custom builds, spreadsheets, open source, or nothing — the budget holders have rejected the entire category. And they know what's available: CISOs evaluate tools rigorously, and they're choosing to build rather than buy.

> INSIGHT · THE AUDITOR PROBLEM

The Director level is the most contested buyer segment in the dataset (HHI 924 — the lowest concentration of any seniority level). Every vendor has a shot. Nobody has a lock.

And then there's the auditor problem: your customer invests in a platform that produces evidence in structured formats. Their auditor expects screenshots and spreadsheet exports. The platform's value collapses — not because the product failed, but because the person validating the output won't accept the format.

06

Your tool choice is a mirror

EVERY TOOL HAS A FINGERPRINT — SKILL × TEAM SIZE

Drata

TECHNICAL MID-MARKET
  • Most technical users in the sample: 6.5 avg, zero below 4
  • 60% score 7 or higher
  • Most balanced team-size distribution of any vendor

Vanta

AUTOMATION-FIRST STARTUP
  • Strong technical users: 6.0 avg
  • Dramatic small-team skew: 30% solo, 36% in teams of 2–4
  • The power user is the one-person compliance department

ServiceNow · AuditBoard

ENTERPRISE INCUMBENT
  • Mid-range skill (5.3), 43% of users in teams of 11+
  • AuditBoard mirrors it: 68% in teams of 5+
  • Bought on integration, not capability

Open Source

THE POLARIZED SIGNAL
  • 69% of users at the skill extremes, only 31% mid
  • Ahead of OneTrust. Ahead of Archer.
  • 21% CISOs, 45% consultants — the influencers
> INSIGHT · THE MARKET IS CONSOLIDATING

Tool-choice entropy is decaying: early respondents reported 21 distinct tools (Shannon entropy 3.71 bits); later cohorts converged on 13 (3.25 bits). The long tail is already shrinking.

The open-source signal is the one to watch. As the industry trends more technical, adoption accelerates — and commercial vendors attracting technical buyers are not competing with each other. They're competing with build-it-yourself.

07

The industry's defining challenge

THE SKILLS GAP IS THREE PROBLEMS WEARING ONE LABEL
SELF-REPORTED TECHNICAL SKILL — 258 INDUSTRY PRACTITIONERS
Low (1–3)
20.5%
Mid (4–6)
50.4%
High (7–10)
29.1%
Average 5.3, median 5.5 — half the industry sits between spreadsheet defaults and automation capability. And 62.3% of mid-skill practitioners already OWN a commercial tool. They bought the platform. They can't unlock it.
THE FLAT MIDDLE — AVG SKILL BY SENIORITY (1–10)
Entry level
3.9
Intermediate
5.1
Manager
5.2
Senior Manager
5.0
Director
5.4
CISO
6.5
Four levels spanning a decade of career progression, separated by less than half a point. Promotion doesn't come with technical growth.
> INSIGHT · THREE PROBLEMS, ONE LABEL

A capability gap, not an access gap. Mid-skill practitioners have tools and budget. They lack the confidence to move beyond default configurations. Vendor onboarding solves the first week; nobody solves months two through twelve.

A career structure problem. GRC has no technical forcing function between years 3 and 15. You can reach Director without writing a policy-as-code rule or configuring an API integration. The ladder doesn't reward technical growth because it doesn't require it.

A composition problem, not a development problem. The industry looks more technical because the audience expanded to include engineers and security professionals (avg 6.3) — not because existing practitioners (avg 5.3) built new skills. That bridge isn't a training program. It's a hiring pattern.

08

Five strategic takeaways

WHAT THE NEXT YEAR WILL BE DECIDED BY

The mid-market is the battleground

59% of practitioners use no commercial GRC tool. No tool holds above 18% share even among tool users. Salesforce holds 21% of CRM; ServiceNow 42% of ITSM; Datadog 52% of observability. GRC's top "vendor" is a spreadsheet — the least consolidated major enterprise software category in the market.

Enterprise is decided. For now.

ServiceNow owns enterprise GRC with 34 users in the 11+ segment — nearly 5x spreadsheet usage there. The real question: can automation vendors grow their footprint before ServiceNow absorbs their innovations?

The open source threat is real

38 users — ahead of OneTrust, ahead of Archer. Average skill 6.3, 21% CISOs, 45% consultants. The most technically skilled, most senior, most influential practitioners choose open source.

CISOs don't trust the category

7.4% of CISOs use ServiceNow. The most important buyer segment prefers custom tools, spreadsheets, and open source over every commercial platform — an underlying trust problem with the key security persona.

The skills gap is the biggest strategic issue

Every finding in this report traces back to it. Spreadsheet dependency, CISO custom builds, mid-market fragmentation — all downstream of one number: 5.3 average technical skill. The next year will be defined by which side of this gap you're on.

09

Methodology

SHOW YOUR WORK — DATA INTEGRITY IN THE OPEN
$ cat methodology.txt

Platform: Beehiiv subscription form · Period: April 2025 – March 2026 · Responses: 795 (748 unique after dedup) · Distribution: GRC Engineer newsletter subscribers and community.

Integrity: 44 emails submitted more than once; analysis uses the latest response per unique email. 32 vendor employees identified via domain matching; 15 of 22 who answered the tool question selected their own product — included but flagged.

Completeness: three structural tiers (5, 6, 7 questions answered by 140/253/399 respondents). Entry-level respondents are 3.9x overrepresented among partial responders; tool-share data skews mid-career and senior.

Bias: respondents self-selected from a GRC-focused audience; results may over-represent practitioners actively investing in professional development. Skill is self-assessed (1–10); interpret within seniority bands.

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