GRC Governance Frameworks & Best Practices 3

Question 1

Which component of the COSO ERM framework 2017 update reflects the integration of strategy-setting with enterprise risk management?

Accepted Answer

Strategy and objective-setting

Answer

The 2017 COSO ERM update emphasized 'Strategy and Objective-Setting' as the component linking ERM directly to organizational strategy.

Question 2

A governance framework requires that policies cascade through an organization. Which document type sits directly below a board-approved policy?

Accepted Answer

Standard

Answer

Standards define mandatory, specific requirements that support policies, while procedures describe how to implement standards.

Question 3

The OECD Principles of Corporate Governance emphasize 'equitable treatment of shareholders,' which specifically addresses:

Accepted Answer

Ensuring all shareholders, including minorities, have equal voting rights

Answer

Equitable treatment requires that minority and foreign shareholders receive the same protections and voting rights as majority shareholders.

Question 4

In IT governance, a 'tollgate' review is best described as:

Accepted Answer

A formal checkpoint where a project must meet criteria before proceeding

Answer

A tollgate review is a structured decision point where stakeholders evaluate whether a project meets predefined criteria before authorizing the next phase.

Question 5

Which ISO standard specifically provides guidance on governance of information security, acting as a companion to ISO/IEC 27001?

Accepted Answer

ISO/IEC 27014

Answer

ISO/IEC 27014 provides guidance on governance of information security for board-level and executive evaluation, direction, and monitoring.

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

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

GRC Governance Frameworks & Best Practices 3