CGRC Governance Principles 4

Question 1

Which of the following is an example of a leading key risk indicator (KRI)?

Accepted Answer

Employee turnover rate in the compliance department

Answer

Employee turnover in compliance is a leading KRI because elevated turnover may signal future compliance failures before they occur.

Question 2

A governance structure where business units have significant autonomy in making risk and compliance decisions is characterized as:

Accepted Answer

Federated governance

Answer

Federated governance balances central oversight with business unit autonomy, allowing decentralized decision-making within defined boundaries.

Question 3

Under the Sarbanes-Oxley Act (SOX), which section requires management to assess and report on internal controls over financial reporting?

Accepted Answer

Section 404

Answer

SOX Section 404 requires management to assess the effectiveness of internal controls over financial reporting and have auditors attest to that assessment.

Question 4

Which principle requires governance processes to be proportional to the size, complexity, and risk profile of the organization?

Accepted Answer

Proportionality

Answer

Proportionality means governance controls and processes should be scaled appropriately to the organization's size, complexity, and risk level.

Question 5

Which governance role is primarily responsible for championing the GRC program and ensuring it receives adequate resources?

Accepted Answer

Executive Sponsor

Answer

An Executive Sponsor advocates for the GRC program at the senior leadership level and ensures it has the authority and resources needed to succeed.

CGRC - Certified Governance Risk and Compliance Practice Test

CGRC - Certified Governance Risk and Compliance Practice Test

CGRC Governance Principles 4