OCEG GRCP Exam Practice Test Instant Access

Question 1

What are key compliance indicators (KCIs) associated with?

ANumber of non-compliance events investigated

BThe level of employee training and understanding of requirements

CThe impact of environmental and social initiatives

DThe degree to which obligations and requirements are addressed

Answer : D

Key Compliance Indicators (KCIs) are metrics that evaluate how well an organization meets its legal, 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.

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.

Question 2

What is the term used to describe the measure of the negative effect of uncertainty on objectives?

ARisk

BHarm

CObstacle

DThreat

Answer : A

Risk is defined as the effect of uncertainty on objectives, encompassing both positive opportunities and negative outcomes.

Definition:

In GRC and risk management, risk is the combination of the likelihood of an event and its consequences.

Measurement:

Risk quantifies the potential negative impact on objectives due to uncertainty.

Why Other Options Are Incorrect:

B (Harm): Refers to physical or psychological damage, not a risk metric.

C (Obstacle): Refers to a challenge or barrier, not the overall concept of risk.

D (Threat): Represents a potential source of risk, not the measure itself.

ISO 31000 (Risk Management): Provides a formal definition of risk and its relationship to uncertainty.

NIST RMF: Emphasizes risk management as a function of organizational objectives.

Question 3

What are the key measurement criteria for the REVIEW component?

AQuality, Safety, Compliance, and Sustainability.

BEffective, Efficient, Agile, and Resilient.

CLeadership, Collaboration, Innovation, and Diversity.

DRevenue, Profit, Market Share, and Growth.

Answer : B

The key measurement criteria for the REVIEW component focus on ensuring the organization's actions and controls are Effective, Efficient, Agile, and Resilient to achieve objectives and adapt to changes.

Key Criteria Defined:

Effective: Actions and controls achieve desired outcomes.

Efficient: Resources are used optimally without waste.

Agile: The organization can adapt to changing conditions or requirements.

Resilient: Systems and processes can recover from disruptions.

Why Other Options Are Incorrect:

A: Quality and safety are specific considerations but do not encompass the broader review criteria.

C: Leadership, collaboration, and diversity are organizational attributes, not review criteria.

D: Financial metrics are important but focus on outcomes rather than performance criteria in the review process.

OCEG GRC Capability Model: Describes criteria for assessing the performance of actions and controls.

COSO ERM Framework: Highlights the importance of agility and resilience in risk management.

Question 4

Which of the following reflects what the learner will be able to do after a learning activity?

ALearning Assessment

BLearning Objective

CLearning Content

DLearning Outcome

Answer : D

A Learning Outcome specifies what the learner will be able to do or demonstrate after completing a learning activity.

Definition of Learning Outcome:

Focuses on measurable skills, knowledge, or behaviors acquired through the activity.

Example: ''Employees will be able to identify and report potential compliance violations.''

Why Other Options Are Incorrect:

A: Learning assessment measures whether outcomes have been achieved but does not define the outcome itself.

B: Learning objectives outline goals but do not indicate what is achieved after the activity.

C: Learning content refers to the materials used during the activity, not the result.

Bloom's Taxonomy: Emphasizes outcomes as measurable achievements.

Corporate Training Models: Highlight outcomes as the focus of training evaluations.

Question 5

What is the importance of mapping objectives to one another within an organization?

AMapping objectives not only at the enterprise level but also across all units shows how they impact one another and how resources may be best allocated

BMapping objectives not only at the enterprise level but also across all units is important for determining the compensation and bonuses of employees based on their contributions to achieving objectives

CMapping objectives not only at the enterprise level but also across all units is important for creating a visual representation of the organization's hierarchy and reporting structure

DMapping objectives not only at the enterprise level but also across all units is important for identifying redundant objectives and eliminating them from the organization's strategic plan

Answer : A

Question 6

What is the difference between prescriptive norms and proscriptive norms?

APrescriptive norms are optional guidelines, while proscriptive norms are mandatory rules.

BPrescriptive norms are related to financial performance, while proscriptive norms are related to ethical behavior.

CPrescriptive norms are established by government regulations, while proscriptive norms are established by industry standards.

DPrescriptive norms encourage behavior the group deems positive, while proscriptive norms discourage behavior the group deems negative.

Answer : D

The distinction between prescriptive norms and proscriptive norms lies in the types of behaviors they influence:

Prescriptive Norms:

Encourage behaviors considered positive or desirable by the group.

Example: Encouraging collaboration and teamwork.

Proscriptive Norms:

Discourage behaviors considered negative or 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.

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.

Question 7

How are Key Performance Indicators (KPIs), Key Risk Indicators (KRIs), and Key Compliance Indicators (KCIs) used?

AKPIs help govern, manage, and provide assurance about performance related to an objective; KRIs help govern, manage, and provide assurance about risk related to an objective; KCIs help govern, manage, and provide assurance about compliance related to an objective

BKPIs are financial metrics, KRIs are operational metrics, and KCIs are customer-related metrics, all of which are used to determine executive bonuses

CKPIs are long-term goals, KRIs are short-term goals, and KCIs are intermediate goals, all of which are used to determine what decision-making criteria is required

DKPIs are used to measure the efficiency of business processes; KRIs are used to assess the risk assessment processes; and KCIs are used to evaluate the impact of changes, regulations and other obligations

Answer : A

Key Performance Indicators (KPIs), Key Risk Indicators (KRIs), and Key Compliance Indicators (KCIs) are critical tools for monitoring and managing organizational objectives, risks, and compliance efforts.

Roles of KPIs, KRIs, and KCIs:

KPIs: Provide insights into performance relative to strategic objectives (e.g., revenue growth, customer satisfaction).

KRIs: Measure the likelihood and impact of risks affecting objectives (e.g., cybersecurity threats, market risks).

KCIs: Track compliance with regulations, standards, and internal policies (e.g., data privacy laws, anti-bribery compliance).

Why Option A is Correct:

Option A accurately describes how KPIs, KRIs, and KCIs are used to govern, manage, and provide assurance about performance, risk, and compliance.

Option B incorrectly limits their use to metrics for executive bonuses.

Option C confuses the terms as goals instead of indicators.

Option D is an oversimplification and misrepresents the roles of KPIs, KRIs, and KCIs.

Relevant Frameworks and Guidelines:

COSO ERM Framework: Recommends using KPIs and KRIs to monitor performance and risk.

ISO 19600 (Compliance Management): Highlights the importance of KCIs for ensuring compliance with obligations.

In summary, KPIs, KRIs, and KCIs are essential for providing assurance and guiding decision-making in performance, risk management, and compliance.

OCEG GRCP GRC Professional Certification Exam Practice Test