Question 1

What are some examples of action and control categories as described in the IACM?

Options :

A : Policy, process change, punishment, incentives, and employee education

B : Policy, people, process, physical, informational, technological, and financial actions and controls

C : Outsourcing, downsizing, and automation as the primary means of control

D : Random selection, trial and error, and reliance on intuition and experience

Answer: B

Question 2

What does "Effectiveness" refer to when assessing Total Performance in the GRC Capability Model?

Options :

A :

The ability of a program to ensure compliance with laws and regulations and avoid issues or incidents of noncompliance

B :

The speed at which a program is implemented and executed with a good design that can be implemented in every department

C :

The soundness and logical design of a program, its alignment with best practices, coverage of topical areas, and impact on intended business objectives

D : The cost savings achieved by implementing a GRC program

Answer: C

Question 3

In the context of GRC, what is the importance of aligning objectives throughout the organization?

Options :

A :

It ensures that superior-level objectives cascade to subordinate units and that subordinate units contribute to the most important objectives and priorities of the organization.

B :

It enables the governing authority to only focus on the highest-level objectives that are tied to financial outcomes.

C : It frees the organization to focus solely on short-term financial performance.

D :

It eliminates the need for excessive communication and collaboration between different departments within the organization.

Answer: A

Question 4

What is the difference between an organization that is being "Good" and being a "Principled Performer"?

Options :

A :

An organization must measure up to the Principled Performance definition to be a "Principled Performer," regardless of whether its objectives are subjectively perceived or preferred as "Good" or "Bad."

B : A "Principled Performer" always pursues objectives that are considered "Good" by society.

C : There is no difference: "Good" and a "Principled Performer" are synonymous.

D : A "Principled Performer" is an organization that donates a significant portion of its profits to charity.

Answer: A

Question 5

What criteria should objectives meet to be considered effective?

Options :

A : Objectives should be based only on financial metrics for each unit or department

B : Objectives should meet the SMART criteria (Specific, Measurable, Achievable, Relevant, Timebound)

C : Objectives should only have one timescale, e.g., quarterly, annually, 5 years

D : Objectives should be sought by a majority of the stakeholder categories for the organization

Answer: B

Confidently Practice Online with Free GRCP Exam Cram

Buying Options: