Practice Free GRCP Exam Online Questions
Question #1
Which of the following best describes the overall process of analyzing risk culture in an organization?
- A . Determining the level of risk-taking that each employee is comfortable with.
- B . Assessing the organization’s ability to attract and retain top talent that is willing to take risks to achieve objectives.
- C . Evaluating the organization’s risk appetite and tolerance levels for each type of risk.
- D . Analyzing the climate and mindsets about how the workforce perceives risk, its impact on work, and its integration with decision-making.
Correct Answer: D
D
Explanation:
Risk culture refers to the attitudes, behaviors, and mindsets that influence how risk is perceived, managed, and integrated into decision-making.
Analyzing Risk Culture:
Involves assessing the workforce’s perceptions of risk and its role in daily operations.
Focuses on how risk-related decisions are made and how the workforce understands and mitigates risk impact.
Integration with Decision-Making:
A strong risk culture ensures that risk considerations are embedded in strategic and operational decisions.
Why Other Options Are Incorrect:
A: Individual comfort levels are only a small aspect of risk culture.
B: Talent attraction and retention are related to workforce culture, not risk culture.
C: Risk appetite and tolerance are strategic metrics, not part of the cultural assessment process.
Reference: ISO 31000 (Risk Management): Discusses the role of organizational culture in risk perception and management.
COSO ERM Framework: Connects risk culture to decision-making and strategy.
D
Explanation:
Risk culture refers to the attitudes, behaviors, and mindsets that influence how risk is perceived, managed, and integrated into decision-making.
Analyzing Risk Culture:
Involves assessing the workforce’s perceptions of risk and its role in daily operations.
Focuses on how risk-related decisions are made and how the workforce understands and mitigates risk impact.
Integration with Decision-Making:
A strong risk culture ensures that risk considerations are embedded in strategic and operational decisions.
Why Other Options Are Incorrect:
A: Individual comfort levels are only a small aspect of risk culture.
B: Talent attraction and retention are related to workforce culture, not risk culture.
C: Risk appetite and tolerance are strategic metrics, not part of the cultural assessment process.
Reference: ISO 31000 (Risk Management): Discusses the role of organizational culture in risk perception and management.
COSO ERM Framework: Connects risk culture to decision-making and strategy.
Question #2
In the context of Total Performance, how is responsiveness measured in the assessment of an education program?
- A . The number of new courses added to the education program each year.
- B . The number of positive reviews received for the education program.
- C . The percentage of employees who pass the final assessment.
- D . Time taken to educate a department, time to achieve 100% coverage, and time to detect and correct errors.
Correct Answer: D
D
Explanation:
Responsiveness in the context of Total Performance measures how quickly an organization can implement and adapt its education programs to meet objectives and correct issues.
Key Metrics for Responsiveness:
Time to Educate: How quickly a department can be trained on new or updated content.
Coverage Time: The time required to achieve 100% employee participation or compliance.
Error Correction Time: The speed at which errors in training or implementation are detected and rectified.
Why Other Options Are Incorrect:
A: Adding new courses indicates growth but does not measure responsiveness.
B: Positive reviews reflect satisfaction but do not evaluate responsiveness.
C: Passing rates measure effectiveness, not how quickly objectives are achieved.
Reference: OCEG GRC Capability Model: Discusses responsiveness as a criterion for evaluating performance.
ISO 9001 (Quality Management Systems): Highlights the importance of responsiveness in training programs.
D
Explanation:
Responsiveness in the context of Total Performance measures how quickly an organization can implement and adapt its education programs to meet objectives and correct issues.
Key Metrics for Responsiveness:
Time to Educate: How quickly a department can be trained on new or updated content.
Coverage Time: The time required to achieve 100% employee participation or compliance.
Error Correction Time: The speed at which errors in training or implementation are detected and rectified.
Why Other Options Are Incorrect:
A: Adding new courses indicates growth but does not measure responsiveness.
B: Positive reviews reflect satisfaction but do not evaluate responsiveness.
C: Passing rates measure effectiveness, not how quickly objectives are achieved.
Reference: OCEG GRC Capability Model: Discusses responsiveness as a criterion for evaluating performance.
ISO 9001 (Quality Management Systems): Highlights the importance of responsiveness in training programs.
Question #3
What is the importance of mapping objectives to one another within an organization?
