Governance, Risk and Compliance Quiz

What does GRC stand for?

• Governance, Regulation and Compliance

• Government, Risk and Control

• Governance, Risk and Compliance

• General Risk Control

Which of the following is a key component of compliance?

• Creating marketing strategies

• Developing internal controls

• Risk appetite calculation

• Conducting external audits only

What is the primary role of governance in GRC?

• Managing external audits

• Promoting marketing efficiency

• Managing risks to the execution of company strategy

• Monitoring IT networks

Which of these is NOT a benefit of an effective GRC system?

• Enhance organizational culture

• Eliminate all risks completely

• Increase stakeholder confidence

• Improve responsiveness and efficiency

What caused the collapse of Barings Bank in 1995?

• A cyberattack

• Poor lending decisions

• Unauthorized derivatives trading and lack of controls

• A market crash

Which regulatory objective focuses on giving all market participants equal opportunity?

• Consumer protection

• Reducing systemic risk

• Fair, efficient and transparent markets

• Enhancing consumer confidence

What are the four typical ways to deal with risk (4Ts)?

• Take, Transmit, Treat, Terminate

• Transfer, Terminate, Tolerate, Treat

• Trap, Terminate, Target, Track

• Treat, Track, Time, Tolerate

What does the ‘Comply or Explain’ principle imply?

• Ignore governance rules if too complex

• Full compliance without any exceptions

• Either comply with rules or explain reasons for non-compliance

• Compliance officers must justify employee mistakes

What does the Risk Intelligent Maturity Model measure?

• Profitability of compliance units

• Maturity of an enterprise’s risk management practices

• Compliance with data privacy rules

• Number of internal audits

What contributed to the Enron collapse in 2001?

• Weak marketing strategy

• Lack of innovation

• False accounting and poor corporate governance

• High customer churn