GRC GRC Ethics, Culture, and Stakeholder Accountability 1

Question 1

In a GRC context, 'tone at the top' refers to:

Accepted Answer

Senior leadership's visible commitment to ethical behavior and compliance

Answer

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.

Question 2

Which of the following best defines a 'code of conduct' in a corporate compliance program?

Accepted Answer

A formal document outlining the ethical principles and behavioral expectations for all employees

Answer

A code of conduct articulates the organization's values, ethical principles, and standards of behavior expected from employees, officers, and directors.

Question 3

A robust whistleblower program in a GRC framework is designed primarily to:

Accepted Answer

Encourage anonymous reporting of misconduct without fear of retaliation

Answer

A whistleblower program provides a safe, confidential channel for employees to report suspected fraud, misconduct, or compliance violations without facing retaliation.

Question 4

The Sarbanes-Oxley Act (SOX) Section 301 requires publicly traded companies to establish:

Accepted Answer

An independent audit committee with authority to oversee financial reporting and whistleblower complaints

Answer

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.

Question 5

Which of the following represents an example of a conflict of interest in a GRC setting?

Accepted Answer

A procurement officer awarding a contract to a vendor in which they hold a financial interest

Answer

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.

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

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

GRC GRC Ethics, Culture, and Stakeholder Accountability 1