QUESTION: 25

What is the duality of compliance, and how does it relate to risk?

The duality of compliance refers to the distinction between domestic and international regulations that an organization must follow.
The duality of compliance refers to the trade-off between investing in compliance measures and allocating resources to other business areas.
The duality of compliance involves addressing both compliance with obligations and compliance- related risks. Compliance involves meeting mandatory and voluntary obligations, while compliance- related risks involve addressing the risk of negative outcomes associated with non-compliance.
The duality of compliance refers to the balance between financial gains and ethical considerations in business decisions.

Answer(s): C

Explanation:

The duality of compliance recognizes two key aspects:

Compliance with Obligations:

Organizations must meet mandatory (legal/regulatory) and voluntary (standards/policies) obligations.

Examples: Adhering to GDPR, HIPAA, or ISO standards.

Compliance-Related Risks:

Risks include fines, reputational damage, or operational disruptions resulting from non-compliance.

Effective compliance programs proactively mitigate these risks.

Why Other Options Are Incorrect:

A: Compliance encompasses more than geographic distinctions in regulations.

B: Resource allocation is a management issue, not the essence of compliance duality.

D: Ethical considerations are part of broader governance, not specific to compliance duality.

Reference:

ISO 37301 (Compliance Management Systems): Discusses compliance obligations and related risks.

COSO ERM Framework: Connects compliance activities to risk management.

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QUESTION: 26

What are norms?

Norms are customs, rules, or expectations that a group socially reinforces.
Norms are the typical ways that the business operates.
Norms are the regular employees of an organization as opposed to contractors brought in for unusual (not normal) projects.
Norms are the normal or typical financial targets set by the organization.

Answer(s): A

Explanation:

Norms are socially reinforced expectations, customs, or unwritten rules that influence behavior within a group or organization.

Definition:

Norms dictate acceptable behavior and interactions within a group.

Importance in Organizations:

Norms shape the organizational culture and influence decision-making, collaboration, and communication.

Examples of Norms:

Greeting colleagues in the morning.

Responding promptly to emails within a set timeframe.

Reference:

Corporate Culture Studies: Discuss how norms develop and their impact on group behavior.

COSO Framework: Links norms to cultural elements in governance and risk.

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QUESTION: 27

What is compliance, and how is it measured in an organization?

Compliance is a measure of the degree to which obligations are proven to be addressed, and it is measured by assessing requirements, actions & controls to address requirements, and evidence of effectiveness.
Compliance is the ability to avoid legal disputes, and it is measured by the number of lawsuits and enforcement actions filed against the organization.
Compliance is the financial success of the organization, and it is measured by revenue and profit margins.
Compliance is the level of stakeholder satisfaction measured through stakeholder surveys and feedback.

Answer(s): A

Explanation:

Compliance refers to the organization's adherence to mandatory and voluntary obligations, measured by evaluating its ability to meet these requirements effectively.

Definition:

Compliance involves implementing and monitoring actions and controls to fulfill legal, regulatory,

and ethical obligations.

Measurement:

Requirements: Assessing the obligations the organization must meet.

Actions and Controls: Evaluating the mechanisms in place to achieve compliance.

Effectiveness: Verifying outcomes through audits, reviews, and monitoring.

Why Other Options Are Incorrect:

B: Avoiding disputes is a byproduct, not the definition of compliance.

C: Financial success is unrelated to compliance as a specific discipline.

D: Stakeholder satisfaction is broader than compliance metrics.

Reference:

ISO 37301 (Compliance Management Systems): Explains how to implement, measure, and monitor compliance.

COSO ERM Framework: Discusses compliance as part of risk and governance activities.

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QUESTION: 28

In the IACM, what is the role of Compound/Accelerate Actions & Controls?

To identify and address any potential conflicts of interest that may compound or accelerate enforcement actions against the company.
To enhance the brand image and reputation of the organization.
To accelerate and compound the impact of favorable events to increase benefits and promote the future occurrence.
To accelerate and compound the benefits of reducing costs.

Answer(s): C

Explanation:

Compound/Accelerate Actions & Controls in the Integrated Actions and Controls Model (IACM) focus on amplifying the positive impact of favorable events and fostering conditions for their recurrence.

Objective:

Enhance the benefits derived from favorable events and outcomes.

Increase the likelihood and magnitude of future occurrences of such events.

Examples:

Leveraging positive market feedback to expand brand loyalty.

Scaling a successful project for broader application.

Why Other Options Are Incorrect:

A: Addresses conflicts, not the role of compound/accelerate controls.

B and D: These are outcomes, not primary roles of this category.

Reference:

OCEG IACM Framework: Discusses compounding benefits and promoting opportunities.

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Free OCEG GRCP Exam Questions (page: 8)

QUESTION: 25

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QUESTION: 26

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QUESTION: 27

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QUESTION: 28

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