- A . Mapping objectives not only at the enterprise level but also across all units shows how they impact one another and how resources may be best allocated
- B . Mapping objectives not only at the enterprise level but also across all units is important for determining the compensation and bonuses of employees based on their contributions to achieving objectives
- C . Mapping objectives not only at the enterprise level but also across all units is important for creating a visual representation of the organization’s hierarchy and reporting structure
- D . Mapping objectives not only at the enterprise level but also across all units is important for identifying redundant objectives and eliminating them from the organization’s strategic plan
Correct Answer: A
Question #4
What is the term used to describe an event that may have a negative effect on objectives?
- A . Risk
- B . Hazard
- C . Obstacle (Threat)
- D . Challenge
Correct Answer: A
Question #5
What is the primary responsibility of the Fourth Line in the Lines of Accountability Model?
- A . The Fourth Line, which is the Procurement Department, is responsible for managing vendor relationships and procurement processes.
- B . The Fourth Line, which is the HR department, is responsible for providing training and development opportunities to employees.
- C . The Fourth Line, which is the Compliance Department, is responsible for establishing actions and controls to address regulatory and policy requirements.
- D . The Fourth Line, which is the Executive Team, is accountable and responsible for organization-wide performance, risk, and compliance.
Correct Answer: D
D
Explanation:
The Fourth Line in the Lines of Accountability Model refers to the Executive Team, which holds responsibility for organization-wide performance, risk, and compliance.
Primary Responsibility:
The Executive Team sets the strategic direction and ensures that governance, risk, and compliance efforts are aligned with organizational objectives.
Key Activities:
Overseeing implementation of enterprise-wide policies and controls.
Ensuring accountability at all levels for performance, risk management, and compliance.
Why Other Options Are Incorrect:
A: Procurement is an operational function under the First Line.
B: HR falls under specific functions, not organization-wide governance.
C: Compliance is a Second Line responsibility, not the Fourth Line.
Reference: OCEG GRC Capability Model: Discusses roles of the Fourth Line in overall accountability.
COSO ERM Framework: Highlights the role of executives in enterprise-wide governance.
D
Explanation:
The Fourth Line in the Lines of Accountability Model refers to the Executive Team, which holds responsibility for organization-wide performance, risk, and compliance.
Primary Responsibility:
The Executive Team sets the strategic direction and ensures that governance, risk, and compliance efforts are aligned with organizational objectives.
Key Activities:
Overseeing implementation of enterprise-wide policies and controls.
Ensuring accountability at all levels for performance, risk management, and compliance.
Why Other Options Are Incorrect:
A: Procurement is an operational function under the First Line.
B: HR falls under specific functions, not organization-wide governance.
C: Compliance is a Second Line responsibility, not the Fourth Line.
Reference: OCEG GRC Capability Model: Discusses roles of the Fourth Line in overall accountability.
COSO ERM Framework: Highlights the role of executives in enterprise-wide governance.
Question #6
How do GRC Professionals apply the concept of ‘maturity’ in the GRC Capability Model?
- A . GRC Professionals apply maturity only to the highest level of the GRC Capability Model.
- B . GRC Professionals apply maturity at all levels of the GRC Capability Model to assess preparedness to perform practices and support continuous improvement.
- C . GRC Professionals use maturity to evaluate the performance of individual employees.
- D . GRC Professionals use maturity to determine the budget allocation for GRC programs.
Correct Answer: B
B
Explanation:
The concept of maturity in the GRC Capability Model is applied across all levels to:
Assess Preparedness:
Maturity levels indicate the organization’s capability to effectively manage GRC processes.
Lower levels indicate ad hoc or chaotic processes, while higher levels reflect integration and optimization.
Support Continuous Improvement:
Organizations use maturity models to identify gaps and develop plans for improvement.
Continuous monitoring and progression through maturity levels ensure sustained growth and efficiency.
Broad Application:
Maturity is applied across the entire organization and its processes rather than focusing solely on specific individuals or programs.
Why Other Options are Incorrect:
A: Maturity applies to all levels, not just the highest.
C: Maturity is not used to evaluate individual performance; it is applied to processes and systems.
D: Budget allocation is not directly tied to maturity evaluation but may be influenced by its findings.
Reference: CMMI and OCEG GRC Capability Model: Both outline maturity as a mechanism for evaluating and improving organizational processes.
ISO 9001: Reinforces the use of maturity levels to drive quality and continuous improvement.
B
Explanation:
The concept of maturity in the GRC Capability Model is applied across all levels to:
Assess Preparedness:
Maturity levels indicate the organization’s capability to effectively manage GRC processes.
