GRC Ethics, Culture, and Stakeholder Accountability Flashcards
6 cards from real GRC practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 GRC Ethics, Culture, and Stakeholder Accountability flashcards as text
In a GRC context, 'tone at the top' refers to:
Answer: Senior leadership's visible commitment to ethical behavior and compliance
Tone at the top describes the ethical climate and culture of compliance that senior leaders establish through their own behavior and communications, which sets expectations throughout the organization.
Which of the following best defines a 'code of conduct' in a corporate compliance program?
Answer: A formal document outlining the ethical principles and behavioral expectations for all employees
A code of conduct articulates the organization's values, ethical principles, and standards of behavior expected from employees, officers, and directors.
A robust whistleblower program in a GRC framework is designed primarily to:
Answer: Encourage anonymous reporting of misconduct without fear of retaliation
A whistleblower program provides a safe, confidential channel for employees to report suspected fraud, misconduct, or compliance violations without facing retaliation.
The Sarbanes-Oxley Act (SOX) Section 301 requires publicly traded companies to establish:
Answer: An independent audit committee with authority to oversee financial reporting and whistleblower complaints
SOX Section 301 mandates that the audit committee of the board be independent and have procedures for receiving and addressing complaints about accounting and internal control matters.
Which of the following represents an example of a conflict of interest in a GRC setting?
Answer: A procurement officer awarding a contract to a vendor in which they hold a financial interest
A conflict of interest occurs when a person's private interests could improperly influence their professional decisions, such as a procurement officer financially benefiting from a vendor selection.
The primary purpose of ethics training in a compliance program is to:
Answer: Help employees recognize ethical dilemmas and make decisions aligned with organizational values and legal requirements
Ethics training builds employee awareness and judgment so they can identify and navigate ethical situations in accordance with the organization's values and applicable laws.