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OCEG GRC Professional Certification Exam Sample Questions (Q139-Q144):
NEW QUESTION # 139
What practices are involved in analyzing and understanding an organization's ethical culture?
- A. Implementing a performance appraisal system to evaluate employee performance
- B. Developing a strategic plan to achieve the organization's long-term goals for improving ethical culture
- C. Conducting a survey of employees every few years on their views about the organization's commitment to ethical conduct
- D. Analyzing the climate and mindsets about how the workforce generally demonstrates integrity
Answer: D
Explanation:
Ethical culturerefers to the shared values, beliefs, and behaviors that promote integrity and guide ethical decision-making within an organization. Analyzing an organization's ethical culture requires examining the climateandmindsetsregarding how employees, leadership, and other stakeholders perceive and demonstrate ethical behavior.
Key Practices for Analyzing Ethical Culture:
* Analyzing the Climate:
* Theethical climateof an organization reflects the norms, policies, and procedures that promote or inhibit ethical conduct.
* Assessing the climate involves observing how employees and leaders make decisions, respond to ethical dilemmas, and handle accountability.
* Evaluating Mindsets:
* Mindsetsrefer to employees' and leaders' attitudes, values, and perceptions about integrity and ethical behavior.
* This involves examining whether employees feel encouraged to act ethically and whether they trust the organization's commitment to integrity.
* Tools for Analysis:
* Surveys and focus groups provide insights into how employees perceive the ethical culture.
* Case studies or ethics incident reviews help evaluate the organization's response to ethical challenges.
* Monitoring metrics such as whistleblower reports and compliance violations offers objective data.
Why Option D is Correct:
Analyzingthe climate and mindsets about how the workforce demonstrates integrityis central to understanding the organization's ethical culture. This practice goes beyond superficial surveys or appraisals to delve into how integrity is integrated into daily behaviors and decision-making.
Why the Other Options Are Incorrect:
* A: Developing a strategic plan is a forward-looking activity aimed at improving ethical culture, not analyzing or understanding it.
* B: Conducting periodic surveys provides valuable data but does not fully encompass the analysis of climate and mindsets, which requires ongoing observation and evaluation.
* C: Performance appraisal systems measure individual performance but do not directly assess or analyze organizational ethical culture.
References and Resources:
* ISO 37001:2016- Anti-Bribery Management Systems, which emphasizes promoting ethicalculture and integrity.
* COSO Internal Control - Integrated Framework- Highlights the importance of ethical culture as part of the control environment.
* OECD Principles of Corporate Governance- Discusses the role of ethical culture in governance.
* Ethical Climate Theory- A framework for understanding how ethical culture impacts decision-making and behavior in organizations.
NEW QUESTION # 140
How does assurance help management and stakeholders gain confidence?
- A. It verifies that what stakeholders believe is happening, is actually happening
- B. It ensures financial statements are accurate and free from misstatements
- C. It helps identify and mitigate potential risks and threats to the organization
- D. It ensures policies and procedures meet regulatory standards
Answer: A
NEW QUESTION # 141
How can the Code of Conduct serve as a guidepost for organizations of all sizes and in all industries?
- A. It is a starting point for policies and procedures in large organizations or those in highly regulated industries, while in small organizations that are less regulated it is the only guidance needed.
- B. It is a legally mandated document that must be established and followed by all organizations.
- C. It is only applicable to large organizations in specific industries.
- D. It sets out the principles, values, standards, or rules of behavior that guide the organization's decisions, procedures, and systems, serving as an effective guidepost.
Answer: D
Explanation:
A Code of Conduct is a foundational document that articulates the principles, values, standards, and rules that guide an organization's behavior and decision-making processes.
Role of the Code of Conduct:
Serves as a reference point for all employees and stakeholders.
Promotes a consistent ethical culture and compliance with organizational values.
Applicability:
Effective across all industries and organization sizes as a baseline for ethical behavior and operational standards.
Why Other Options Are Incorrect:
A: The Code of Conduct is relevant for all organizations, not just large ones.
B: While important, it is not legally mandated for all organizations.
D: It is applicable to organizations of all sizes and industries, not limited to specific cases.
Reference:
OCEG GRC Capability Model: Emphasizes the Code of Conduct as a guide for decisions and behavior.
ISO 37001 (Anti-Bribery Management Systems): Discusses Codes of Conduct in fostering ethical standards.
NEW QUESTION # 142
Why is it essential to ensure that every issue or incident is addressed?
- A. To provide incentives to employees for favorable conduct.
- B. To maintain employee and other stakeholder confidence in the system's effectiveness.
- C. To compound and accelerate the impact of favorable events.
- D. To escalate incidents for investigation and identify them as in-house or external.
Answer: B
NEW QUESTION # 143
What is meant by the term "residual risk"?
- A. The risk that remains after eliminating all threats
- B. The risk that is transferred to a third party
- C. The risk that exists in all business activities
- D. The level of risk in the presence of actions & controls
Answer: D
NEW QUESTION # 144
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