GRC Certification GRCP Updated Exam

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.

Timely disclosures about the resolution of issues are necessary tocomply with legal requirementsandreassure stakeholdersthat the organization is effectively managing risks and issues.

Purpose of Timely Disclosures:

Compliance: Meet regulatory requirements for transparency and accountability.

Stakeholder Confidence: Demonstrates the organization’s commitment to addressing issues responsibly.

Benefits:

Builds trust with stakeholders, including employees, investors, and regulators.

Reduces reputational risks associated with delayed or incomplete disclosures.

Why Other Options Are Incorrect:

A: Escalation is an internal process, not related to stakeholder disclosures.

B: While anonymity is important, it is not the primary reason for disclosure.

C: Disclosures do not accelerate favorable events; they address issue resolution.

References:

ISO 37002 (Whistleblowing Management Systems): Discusses the importance of transparency in issue resolution.

OCEG GRC Capability Model: Recommends timely disclosures for stakeholder confidence.

Leading indicatorsandlagging indicatorsare performance measurement tools used to assess organizational progress and outcomes.

Leading Indicators:

Provide information aboutfuture events or conditions.

Help predict trends and allow proactive adjustments.

Example: Employee training completion rates predicting future performance improvements.

Lagging Indicators:

Reflectpast events or conditions.

Measure results and outcomes after processes are completed.

Example: Customer satisfaction scores based on previous interactions.

Why Other Options Are Incorrect:

A: Not related to leadership input or exit interviews.

B: Leading and lagging indicators can encompass both financial and non-financial metrics.

C: Both types of indicators may include quantitative and qualitative measures.

References:

Balanced Scorecard Framework: Highlights the use of leading and lagging indicators in performance measurement.

OCEG GRC Capability Model: Discusses indicators for tracking progress.

Thefour dimensionsused to assess Total Performance in theGRC Capability Modelare:

Effectiveness:

Measures the extent to which objectives are achieved.

Assesses whether the right goals are pursued with the desired outcomes.

Efficiency:

Focuses on minimizing resource consumption while maximizing results.

Ensures processes are streamlined and cost-effective.

Responsiveness:

Evaluates the organization’s ability to adapt quickly to changes in the internal and external environment.

Reflects agility in addressing risks, opportunities, or stakeholder demands.

Resilience:

Assesses the capability to recover from disruptions or challenges.

Ensures long-term sustainability and operational continuity.

References:

OCEG GRC Capability Model: Defines performance dimensions critical to GRC implementation.

ISO 31000: Aligns with these dimensions for risk management effectiveness and resilience.