Question 1

What is the role of indicators in measuring progress toward objectives?

Options :

A : Indicators are used to determine if the objectives must be changed in response to changes in the external or internal context.

B : Indicators measure quantitative or qualitative progress toward an objective.

C : Indicators are used to evaluate the appropriateness of the organization’s selection of objectives.

D : Indicators are used to calculate the return on investment for various projects and initiatives.

Answer: B

Question 2

What is the duality of compliance, and how does it relate to risk?

Options :

A : The duality of compliance refers to the distinction between domestic and international regulations that an organization must follow.

B : The duality of compliance refers to the trade-off between investing in compliance measures and allocating resources to other business areas.

C : The duality of compliance involves addressing both compliance with obligations and compliancerelated risks. Compliance involves meeting mandatory and voluntary obligations, while compliancerelated risks involve addressing the risk of negative outcomes associated with non-compliance.

D : The duality of compliance refers to the balance between financial gains and ethical considerations in business decisions.

Answer: C

Question 3

In the context of GRC, which is the best description of the role of governance in an organization?

Options :

A : Developing marketing strategies and driving sales growth to meet objectives established by the governing body

B : Indirectly guiding, controlling, and evaluating an entity by constraining and conscribing resources

C : Conducting audits and providing assurance on the effectiveness of controls

D : Implementing operational processes and overseeing day-to-day activities

Answer: B

Question 4

In the context of GRC, what is the importance of aligning objectives throughout the organization?

Options :

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.

Answer: A

Question 5

What are some examples of action and control categories as described in the IACM?

Options :

A : Policy, process change, punishment, incentives, and employee education

B : Policy, people, process, physical, informational, technological, and financial actions and controls

C : Outsourcing, downsizing, and automation as the primary means of control

D : Random selection, trial and error, and reliance on intuition and experience

Answer: B

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