Lower levels indicate ad hoc or chaotic processes, while higher levels reflect integration and optimization.
Support Continuous Improvement:
Organizations use maturity models to identify gaps and develop plans for improvement.
Continuous monitoring and progression through maturity levels ensure sustained growth and efficiency.
Broad Application:
Maturity is applied across the entire organization and its processes rather than focusing solely on specific individuals or programs.
Why Other Options are Incorrect:
A: Maturity applies to all levels, not just the highest.
C: Maturity is not used to evaluate individual performance; it is applied to processes and systems.
D: Budget allocation is not directly tied to maturity evaluation but may be influenced by its findings.
Reference: CMMI and OCEG GRC Capability Model: Both outline maturity as a mechanism for evaluating and improving organizational processes.
ISO 9001: Reinforces the use of maturity levels to drive quality and continuous improvement.
Question #7
Which category of actions and controls in the IACM includes human factors such as structure, accountability, education, and enablement?
- A . Technology
- B . Policy
- C . Information
- D . People
Correct Answer: D
D
Explanation:
The People category in the IACM addresses human factors critical for implementing and sustaining effective actions and controls.
Human Factors:
Structure: Organizational design and role assignments.
Accountability: Ensuring individuals are responsible for actions.
Education: Providing training and awareness.
Enablement: Empowering individuals with tools and resources.
Examples:
Leadership development programs.
Defining accountability matrices.
Why Other Options Are Incorrect:
A: Technology refers to tools and systems, not human elements.
B: Policies are formal guidelines, not human-centric controls.
C: Information involves data, not human behaviors.
Reference: OCEG IACM Framework: Explains the critical role of the people category in organizational controls.
D
Explanation:
The People category in the IACM addresses human factors critical for implementing and sustaining effective actions and controls.
Human Factors:
Structure: Organizational design and role assignments.
Accountability: Ensuring individuals are responsible for actions.
Education: Providing training and awareness.
Enablement: Empowering individuals with tools and resources.
Examples:
Leadership development programs.
Defining accountability matrices.
Why Other Options Are Incorrect:
A: Technology refers to tools and systems, not human elements.
B: Policies are formal guidelines, not human-centric controls.
C: Information involves data, not human behaviors.
Reference: OCEG IACM Framework: Explains the critical role of the people category in organizational controls.
Question #8
What is the role of an assurance provider in the assurance process?
- A . They conduct activities to evaluate claims and statements about subject matter to enhance confidence.
- B . They oversee the implementation of the organization’s compliance program and policies.
- C . They conduct financial audits and issue audit reports.
- D . They develop the organization’s risk management strategy and framework.
Correct Answer: A
A
Explanation:
An assurance provider plays a key role in evaluating and assessing information or claims related to a subject matter to enhance confidence in its accuracy, reliability, and integrity.
Primary Role of Assurance Providers:
Assurance providers assess whether an organization’s statements, claims, and activities are valid and align with established criteria.
Their work helps stakeholders gain confidence in the truth and effectiveness of the information presented.
Why Other Options Are Incorrect:
B: Oversight of compliance programs is a different role, typically handled by compliance officers or the compliance department.
C: Conducting financial audits is one type of assurance activity, but the broader role is more general than just financial audits.
D: Developing risk management strategies is part of governance, not directly the responsibility of assurance providers.
Reference: COSO ERM Framework: Discusses assurance providers’ role in risk management and oversight.
ISO 19011 (Auditing Management Systems): Highlights the role of assurance in verifying compliance
and claims.
A
Explanation:
An assurance provider plays a key role in evaluating and assessing information or claims related to a subject matter to enhance confidence in its accuracy, reliability, and integrity.
Primary Role of Assurance Providers:
Assurance providers assess whether an organization’s statements, claims, and activities are valid and align with established criteria.
Their work helps stakeholders gain confidence in the truth and effectiveness of the information presented.
Why Other Options Are Incorrect:
B: Oversight of compliance programs is a different role, typically handled by compliance officers or the compliance department.
C: Conducting financial audits is one type of assurance activity, but the broader role is more general than just financial audits.
D: Developing risk management strategies is part of governance, not directly the responsibility of assurance providers.
Reference: COSO ERM Framework: Discusses assurance providers’ role in risk management and oversight.
ISO 19011 (Auditing Management Systems): Highlights the role of assurance in verifying compliance
and claims.
