QUESTION: 21

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

Risk
Harm
Obstacle
Threat

Answer(s): A

Explanation:

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.

Reference:

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.

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QUESTION: 22

What is the term used to describe the level of risk in the absence of actions and controls?

Uncontrolled Risk
Inherent Risk
Vulnerability
Residual Risk

Answer(s): B

Explanation:

Inherent Risk refers to the level of risk present before any mitigation actions or controls are applied.

Definition:

It represents the natural level of risk associated with an activity or environment without considering risk management measures.

Contrasted with Residual Risk:

Residual Risk is the risk remaining after mitigation efforts are applied.

Why Other Options Are Incorrect:

A (Uncontrolled Risk): Not a standard risk management term.

C (Vulnerability): Refers to weaknesses that increase susceptibility to risk, not the risk level itself.

D (Residual Risk): Comes after controls are applied, opposite to inherent risk.

Reference:

COSO ERM Framework: Discusses inherent risk as a baseline for evaluating control effectiveness.

ISO 31000 (Risk Management): Explains inherent risk in the context of risk assessments.

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QUESTION: 23

What is the design option that involves ceasing all activity or terminating sources that give rise to the opportunity, obstacle, or obligation?

Accept
Share
Avoid
Control

Answer(s): C

Explanation:

Avoid is a risk management strategy that involves stopping activities or removing sources of risk entirely.

Definition:

Avoidance eliminates the possibility of a risk occurring by ceasing the activity or terminating the risk source.

Examples:

Not entering a risky market.

Discontinuing a product line with regulatory risks.

Why Other Options Are Incorrect:

A (Accept): Involves acknowledging the risk and taking no additional action.

B (Share): Involves transferring part of the risk to another party (e.g., insurance).

D (Control): Involves reducing the likelihood or impact of a risk without eliminating it.

Reference:

ISO 31000 (Risk Management): Highlights avoidance as one of the core risk treatment options.

COSO ERM Framework: Explains risk avoidance as a strategic decision to eliminate exposure.

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QUESTION: 24

What are beliefs, and how do they influence behavior within an organization?

Beliefs are ideas and assumptions held by individuals or groups, often shaped by experiences and perceptions, that influence behavior by informing the values and principles that guide actions and decisions.
Beliefs are the organization's commitments to mandatory and voluntary obligations, and they influence behavior by determining the extent to which individuals fulfill obligations and honor promises.
Beliefs are the organization's understanding of its mission, vision, and values, and they influence behavior by aligning actions with the organization's higher purpose and long-term goals.
Beliefs are the organization's perceptions of risk and uncertainty, and they influence behavior by guiding actions and controls to address compliance-related risks.

Answer(s): A

Explanation:

Beliefs are fundamental ideas or assumptions individuals or groups hold within an organization. These beliefs shape the culture and influence behavior in significant ways.

Definition:

Beliefs stem from experiences, perceptions, and cultural influences, forming the foundation of values and principles.

Influence on Behavior:

Beliefs inform decision-making, align employee actions with organizational values, and guide ethical practices.

Organizational Impact:

Shared beliefs create a cohesive culture, align goals, and foster trust among stakeholders.

Reference:

OCEG Capability Model: Explains the role of beliefs in shaping behavior and culture.

COSO Framework: Highlights the impact of core values on organizational behavior.

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Free OCEG GRCP Exam Questions (page: 7)

QUESTION: 21

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QUESTION: 22

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QUESTION: 23

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QUESTION: 24

Explanation:

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