Most Recent OCEG GRCP Exam Questions & Answers

Timely disclosures about the resolution of issues are necessary to comply with legal requirements and reassure stakeholders that 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.

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

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

Ongoing and periodic review activities are designed to evaluate the performance of actions and controls in terms of their effectiveness, efficiency, responsiveness, and resilience.

Purpose of Reviews:

Effectiveness: Ensures objectives are being met.

Efficiency: Confirms optimal use of resources.

Responsiveness: Measures the speed of adaptation to changes or issues.

Resilience: Assesses the ability to recover from disruptions.

Why Other Options Are Incorrect:

A: Reviews complement external audits, not replace them.

B: Cost reduction may be a result but is not the primary purpose.

D: Documentation for legal defenses is a secondary benefit, not the main goal.

COSO ERM Framework: Highlights the role of reviews in assessing risk management and control performance.

OCEG GRC Capability Model: Recommends regular reviews for continuous improvement.

Policies serve as essential tools within an organization to set clear expectations for behavior, actions, and decision-making.

Primary Purpose:

Establish clear expectations of conduct for employees, contractors, vendors, and other stakeholders.

Provide guidance on acceptable behavior and operational standards across the organization.

Significance:

Policies align stakeholder actions with organizational values and objectives.

They act as a foundation for procedures, controls, and compliance initiatives.

Why Other Options Are Incorrect:

B: While policies support compliance, their scope extends beyond regulatory requirements.

C: Policies do not eliminate the need for procedures; they complement them.

D: Generic policies like Codes of Conduct are essential, even with regulation-specific policies.

ISO 37301 (Compliance Management Systems): Emphasizes policies for setting conduct expectations.

COSO ERM Framework: Highlights policies as governance tools for consistent behavior.

Likelihood and impact are key factors in evaluating uncertainty, especially in the context of risk and reward.

Likelihood:

Measures the probability or chance of an event occurring.

Example: The likelihood of a data breach based on historical trends.

Impact:

Measures the economic and non-economic consequences of the event.

Examples: Financial losses, reputational damage, or operational disruptions.

Why Other Options Are Incorrect:

A: Impact refers to consequences, not the location of the event.

B: Impact is not limited to categories; it involves actual consequences.

D: Likelihood considers controls but is not exclusively post-control.

ISO 31000 (Risk Management): Defines likelihood and impact as fundamental components of risk assessment.

COSO ERM Framework: Emphasizes assessing both likelihood and impact in risk evaluation.

Evaluating costs and benefits during the design phase ensures that design decisions are economically justified and aligned with organizational goals.

Purpose of Cost-Benefit Evaluation:

Ensures that the investment in design delivers value exceeding the costs incurred.

Helps balance resources, risks, and expected outcomes.

Key Benefits:

Avoids overinvestment in unnecessary controls or processes.

Aligns decision-making with organizational priorities and strategic goals.

Why Other Options Are Incorrect:

A: This is an unethical and shortsighted approach, not a principle of cost-benefit evaluation.

B: Determining employee allocation is part of resource management, not the primary purpose of cost-benefit evaluation.

C: Customer insights are valuable but do not pertain specifically to cost-benefit analysis during design.

OCEG GRC Capability Model: Highlights cost-benefit evaluation in designing effective actions and controls.

ISO 31000 (Risk Management): Recommends cost-benefit analysis for risk treatment options.