GRC GRC Ethics, Culture, and Stakeholder Accountability

Question 1

In a GRC context, 'tone at the top' refers to:

Accepted Answer

Senior leadership's visible commitment to ethical behavior and compliance

Answer

The volume level of executive presentations

Answer

The frequency of board-level GRC reporting

Answer

The topmost tier of a risk classification matrix

Question 2

Which of the following best defines a 'code of conduct' in a corporate compliance program?

Accepted Answer

A formal document outlining the ethical principles and behavioral expectations for all employees

Answer

A set of programming standards for IT developers

Answer

A regulatory filing submitted to the SEC annually

Answer

A contract between the company and its external auditors

Question 3

A robust whistleblower program in a GRC framework is designed primarily to:

Accepted Answer

Encourage anonymous reporting of misconduct without fear of retaliation

Answer

Track employee overtime and attendance violations

Answer

Manage relationships with external media outlets

Answer

Automate compliance training completion records

Question 4

The Sarbanes-Oxley Act (SOX) Section 301 requires publicly traded companies to establish:

Accepted Answer

An independent audit committee with authority to oversee financial reporting and whistleblower complaints

Answer

A chief ethics officer reporting directly to the CEO

Answer

Annual employee ethics surveys submitted to the SEC

Answer

A mandatory corporate social responsibility report

Question 5

Which of the following represents an example of a conflict of interest in a GRC setting?

Accepted Answer

A procurement officer awarding a contract to a vendor in which they hold a financial interest

Answer

An employee using company equipment for an authorized work task

Answer

A manager approving a colleague's expense report after reviewing receipts

Answer

An auditor reviewing a business unit they have never previously worked in

Question 6

The primary purpose of ethics training in a compliance program is to:

Accepted Answer

Help employees recognize ethical dilemmas and make decisions aligned with organizational values and legal requirements

Answer

Satisfy annual HR audit requirements with no practical effect

Answer

Teach employees how to avoid detection of minor policy violations

Answer

Reduce the need for internal audit activity