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NEW QUESTION # 226
Which organization and its membership created the concepts of Principled Performance and GRC?
Answer: G
Explanation:
The concepts of Principled Performance and GRC (Governance, Risk, and Compliance) were developed by the OCEG (Open Compliance and Ethics Group) community of GRC professionals.
OCEG Overview:
OCEG is a global, nonprofit think tank and community that pioneered the integration of governance, risk, and compliance practices under the GRC framework.
It focuses on helping organizations achieve Principled Performance, a concept that involves balancing objectives, managing uncertainties, and maintaining integrity.
Principled Performance and GRC Development:
OCEG introduced the GRC Capability Model, which serves as a comprehensive guide for aligning GRC practices with strategic goals.
The model emphasizes reliable achievement of objectives, addressing uncertainty, and ensuring ethical behavior.
Why Other Options are Incorrect:
Organizations like ISACA, ISO, or IIA provide valuable standards or guidance in specific areas (e.g., auditing, information systems, etc.), but they did not create the overarching GRC and Principled Performance concepts.
Reference:
OCEG Capability Model (Red Book): A detailed framework for implementing GRC practices.
OCEG official resources on the history and mission of GRC and Principled Performance.
NEW QUESTION # 227
In the context of assurance activities, what does the term "assurance objectivity" refer to?
Answer: C
Explanation:
Assurance Objectivityrefers to the assurance provider'sability to maintain independence and impartiality in evaluating subject matter.
* Impartiality:
* Assurance providers must remain unbiased and free from conflicts of interest to ensure their conclusions are trustworthy.
* Independence:
* Assurance activities should be conducted independently of the area or individuals being evaluated.
* Conduct of Activities:
* The assurance provider must have the freedom to perform all necessary procedures to evaluate the subject matter comprehensively.
References:
* IIA Standards (Independence and Objectivity): Highlights the importance of maintaining objectivity in internal audit and assurance activities.
* ISO 19011: Reinforces objectivity as a core principle in auditing practices.
NEW QUESTION # 228
What is the term used to describe the measure of the negative effect of uncertainty on objectives?
Answer: C
NEW QUESTION # 229
In the IACM, what are the two types of Proactive Actions & Controls?
Answer: A
NEW QUESTION # 230
What are some examples of legal and regulatory factors that may influence an organization's external context?
Answer: D
Explanation:
Legal and regulatory factors are critical components of an organization'sexternal contextand include the framework of laws, regulations, and judicial decisions that govern its operations. These factors are external because they are created and enforced by entities outside the organization and must be monitored and addressed proactively.
Key Examples of Legal and Regulatory Factors:
* Laws and Rules:
* National and international laws, such asGDPRfor data privacy orSOXfor financial reporting.
* Industry-specific laws, such asHIPAAfor healthcare.
* Regulations:
* Standards set by regulatory authorities likeSEC,FDA, orEU Directivesthat must be adhered to.
* Litigation:
* Ongoing or potential legal actions that may influence operational and reputational risks.
* Judicial or Administrative Opinions:
* Court rulings or administrative guidelines that create precedents and influence compliance requirements.
Why Option C is Correct:
Option C encompasses thebroadest and most accurate examplesof external legal and regulatory factors that influence the organization's context.
Why the Other Options Are Incorrect:
* A: Market research, customer feedback, and competitive analysis relate to business strategy, not legal and regulatory factors.
* B: Coordination of legal activities is an internal operational process, not an external factor.
* D: Enforcement actions and litigation against the company are outcomes of non-compliance, not examples of external regulatory factors.
References and Resources:
* ISO 31000:2018- Risk Management Guidelines (emphasis on legal and regulatory external context).
* COSO ERM Framework- Identifies external legal and regulatory factors as part of the operating environment.
* GDPR and HIPAA Compliance Frameworks- Examples of regulatory external factors.
NEW QUESTION # 231
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