Enhancing Public Procurement Through GRC Management: Navigating the Evolving EU Regulatory Landscape

Abstract

The increasing complexity of the extensive regulatory frameworks in the European Union (EU) creates significant challenges for public procurement processes. Besides the existing Public Procurement Directives, new regulations, such as the Corporate Sustainability Reporting Directive (CSRD), the Corporate Supply Chain Due Diligence Directive (CSDDD), and the EU Taxonomy Regulation introduce intricate compliance requirements that strain existing procurement standards and systems. This paper explores the pivotal role of Governance, Risk, and Compliance (GRC) frameworks as enablers of legal interoperability and process optimization in this evolving landscape. The research first develops an overview matrix categorizing EU regulations from 2021 to 2027 based on their relevance and impact on public procurement. Building on this foundation, a second matrix maps tailored solution components to core challenges posed by high impact regulations, identifying critical areas requiring intervention. Synthesizing these findings, the paper proposes enhancements to current standards for electronic public procurement. These include extending the European Single Procurement Document (ESPD), introducing standalone reporting formats, and leveraging GRC software to manage compliance complexities. The study highlights the importance of integrating GRC frameworks with scalable, AI-driven solutions to foster legal interoperability and operational resilience. It therewith offers actionable insights for policymakers, for practitioners in the public procurement processes, and for researchers.