GRC GRC Ethics, Culture, and Stakeholder Accountability 2

Question 1

In GRC, 'accountability' at the board level primarily means that directors are responsible for:

Accepted Answer

Providing oversight and ensuring management establishes and maintains an effective governance and risk framework

Answer

Board-level accountability in GRC means directors oversee and challenge management's approach to governance and risk rather than performing operational compliance tasks themselves.

Question 2

Which of the following is a characteristic of a strong organizational compliance culture?

Accepted Answer

Compliance concerns are discussed openly and leadership consistently models expected behavior

Answer

A strong compliance culture is characterized by open communication about compliance risks, leadership modeling ethical behavior, and psychological safety for raising concerns.

Question 3

The U.S. Federal Sentencing Guidelines incentivize companies to have effective compliance programs by:

Accepted Answer

Reducing potential fines and penalties for organizations that can demonstrate a robust compliance program was in place at the time of an offense

Answer

The Federal Sentencing Guidelines allow judges to mitigate criminal fines for organizations that had effective compliance programs, creating a strong incentive for robust compliance infrastructure.

Question 4

An organization's 'risk appetite' statement in a GRC framework should be:

Accepted Answer

Approved by the board and reflect the amount of risk the organization is willing to accept in pursuit of its objectives

Answer

A risk appetite statement reflects board-approved guidance on the types and levels of risk the organization is willing to accept to achieve its strategic goals.

Question 5

Which term describes the process of embedding GRC responsibilities into the everyday roles of business unit managers rather than relegating them solely to a compliance department?

Accepted Answer

Three lines of defense model

Answer

The three lines of defense model distributes GRC responsibilities across business operations (first line), risk and compliance functions (second line), and internal audit (third line).

(GRC) Governance, Risk, and Compliance Certification Practice Test

(GRC) Governance, Risk, and Compliance Certification Practice Test

GRC GRC Ethics, Culture, and Stakeholder Accountability 2