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OCEG GRC Professional Certification Exam Sample Questions (Q248-Q253):

NEW QUESTION # 248
Why is it important for an organization to balance the needs of diverse stakeholders?

A. To ensure that all stakeholders receive equal consideration.
B. To prevent stakeholders from forming alliances against the organization.
C. To address the requests, wants, or expectations of stakeholders and inform the mission, vision, and objectives of the organization.
D. To comply with industry regulations regarding stakeholder management.

Answer: C

NEW QUESTION # 249
What are key compliance indicators (KCIs) associated with?

A. The impact of environmental and social initiatives
B. Number of non-compliance events investigated
C. The level of employee training and understanding of requirements
D. The degree to which obligations and requirements are addressed

Answer: D

Explanation:
Key Compliance Indicators (KCIs)are metrics that evaluate how well an organization meets itslegal, regulatory, and policy-based obligations.
* Obligations and Requirements:
* KCIs measure the effectiveness of compliance programs by tracking adherence to regulations, standards, and internal policies.
* Examples of KCIs:
* Percentage of compliance with mandatory training completion.
* The number of corrective actions implemented after audits.
* Adherence to environmental, safety, or industry-specific standards.
* Why Other Options Are Incorrect:
* A(Non-compliance events): Measures failures, not compliance effectiveness.
* B(Training): Is one of many components but not the overall measure.
* C(Environmental initiatives): Relates to sustainability metrics, not compliance.
References:
* ISO 37301 (Compliance Management Systems): Highlights KCIs as a tool for measuring adherence to compliance obligations.
* COSO Framework: Stresses the importance of monitoring compliance through KPIs and KCIs.

NEW QUESTION # 250
Why is it essential to ensure that every issue or incident is addressed?

A. To escalate incidents for investigation and identify them as in-house or external.
B. To compound and accelerate the impact of favorable events.
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 # 251
How can organizations encourage the occurrence of positive events while preventing negative ones?

A. Through relying on responsive actions and controls
B. Through implementing proactive actions and controls
C. Through employee training and follow-up
D. Through using financial actions and controls

Answer: B

Explanation:
Organizations can encourage positive events and prevent negative ones by implementingproactive actions and controls. Proactive controls arepreventive measuresdesigned to address risks and opportunitiesbefore they occur, reducing the likelihood of undesirable outcomes and increasing the probability of achieving organizational objectives.
Key Aspects of Proactive Actions and Controls:
* Prevention Focus:
* Proactive controls mitigate risks by addressing vulnerabilities and root causes.
* Example: Regular security audits to prevent data breaches.
* Encouraging Positive Outcomes:
* Proactive controls also identify opportunities and create conditions that increase the likelihood of achieving desirable results.
* Example: Implementing reward systems to encourage employee innovation.
* Early Identification:
* Proactive actions help organizations identify risks and opportunities early, providing time to act effectively.
Why Option A is Correct:
Proactive actions and controls aredesigned to prevent negative eventsandpromote positive ones, making them the most effective way to achieve this goal.
Why the Other Options Are Incorrect:
* B. Employee training and follow-up: While training is an important part of proactive measures, it is not sufficient on its own to encourage positive events or prevent negative ones.
* C. Using financial actions and controls: Financial controls focus on budgets and resources but do not inherently address broader risks and opportunities.
* D. Relying on responsive actions and controls: Responsive controls address events after they occur, rather than preventing or encouraging outcomes proactively.
References and Resources:
* ISO 31000:2018- Highlights the role of proactive risk treatment and opportunity management.
* COSO ERM Framework- Discusses preventive and proactive actions for achieving objectives.
* NIST Cybersecurity Framework (CSF)- Recommends proactive controls for addressing risks.

NEW QUESTION # 252
Which is a potential consequence of information compression in layered communication?

A. Discovery of the need to remove layers so that the communications are more direct and distortion is avoided
B. Incorrect information content and information flow to superior units
C. No consequence of concern if the correct, undistorted information is always available in the information management systems
D. Uninformed decision-making by mid-level management

Answer: B

NEW QUESTION # 253
......

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