GRC Principles and Models 3

Question 1

Which component of the COSO Internal Control framework addresses the organization's values, ethical standards, and the importance management places on integrity?

Accepted Answer

Control Environment

Answer

The Control Environment is the foundation of COSO's internal control framework, encompassing tone at the top, values, ethics, and organizational structure.

Question 2

In GRC terminology, what is 'risk tolerance' as distinct from 'risk appetite'?

Accepted Answer

The acceptable variation around a risk appetite objective

Answer

Risk tolerance defines the acceptable boundaries of variation around a specific objective, providing more granular guidance than the broader risk appetite statement.

Question 3

The principle of 'separation of duties' in GRC primarily serves to:

Accepted Answer

Prevent any single individual from controlling all aspects of a critical process

Answer

Separation of duties is a key internal control that distributes tasks across multiple people to reduce the risk of error or fraud.

Question 4

Under the NIST Risk Management Framework (RMF), what is the correct order of the first three steps?

Accepted Answer

Prepare, Categorize, Select

Answer

The NIST RMF steps in order are: Prepare, Categorize, Select, Implement, Assess, Authorize, and Monitor.

Question 5

Which governance principle requires that board members and executives avoid situations where personal interests conflict with organizational interests?

Accepted Answer

Conflict of interest management

Answer

Conflict of interest management requires individuals to disclose and abstain from decisions where personal gain could compromise their objectivity.

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

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

GRC Principles and Models 3