GRCP Practice Questions

A.  

A hazard is a measure of the negative impact on the organization, while an obstacle is a state of conditions that create a hazard.

B.  

A hazard affects the likelihood of an event, while an obstacle is a hazard with significant impact on objectives.

C.  

A hazard is a cause that has the potential to eventually result in harm, while an obstacle is an event that may have a negative effect on objectives.

D.  

A hazard is a type of obstacle, while an obstacle is an overarching category of threat.

A.  

To eliminate the need for hiring consultants or law firms to monitor external factors

B.  

To ensure that individuals with authority and resources are responsible for successfully analyzing, influencing, and sensing external factors that may impact the organization

C.  

To reduce the workload of the organization's top management and having staff people track external factors relevant to their own roles

D.  

To know who will be using technology to track external events so proper access can be assigned

A.  

To increase the likelihood of favorable events

B.  

To establish clear lines of communication within the organization

C.  

To set performance metrics for all actions and controls

D.  

To establish and enable controls that mitigate potential security threats

A.  

Likelihood measures the chance of an event occurring, and impact measures the economic and non-economic consequences

B.  

Likelihood measures the number of obstacles, and impact measures the number of opportunities

C.  

Likelihood measures the financial gain, and impact measures the financial loss

D.  

Likelihood and impact are irrelevant in measuring the effect of uncertainty

A.  

Compliance and Ethics

B.  

Interest and Power

C.  

Push and Pull

D.  

Internal and External

A.  

Adhering to established organizational values helps create a shared sense of purpose and direction, aligning actions and decisions with the organization's mission and goals

B.  

Organizational values contribute to acting with integrity by increasing the organization’s market share and profitability, which will satisfy shareholders to whom promises were made

C.  

Organizational values contribute to acting with integrity by allowing the organization to bypass certain legal and regulatory requirements

D.  

Organizational values contribute to acting with integrity by reducing the likelihood of enforcement actions because the organization is self-regulating

A.  

To ensure that all communication is delivered in written form only.

B.  

To ensure that the channels are available before they are needed.

C.  

To formalize the process so that employees know that anything they communicate will be kept in records.

D.  

To limit communication to a single channel for simplicity and cost savings.

A.  

KRIs are subjective measures that are not based on any specific risk assessments or data so they only provide a high-level assessment of threats

B.  

KRIs are indicators that help govern, manage, and provide assurance about risk related to an objective

C.  

KRIs are used to evaluate the performance of the risk management and compliance departments

D.  

KRIs are only relevant for governmental entities and have no role in commercial enterprises

A.  

It ensures that superior-level objectives cascade to subordinate units and that subordinate units contribute to the most important objectives and priorities of the organization.

B.  

It enables the governing authority to only focus on the highest-level objectives that are tied to financial outcomes.

C.  

It frees the organization to focus solely on short-term financial performance.

D.  

It eliminates the need for excessive communication and collaboration between different departments within the organization.

A.  

Level 1 – Initial

B.  

Level 2 – Managed

C.  

Level 3 – Consistent

D.  

Level 4 – Measured