OCEG Updated GRCP Exam Questions and Answers by riaan

Technology-based inquiryis advantageous because itoften provides information soonerthan traditional methods, enabling quicker responses to events and issues.

Benefits of Technology-Based Inquiry:

Real-Time Data: Enables immediate detection of issues through automated alerts or analytics.

Broader Coverage: Monitors large volumes of data and activities more efficiently than manual methods.

Why Other Options Are Incorrect:

A: Technology-based inquiry complements surveys but does not replace them entirely.

B: Information analysis is still required, even when gathered through technology.

C: Technology-based inquiry identifies both favorable and unfavorable events, not just the latter.

References:

COSO ERM Framework: Highlights the use of technology in monitoring and inquiry processes.

OCEG GRC Capability Model: Discusses technology-based tools for faster issue detection.

Timely disclosures about the resolution of issues are necessary tocomply with legal requirementsandreassure stakeholdersthat the organization is effectively managing risks and issues.

Purpose of Timely Disclosures:

Compliance: Meet regulatory requirements for transparency and accountability.

Stakeholder Confidence: Demonstrates the organization’s commitment to addressing issues responsibly.

Benefits:

Builds trust with stakeholders, including employees, investors, and regulators.

Reduces reputational risks associated with delayed or incomplete disclosures.

Why Other Options Are Incorrect:

A: Escalation is an internal process, not related to stakeholder disclosures.

B: While anonymity is important, it is not the primary reason for disclosure.

C: Disclosures do not accelerate favorable events; they address issue resolution.

References:

ISO 37002 (Whistleblowing Management Systems): Discusses the importance of transparency in issue resolution.

OCEG GRC Capability Model: Recommends timely disclosures for stakeholder confidence.

TheGovernance & Oversightdiscipline focuses onconstraining activitiesthrough policies, controls, and decision frameworks whilesetting directionto align with organizational objectives.

Constraining Activities:

Governance ensures that activities are within legal, ethical, and operational limits through policies, procedures, and oversight mechanisms.

Setting Direction:

Leadership establishes the strategic vision and guides the organization toward achieving long-term goals while adhering to its core values.

Oversight Role:

Oversight bodies like boards of directors and compliance committees monitor organizational performance and enforce accountability.

References:

COSO ERM Framework: Emphasizes governance’s role in directing and constraining activities.

NIST RMF: Highlights governance as a critical factor in risk and compliance management.

Riskis defined as theeffect of uncertainty on objectives, encompassing both positive opportunities and negative outcomes.

Definition:

In GRC and risk management, risk is the combination of the likelihood of an eventand its consequences.

Measurement:

Risk quantifies the potential negative impact on objectives due to uncertainty.

Why Other Options Are Incorrect:

B(Harm): Refers to physical or psychological damage, not a risk metric.

C(Obstacle): Refers to a challenge or barrier, not the overall concept of risk.

D(Threat): Represents a potential source of risk, not the measure itself.

References:

ISO 31000 (Risk Management): Provides a formal definition of risk and its relationship to uncertainty.

NIST RMF: Emphasizes risk management as a function of organizational objectives.