Question #9
What are some considerations that should be taken into account when examining an organization’s internal context?
- A . Regulatory compliance, legal disputes, and contractual obligations on a unit-by-unit or division-by-division basis
- B . How any changes to the internal context might affect supplier relationships, distribution channels, and pricing strategies
- C . Mission and vision, values, value propositions and operating models, organizational charts and operating model mapping, key department scope and purpose, and potential perverse incentives
- D . Market share, employee and customer satisfaction, and brand reputation
Correct Answer: C
C
Explanation:
When examining an organization’s internal context, the focus is on understanding the key elements that influence its ability to achieve objectives, manage risks, and comply with regulations. The internal context includes the organization’s strategy, structure, culture, and internal processes.
Key Considerations for Internal Context Analysis:
Mission and Vision: Define the organization’s purpose and long-term aspirations. These serve as a foundation for aligning activities and priorities.
Values: The principles and ethics that guide organizational behavior and decision-making.
Value Propositions and Operating Models: How the organization delivers value to stakeholders and operates efficiently.
Organizational Charts and Mapping: Provides a clear view of reporting structures, accountability, and key functions.
Key Department Scope and Purpose: Outlines the responsibilities and deliverables of each department, ensuring alignment with objectives.
Potential Perverse Incentives: Identifying incentives that might unintentionally encourage undesirable behavior (e.g., excessive risk-taking or unethical practices).
Why Option C is Correct:
Option C captures the comprehensive internal elements necessary for understanding the organization’s context.
Options A and B are narrower in focus, addressing specific aspects like compliance, supplier relationships, and pricing, but not the broader internal context.
Option D focuses on external measures (e.g., market share, customer satisfaction), which do not form part of the internal context.
Relevant Frameworks and Guidelines:
ISO 31000 (Risk Management): Recommends assessing internal context, including governance, culture, and organizational structure.
COSO ERM Framework: Highlights the importance of understanding mission, values, and organizational structure in managing risk.
In summary, examining the internal context involves analyzing the organization’s mission, values, operating models, and internal structures to ensure alignment with objectives, mitigate risks, and address potential misalignments or unintended consequences.
C
Explanation:
When examining an organization’s internal context, the focus is on understanding the key elements that influence its ability to achieve objectives, manage risks, and comply with regulations. The internal context includes the organization’s strategy, structure, culture, and internal processes.
Key Considerations for Internal Context Analysis:
Mission and Vision: Define the organization’s purpose and long-term aspirations. These serve as a foundation for aligning activities and priorities.
Values: The principles and ethics that guide organizational behavior and decision-making.
Value Propositions and Operating Models: How the organization delivers value to stakeholders and operates efficiently.
Organizational Charts and Mapping: Provides a clear view of reporting structures, accountability, and key functions.
Key Department Scope and Purpose: Outlines the responsibilities and deliverables of each department, ensuring alignment with objectives.
Potential Perverse Incentives: Identifying incentives that might unintentionally encourage undesirable behavior (e.g., excessive risk-taking or unethical practices).
Why Option C is Correct:
Option C captures the comprehensive internal elements necessary for understanding the organization’s context.
Options A and B are narrower in focus, addressing specific aspects like compliance, supplier relationships, and pricing, but not the broader internal context.
Option D focuses on external measures (e.g., market share, customer satisfaction), which do not form part of the internal context.
Relevant Frameworks and Guidelines:
ISO 31000 (Risk Management): Recommends assessing internal context, including governance, culture, and organizational structure.
COSO ERM Framework: Highlights the importance of understanding mission, values, and organizational structure in managing risk.
In summary, examining the internal context involves analyzing the organization’s mission, values, operating models, and internal structures to ensure alignment with objectives, mitigate risks, and address potential misalignments or unintended consequences.
Question #10
What does it mean for an organization to "sense" its external context?
- A . To make sense of the changes that are tracked in the external context to determine impact on the organization
- B . To evaluate the effectiveness of the organization’s monitoring of the external environment
- C . To continually watch for and make sense of changes in the external context that may have a direct, indirect, or cumulative effect on the organization and to notify appropriate personnel and systems
- D . To use qualitative methods of monitoring the organization’s external context based on experience and intuition
Correct Answer: C
C
Explanation:
In the context of GRC (Governance, Risk, and Compliance) and the LEARN component, the concept of "sensing" the external context refers to the organization’s ability to continuously monitor, interpret, and act upon changes in its external environment. These changes can impact organizational objectives, risks, and compliance requirements.
