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OCEG GRC Professional Certification Exam Sample Questions (Q172-Q177):
NEW QUESTION # 172
In the context of GRC, which is the best description of the role of governance in an organization?
Answer: D
Explanation:
Governance in the context of GRC refers to the processes, policies, and structures by which an organization is directed, controlled, and evaluated to ensure that it meets its objectives ethically and effectively. The correct description is "indirectly guiding, controlling, and evaluating an entity by constraining and conscribing resources." Key Role of Governance:
Governance provides oversight and sets the strategic direction for the organization.
It establishes policies and frameworks to guide decision-making and resource allocation.
Ensures accountability and alignment of activities with organizational objectives, regulatory requirements, and ethical principles.
Why Option B is Correct:
Governance is not about direct operational involvement (e.g., marketing, auditing, or day-to-day activities). Instead, it provides the high-level framework within which these activities occur.
It ensures that the organization's resources are constrained (limited and directed) toward its strategic goals, avoiding waste and ensuring compliance.
Relevant Frameworks and Guidelines:
COSO ERM Framework: Highlights the importance of governance as a foundational component in enterprise risk management.
ISO 37000 (Governance of Organizations): Provides principles for good governance, emphasizing accountability, oversight, and ethical leadership.
In summary, governance is an indirect yet vital mechanism that provides the foundation for effective decision-making, resource allocation, and compliance within an organization.
NEW QUESTION # 173
What is the role of indicators in measuring progress toward objectives?
Answer: D
Explanation:
Indicators are critical tools for measuring progress toward achieving objectives by tracking quantitative or qualitative metrics.
Role of Indicators:
Provide insights into whether the organization is on track to meet its goals.
Help identify gaps, strengths, and opportunities for improvement.
Examples: Productivity metrics, compliance rates, or customer retention rates.
Types of Indicators:
Quantitative: Numeric measures like revenue growth or employee turnover rates.
Qualitative: Observations or evaluations, such as stakeholder satisfaction.
Why Other Options Are Incorrect:
A: Indicators measure progress, not the appropriateness of objectives.
C: Objective selection evaluation occurs during the planning phase, not progress measurement.
D: ROI calculations are a subset of financial analysis, not the overall role of indicators.
Reference:
OCEG GRC Capability Model: Emphasizes indicators in monitoring objectives.
Balanced Scorecard Framework: Uses indicators to measure organizational performance.
NEW QUESTION # 174
Which "most important stakeholder" judges whether an organization is producing, protecting, or destroying value?
Answer: B
Explanation:
Customersare often considered the "most important stakeholder" because they ultimately determine the value created by an organization through their purchasing decisions and feedback.
* Role of Customers in Value Assessment:
* If customers perceive the organization's offerings as valuable, they provide revenue and support.
* Negative perceptions can lead to reputational harm and loss of market share.
* Why Customers are Key:
* Organizations exist to fulfill customer needs, and customer satisfaction directly influences business success.
* Why Other Options Are Incorrect:
* B: Risk managers oversee risk, not value perception.
* C: The board provides governance but does not directly judge value creation from an external perspective.
* D: The ethics department ensures ethical practices but does not directly determine customer- perceived value.
References:
* OCEG GRC Capability Model: Highlights customers as central to value creation.
* Customer-Centric Business Models: Emphasize the importance of aligning operations with customer needs.
NEW QUESTION # 175
Which of these would not trigger the reconsideration of internal factors within an organization?
Answer: C
Explanation:
Ordinary seasonal fluctuations in purchases are predictable and typically accounted for in existing business plans, so they do not necessitate a reconsideration of internal factors.
Why Ordinary Seasonal Fluctuations Are Excluded:
These variations are expected and manageable within normal operating procedures.
They do not signify a fundamental change requiring strategic reassessment.
Triggers for Reconsidering Internal Factors:
A: External economic conditions may require internal adjustments to mitigate risks.
C: Competitive actions can influence market positioning and internal strategies.
D: Regulatory changes necessitate compliance adjustments.
Reference:
PESTEL Analysis: Highlights when external factors may necessitate changes in internal contexts.
COSO ERM Framework: Links external triggers to internal strategy revisions.
NEW QUESTION # 176
Why is continual improvement considered a hallmark of a mature and high-performing capability and organization?
Answer: D
Explanation:
Continual improvement is essential for a mature organization as it ensures that processes, systems, and capabilities are consistently evolving to meet changing needs and enhancing performance.
Importance of Continual Improvement:
Evolution: Adapts to new challenges, opportunities, and risks.
Enhanced Performance: Increases efficiency, effectiveness, and overall resilience.
Characteristics of High-Performing Organizations:
They embed continual improvement in their culture and processes.
They focus on iterative refinement and innovation.
Why Other Options Are Incorrect:
A: Market share growth may be a result but is not the primary reason for continual improvement.
C: Compliance is a requirement, but continual improvement focuses on overall performance, not just regulatory adherence.
D: Employee turnover reduction may occur as a side benefit but is not the central focus.
Reference:
ISO 9001 (Quality Management Systems): Highlights continual improvement as a key principle.
OCEG GRC Capability Model: Describes continual improvement as critical for organizational maturity.
NEW QUESTION # 177
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