GRCP Dumps With Exact Questions and Answers

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.

The concepts ofinherent effectandresidual effectare critical in understanding the impact of risk controls and mitigation strategies in risk management.

Inherent Effect (Inherent Risk):

Refers to the level of uncertainty or riskbeforeany actions, controls, or mitigation measures are implemented.

It represents theraw riskthat exists naturally in the absence of preventive or corrective measures.

Residual Effect (Residual Risk):

Refers to the level of uncertainty or riskafteractions, controls, and mitigation measures have been implemented.

It represents theremaining riskthat an organization must accept or tolerate despite its efforts to reduce it.

Why Option B is Correct:

Option B accurately reflects the distinction:

Inherent effect= effect of uncertaintywithout controls.

Residual effect= effect of uncertaintywith controls.

Options A, C, and D confuse the relationship between risk, reward, controls, and uncertainty and are therefore incorrect.

Relevant Frameworks and Guidelines:

ISO 31000 (Risk Management):Discusses inherent and residual risk as key components of risk evaluation and treatment.

COSO ERM Framework:Highlights the importance of assessing inherent and residual risks when evaluating the effectiveness of risk controls.

In summary, theinherent effectof uncertainty is observed before controls are applied, while theresidual effectis the remaining uncertainty after implementing controls. This distinction is crucial for evaluating the effectiveness of risk mitigation strategies.

The distinction betweenprescriptive normsandproscriptive normslies in the types of behaviors they influence:

Prescriptive Norms:

Encourage behaviors consideredpositiveor desirable by the group.

Example: Encouraging collaboration and teamwork.

Proscriptive Norms:

Discourage behaviors considerednegativeor undesirable by the group.

Example: Prohibiting dishonesty or discrimination.

Why Other Options Are Incorrect:

A: Both types of norms can be mandatory depending on the context.

B: Norms are not specifically tied to financial or ethical behavior alone.

C: Norms arise from social or organizational expectations, not exclusively regulations or standards.

References:

OCEG GRC Capability Model: Explains norms in the context of organizational culture.

Behavioral Science Frameworks: Discuss the role of prescriptive and proscriptive norms in shaping behavior.