Key Aspects of "Sensing" the External Context:
Continuous Monitoring:
The organization keeps a constant watch on external factors such as regulatory changes, market dynamics, geopolitical developments, emerging risks, and stakeholder expectations.
Monitoring tools, data feeds, and analytics are often used for this purpose.
Understanding Direct, Indirect, or Cumulative Impacts:
Changes in the external environment can have immediate impacts (e.g., a new regulation) or cumulative impacts (e.g., a gradual shift in market trends).
The organization must assess how these changes could affect operations, compliance, strategy, or reputation.
Notification and Escalation:
Critical changes must be flagged and escalated to the appropriate personnel or systems to enable timely decision-making and response.
Example: A regulatory change might be escalated to compliance teams for review and action.
Why Option C is Correct:
Option C comprehensively describes the process of sensing: actively monitoring, interpreting, and escalating external context changes.
Option A is more limited in scope, focusing only on making sense of already tracked changes.
Option B emphasizes evaluation of monitoring effectiveness, which is an internal review activity, not "sensing."
Option D refers to qualitative methods but ignores the broader and systematic approach needed for effective sensing.
Key Tools and Frameworks for "Sensing":
COSO ERM Framework: Emphasizes environmental scanning as part of identifying and assessing risks.
ISO 31000 (Risk Management): Recommends regular monitoring and review of external and internal contexts.
OCEG Principled Performance Framework: Highlights "sensing" as critical for understanding environmental changes that affect organizational performance.
Examples of External Context Factors to Sense:
Regulatory or legal changes (e.g., new laws or compliance requirements).
Competitive landscape shifts (e.g., new market entrants).
Technological advancements (e.g., adoption of AI or cybersecurity tools).
Economic or geopolitical changes (e.g., inflation, political instability).
In summary, "sensing" the external context means the organization actively and continuously monitors for changes that could impact its objectives or performance, evaluates their significance, and escalates them to the relevant stakeholders or systems for action. This enables the organization to remain agile, compliant, and effective in a rapidly changing environment.
C
Explanation:
In the context of GRC (Governance, Risk, and Compliance) and the LEARN component, the concept of "sensing" the external context refers to the organization’s ability to continuously monitor, interpret, and act upon changes in its external environment. These changes can impact organizational objectives, risks, and compliance requirements.
Key Aspects of "Sensing" the External Context:
Continuous Monitoring:
The organization keeps a constant watch on external factors such as regulatory changes, market dynamics, geopolitical developments, emerging risks, and stakeholder expectations.
Monitoring tools, data feeds, and analytics are often used for this purpose.
Understanding Direct, Indirect, or Cumulative Impacts:
Changes in the external environment can have immediate impacts (e.g., a new regulation) or cumulative impacts (e.g., a gradual shift in market trends).
The organization must assess how these changes could affect operations, compliance, strategy, or reputation.
Notification and Escalation:
Critical changes must be flagged and escalated to the appropriate personnel or systems to enable timely decision-making and response.
Example: A regulatory change might be escalated to compliance teams for review and action.
Why Option C is Correct:
Option C comprehensively describes the process of sensing: actively monitoring, interpreting, and escalating external context changes.
Option A is more limited in scope, focusing only on making sense of already tracked changes.
Option B emphasizes evaluation of monitoring effectiveness, which is an internal review activity, not "sensing."
Option D refers to qualitative methods but ignores the broader and systematic approach needed for effective sensing.
Key Tools and Frameworks for "Sensing":
COSO ERM Framework: Emphasizes environmental scanning as part of identifying and assessing risks.
ISO 31000 (Risk Management): Recommends regular monitoring and review of external and internal contexts.
OCEG Principled Performance Framework: Highlights "sensing" as critical for understanding environmental changes that affect organizational performance.
Examples of External Context Factors to Sense:
Regulatory or legal changes (e.g., new laws or compliance requirements).
Competitive landscape shifts (e.g., new market entrants).
Technological advancements (e.g., adoption of AI or cybersecurity tools).
Economic or geopolitical changes (e.g., inflation, political instability).
In summary, "sensing" the external context means the organization actively and continuously monitors for changes that could impact its objectives or performance, evaluates their significance, and escalates them to the relevant stakeholders or systems for action. This enables the organization to remain agile, compliant, and effective in a rapidly changing environment.