Practice Free GRCP Exam Online Questions
What is the primary objective of Lean as a technique for improvement?
- A . To maximize profits and shareholder value
- B . To improve communication and collaboration
- C . To eliminate waste and increase efficiency
- D . To enhance customer satisfaction and loyalty
What is the purpose of implementing ongoing and periodic review activities?
- A . To eliminate the need for external audits.
- B . To reduce the overall cost of operations.
- C . To gauge the effectiveness, efficiency, responsiveness, and resilience of actions and controls.
- D . To have documentation for use in defending against enforcement or legal actions.
What is the role of sensemaking in understanding the internal context?
- A . Sensemaking involves analyzing the organization’s supply chain to identify potential bottlenecks and make any necessary changes in how it is managed.
- B . Sensemaking involves evaluating the organization’s sense of all aspects of its culture so that improvements can be made.
- C . Sensemaking involves conducting financial audits to make sense of the financial condition of the organization and ensure compliance with accounting standards.
- D . Sensemaking involves continually watching for and making sense of changes in the internal context that have a direct, indirect, or cumulative effect on the organization.
In the context of GRC, what is the significance of setting objectives that are specific, measurable, achievable, relevant, and timebound (SMART)?
- A . SMART objectives can be more easily communicated to stakeholders to gain their confidence
- B . SMART objectives allow the organization to avoid accountability and responsibility for failing to achieve objectives
- C . SMART objectives provide clarity, focus, and direction and help ensure that objectives are effectively aligned with the organization’s goals and priorities
- D . SMART objectives are only relevant for financial objectives and have no impact on non-financial objectives
How do the four dimensions of Total Performance contribute to a comprehensive assessment of an organization’s GRC capability?
- A . By determining the budget allocation for GRC programs and where resources should be applied
- B . By evaluating the performance of departments and individual employees in the context of GRC needs in their roles
- C . By ensuring compliance with legal and regulatory requirements across the organization as a whole and by department
- D . By providing a holistic view of an organization’s GRC capability, evaluating its soundness, cost-effectiveness, agility and ability to withstand disruptions
Who has ultimate accountability (plenary accountability) for the governance, management, and assurance of performance, risk, and compliance in the Lines of Accountability Model?
- A . The Fifth Line, or the Governing Authority (Board).
- B . The Second Line, or the individuals and teams that establish performance, risk, and compliance programs.
- C . The First Line, or the individuals and teams involved in operational activities.
- D . The Third Line, or the individuals and teams that provide assurance.
Which aspect of culture includes constraining and conscribing the organization, including how the governing authority and executive team are engaged, and whether leadership models behavior in words and deeds?
- A . Performance culture
- B . Governance culture
- C . Assurance culture
- D . Management culture
In the context of uncertainty, what is the difference between likelihood and impact?
- A . Likelihood is a measure of the chance of an event occurring, while impact is the location of the event within the organization.
- B . Likelihood is a measure of the chance of an event occurring, while impact is the category or type of risk or reward from the event.
- C . Likelihood is a measure of the chance of an event occurring, while impact measures the economic and non-economic consequences of the event.
- D . Likelihood is the chance of an event occurring after controls are put in place, while impact measures the economic and non-economic consequences of the event.
What are some examples of non-economic incentives that can be used to encourage favorable conduct?
- A . Appreciation, status, professional development
- B . Stock options, salary increases, bonuses, and profit-sharing
- C . Gift baskets, extra vacation time, and employee competitions
- D . Health insurance, retirement plans, paid time off, and sick leave
How can organizations encourage the occurrence of positive events while preventing negative ones?
- A . Through implementing proactive actions and controls
- B . Through employee training and follow-up
- C . Through using financial actions and controls
- D . Through relying on responsive actions and controls