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100% Pass Quiz 2025 Authoritative GRCP: Free GRC Professional Certification Exam Study Material

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OCEG GRC Professional Certification Exam Sample Questions (Q140-Q145):

NEW QUESTION # 140
What type of policy provides instructions on what actions should be avoided by the organization?

A. Prescriptive Policy
B. Procedural Policy
C. Proscriptive Policy
D. Reactive Policy

Answer: C

Explanation:
AProscriptive Policyoutlinesactions or behaviors that should be avoidedto ensure compliance, ethical conduct, and risk mitigation.
* Definition of Proscriptive Policies:
* Focus on prohibited activities or practices that may harm the organization or breach regulations.
* Example: Policies banning insider trading or discriminatory practices.
* Purpose:
* Protect the organization from legal, reputational, or operational risks by explicitly identifying unacceptable behaviors.
* Why Other Options Are Incorrect:
* A: Prescriptive policies specify actions that should be taken, not avoided.
* B: Procedural policies provide step-by-step instructions for processes, not prohibitions.
* D: Reactive policies respond to incidents after they occur, rather than proactively avoiding them.
References:
* ISO 37301 (Compliance Management Systems): Discusses proscriptive policies in regulatory compliance.
* COSO Framework: Highlights the role of policies in mitigating risk.

NEW QUESTION # 141
What is the relationship between monitoring and assurance activities in identifying opportunities for improvement?

A. Monitoring activities are related to financial improvement, while assurance activities are related to operational improvement
B. Monitoring activities focus on improvement, while assurance activities focus on risk assessment
C. Monitoring and assurance activities have no relationship and operate independently
D. Both monitoring and assurance activities identify opportunities to improve total performance

Answer: D

Explanation:
Monitoring and assurance activities are interconnected components of Governance, Risk, and Compliance (GRC) frameworks that work together to identify opportunities for improving total performance. Both play complementary roles in ensuring that organizational objectives are met efficiently and effectively.
Monitoring Activities:
Definition: Continuous observation and analysis of processes, controls, and performance metrics.
Focus: Identifies deviations, inefficiencies, or emerging risks that may require corrective action.
Example: Real-time tracking of operational performance or compliance metrics.
Assurance Activities:
Definition: Independent evaluations to verify the adequacy and effectiveness of controls, processes, and risk management.
Focus: Provides confidence to stakeholders that risks are being managed appropriately and objectives are being achieved.
Example: Internal audits or compliance assessments.
Why Option D is Correct:
Both monitoring and assurance activities contribute to improving total performance by identifying gaps, inefficiencies, and risks.
Option A is incorrect because both monitoring and assurance activities identify improvement opportunities, not just monitoring.
Option B is incorrect because monitoring and assurance activities are interrelated and support each other.
Option C incorrectly categorizes the focus of monitoring and assurance activities, which are not limited to financial or operational areas.
Relevant Frameworks and Guidelines:
COSO ERM Framework: Highlights monitoring as a key component of effective risk management and assurance as a critical layer of oversight.
ISO 9001 (Quality Management): Promotes both monitoring and independent audits to drive continuous improvement.
In summary, monitoring and assurance activities are complementary processes that work together to identify opportunities for improving total performance, enhancing the organization's ability to achieve its objectives and manage risks effectively.

NEW QUESTION # 142
Why is it essential to ensure that every issue or incident is addressed?

A. To compound and accelerate the impact of favorable events.
B. To escalate incidents for investigation and identify them as in-house or external.
C. To maintain employee and other stakeholder confidence in the system's effectiveness.
D. To provide incentives to employees for favorable conduct.

Answer: C

Explanation:
Addressing every issue or incident is critical to maintaining confidence in the organization's governance and risk management systems.
Key Reasons to Address All Issues:
Employee and Stakeholder Confidence: Demonstrates that the organization takes issues seriously and acts responsibly.
System Integrity: Ensures the effectiveness and credibility of governance and compliance frameworks.
Impact of Neglecting Issues:
Loss of trust among employees and external stakeholders.
Increased risk of repeated incidents or unresolved weaknesses.
Why Other Options Are Incorrect:
A: Incentives promote positive conduct but do not directly relate to addressing every issue.
B: Compounding favorable events is unrelated to addressing specific issues.
D: Escalation is part of issue management but does not replace the need for comprehensive resolution.
Reference:
COSO ERM Framework: Highlights the importance of addressing incidents to maintain trust in the system.
OCEG GRC Capability Model: Recommends systematic resolution of all identified issues.

NEW QUESTION # 143
What is the purpose of implementing incentives in an organization?

A. To reduce the overall cost of employee compensation and benefits.
B. To reduce the need for performance reviews and evaluations.
C. To discourage employees from seeking employment opportunities elsewhere.
D. To encourage the right proactive, detective, and responsive conduct in the workforce and extended enterprise.

Answer: D

Explanation:
The purpose of implementingincentivesis topromote desired behaviors and actionswithin the organization by aligning employee conduct with organizational goals.
* Key Purpose:
* Encourage proactive behaviors that prevent issues.
* Promote detective behaviors that identify risks and opportunities.
* Foster responsive behaviors to correct and mitigate negative events.
* Why Other Options Are Incorrect:
* A: Incentives often add to costs but are justified by their positive impact.
* B: Incentives complement performance reviews, not replace them.
* C: While they may improve retention, this is a secondary benefit, not the primary purpose.
References:
* OCEG GRC Capability Model: Discusses incentives for fostering desired conduct.
* Behavioral Economics Studies: Highlight how incentives influence organizational behavior.

NEW QUESTION # 144
What is a key difference between objectives that "Change the Organization" and those that "Run the Organization"?

A. Objectives that "Change the Organization" focus on change management, employee training and development, while objectives that "Run the Organization" focus on customer satisfaction and sales growth
B. Objectives that "Change the Organization" are related to the organization's financial performance, while objectives that "Run the Organization" are related to the organization's legal compliance
C. Objectives that "Change the Organization" are established by the board of directors, while objectives that "Run the Organization" are established by the management team
D. Objectives that "Change the Organization" inspire progress and produce new value, while objectives that "Run the Organization" allow the organization to maintain what it has achieved, preserve existing value, and notice when value erodes or atrophies

Answer: D

NEW QUESTION # 145
......

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