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OCEG GRC Professional Certification Exam Sample Questions (Q24-Q29):

NEW QUESTION # 24
What is the essence or the central meaning of GRC?

A. A framework for managing financial risks and ensuring fiscal responsibility
B. A connected and integrated approach that provides a pathway to Principled Performance by overcoming VUCA and disconnection
C. A system for monitoring and evaluating the performance of employees and teams
D. A set of guidelines and regulations for corporate governance and ethical conduct

Answer: B

Explanation:
The essence ofGRC (Governance, Risk, and Compliance)lies in creating aconnected and integrated approachthat enables organizations to achieve their goals throughPrincipled Performancewhile managing uncertainty and fostering ethical operations.
* Pathway to Principled Performance: GRC focuses on achieving a balance between objectives, risks, and compliance in a manner that aligns with ethical practices and organizational values.
* Overcoming VUCA:
* VUCAstands forVolatility, Uncertainty, Complexity, and Ambiguity, which are common challenges in modern organizational environments.
* GRC integrates processes, communication, and systems to navigate these challenges effectively.
* Avoiding Disconnection: Disconnection in governance, risk management, and compliance activities can lead to inefficiency, misaligned objectives, and increased vulnerability. GRC ensures seamless integration and collaboration across departments.
References:
* OCEG's GRC Capability Model: Highlights how GRC helps achieve Principled Performance by harmonizing governance, risk, and compliance with organizational goals.
* COSO and ISO 31000 Frameworks: Stress the importance of connected approaches for better risk management and performance outcomes.

NEW QUESTION # 25
How do values influence the way an organization operates?

A. They dictate the organization's pricing strategy and revenue generation
B. They determine the organization's market share and competitive positioning as part of assessing its financial value to shareholders
C. They set voluntary boundaries for how the organization operates and often explain design decisions about the operating model
D. They establish the organization's code of conduct

Answer: C

Explanation:
Values represent the fundamental principles and beliefs that guide an organization's culture, decision-making, and behavior. They serve as a compass for how the organization operates, interacts with stakeholders, and achieves its objectives.
Role of Values in Operations:
Setting Boundaries:
Values define ethical standards and voluntary limits within which the organization operates, even if these exceed regulatory requirements.
For example, a company may adopt sustainability practices beyond legal requirements because they align with its values.
Guiding Design Decisions:
Values influence how the organization's operating model is structured, including processes, policies, and resource allocation.
For instance, a value-driven emphasis on innovation may lead to investment in R&D.
Why Option B is Correct:
Option B accurately describes how values set voluntary boundaries and shape decisions about the operating model.
Option A (establishing a code of conduct) is a subset of how values are operationalized, not their full role.
Options C and D focus on financial or competitive aspects, which are influenced by broader strategies rather than values alone.
Relevant Frameworks and Guidelines:
OCEG Principled Performance Framework: Highlights the role of values in shaping culture and decision-making processes.
ISO 37001 (Anti-Bribery Management System): Recommends embedding values into governance systems to promote ethical conduct.
In summary, organizational values set boundaries for operations and guide the design of the operating model, ensuring alignment with ethical principles, stakeholder expectations, and long-term objectives.

NEW QUESTION # 26
What is the objective of improving actions and controls to address root causes and weaknesses associated with unfavorable events?

A. To escalate incidents for investigation and identify them as in-house or external.
B. To provide incentives to employees for favorable conduct.
C. To determine if, when, how, and what to disclose regarding unfavorable events.
D. To ensure that future events of similar nature are less likely to occur and are less harmful.

Answer: D

Explanation:
The primary objective of improving actions and controls is to address root causes and weaknesses to prevent the recurrence of unfavorable events and mitigate their impact.
Key Objectives:
Reduce the likelihood of similar unfavorable events occurring in the future.
Minimize the harm caused by such events if they do occur.
Steps to Address Root Causes:
Conduct thorough investigations to identify the underlying issues.
Enhance or implement new controls to address identified gaps.
Why Other Options Are Incorrect:
A: Escalating incidents is part of incident management, not the improvement of controls.
B: Incentives promote favorable conduct but do not address root causes.
C: Disclosure decisions are a separate consideration from improving controls.
Reference:
COSO ERM Framework: Highlights addressing root causes to strengthen controls.
OCEG GRC Capability Model: Recommends continuous improvement of actions and controls.

NEW QUESTION # 27
What are the three orientations of actions and controls in the PERFORM component?

A. Short-term, medium-term, and long-term orientations
B. Management, governance, and assurance orientations
C. Financial, operational, and reputational orientations
D. Strategic, operational, and tactical orientations

Answer: D

NEW QUESTION # 28
In the IACM, what is the role of Governance Actions & Controls?

A. To assist the governing authority in constraining and constraining the organization
B. To develop and implement innovative business strategies
C. To engage with stakeholders and address their concerns
D. To monitor and evaluate the performance of suppliers and vendors

Answer: A

Explanation:
Governance Actions & Controlsin theIACMprovide the framework for oversight, accountability, and decision-making within an organization. These controls ensure that the organization operates within its defined boundaries while meeting its strategic objectives.
Key Points About Governance Actions & Controls:
* Purpose:
* Governance controls set theboundarieswithin which the organization must operate, ensuring that actions align with strategic priorities, regulatory requirements, and stakeholder expectations.
* Examples include board-level oversight, policy creation, and corporate governance frameworks.
* Constraining and Constraining:
* Governance ensures that actions are restricted to align with legal, ethical, and organizational values, preventing mismanagement or unethical practices.
Why Option A is Correct:
Governance Actions & Controls focus onassisting the governing authorityin setting constraints and boundaries for the organization, ensuring accountability and alignment with its goals.
Why the Other Options Are Incorrect:
* B: Developing strategies is not the primary focus of governance actions but a strategic planning activity.
* C: Engaging with stakeholders is part of communication and public relations, not governance controls.
* D: Monitoring suppliers is part of operational or procurement management, not governance.
References and Resources:
* OECD Principles of Corporate Governance- Focuses on governance responsibilities.
* COSO ERM Framework- Highlights governance as a critical component of enterprise risk management.

NEW QUESTION # 29
......

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