CGRC Governance Principles 5

Question 1

Which governance artifact maps organizational roles to specific responsibilities for risk and compliance activities?

Accepted Answer

RACI matrix

Answer

A RACI matrix defines who is Responsible, Accountable, Consulted, and Informed for each activity, clarifying governance responsibilities.

Question 2

A company's board receives a monthly dashboard of compliance metrics. This practice best demonstrates which governance principle?

Accepted Answer

Transparency and oversight

Answer

Providing the board with regular compliance metrics demonstrates transparency and enables effective oversight by the governing body.

Question 3

Which of the following represents a governance failure rather than a pure operational failure?

Accepted Answer

Systematic overriding of expense approval controls by senior management

Answer

Systematic management override of controls indicates a breakdown in governance structures designed to ensure accountability and proper oversight.

Question 4

In ISO 37000 (Governance of Organizations), which principle focuses on ensuring the organization creates value for stakeholders while managing trade-offs?

Accepted Answer

Value generation

Answer

ISO 37000's value generation principle requires governing bodies to ensure the organization creates sustainable value while balancing stakeholder interests.

Question 5

Which scenario best illustrates a conflict of interest that undermines governance effectiveness?

Accepted Answer

A board member voting on a contract award to a company they own

Answer

A board member voting on a contract with a company they own has a direct financial interest that compromises their objectivity and independence.

CGRC - Certified Governance Risk and Compliance Practice Test

CGRC - Certified Governance Risk and Compliance Practice Test

CGRC Governance Principles 5