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16 views

GRC Questions

Uploaded by

SakibAhmed
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Top 55 Questions and Answers on

Governance, Risk, and Compliance (GRC)

Author : G. M. Faruk Ahmed, CISSP, CISA Date : 2024-11-24

Governance Questions

1. What is governance in GRC? Governance refers to the frameworks, rules,


policies, and procedures that ensure an organization achieves its objectives and
maintains accountability.

2. Why is governance important in an organization? Governance ensures


transparency, accountability, and ethical practices, which build stakeholder trust
and compliance with legal requirements.

3. What is a governance framework? It’s a structure defining how decisions are


made, how objectives are set, and how performance is monitored in an
organization.

4. What is corporate governance? Corporate governance involves systems and


processes by which companies are directed and controlled, focusing on the
interests of shareholders and stakeholders.

5. What are governance principles? Accountability, transparency, fairness, and


responsibility.

6. How does governance differ from management? Governance sets the direction
and policies; management executes them operationally.

7. What is IT governance? A subset of governance ensuring IT systems align with


business goals while mitigating IT-related risks.

8. How do governance and compliance interrelate? Governance establishes policies


and controls, while compliance ensures adherence to those policies and
regulations.

9. What are governance metrics? Metrics that assess board effectiveness,


stakeholder engagement, and adherence to governance policies.

10. What is ESG governance? Governance related to environmental, social, and


governance (ESG) criteria to evaluate sustainability and ethical impacts.

Risk Management Questions

1. What is risk management in GRC? The process of identifying, assessing, and


controlling risks to achieve organizational objectives.

2. What are the key steps in risk management? Risk identification, assessment,
mitigation, monitoring, and communication.

3. What are inherent and residual risks? Inherent risk is the level of risk before
controls; residual risk is what remains after controls.
4. What is a risk appetite? The level of risk an organization is willing to accept in
pursuit of its goals.

5. What is a risk register? A document listing identified risks, their assessments,


and mitigation strategies.

6. What is a risk matrix? A tool used to prioritize risks based on their likelihood and
impact.

7. What are strategic risks? Risks associated with achieving long-term


organizational objectives.

8. How is operational risk managed? By implementing robust processes, regular


audits, and staff training.

9. What is third-party risk management? Assessing and mitigating risks posed by


suppliers, vendors, and contractors.

10. What is enterprise risk management (ERM)? A holistic approach to identifying


and managing risks across the organization.

Compliance Questions

1. What is compliance in GRC? Adherence to laws, regulations, industry standards,


and internal policies.

2. What are common compliance regulations? GDPR, HIPAA, SOX, PCI-DSS, and
FCPA, among others.

3. What is the role of a compliance officer? To oversee regulatory adherence, policy


implementation, and reporting.

4. What is the difference between compliance and ethics? Compliance focuses on


following rules; ethics is about doing what is morally right.

5. What are compliance audits? Periodic evaluations to ensure adherence to


regulatory and internal policies.

6. What is regulatory compliance? Adherence to external laws and regulations


relevant to the industry.

7. What is the purpose of compliance training? To educate employees about


regulations and company policies.

8. How does automation help compliance? By streamlining processes like


documentation, reporting, and monitoring.

9. What is a compliance risk assessment? Evaluating the risks of non-compliance


with applicable laws and policies.

10. What is continuous compliance monitoring? Ongoing tracking of compliance


activities to ensure adherence in real-time.

GRC Framework Questions

1. What is a GRC framework? An integrated approach to managing governance,


risk, and compliance activities.

2. What are the key components of a GRC framework? Governance policies, risk
management processes, and compliance controls.
3. What is COSO? A widely used framework for risk management, internal control,
and governance.

4. What is ISO 31000? An international standard for risk management.

5. What is COBIT? A framework for IT governance and management.

6. What is NIST? A framework providing guidelines for cybersecurity risk


management.

7. How does a GRC framework benefit organizations? It integrates processes,


reduces redundancies, and enhances decision-making.

8. What are GRC tools? Software platforms for automating and integrating GRC
processes.

9. What is the role of leadership in GRC? Setting the tone, ensuring accountability,
and allocating resources.

10. What is the difference between GRC and ERM? GRC integrates governance, risk,
and compliance; ERM focuses solely on risk.

Advanced Questions

1. What is integrated GRC? Combining governance, risk, and compliance processes


for efficiency.

2. What is the significance of data in GRC? Data informs risk assessments,


compliance monitoring, and decision-making.

3. What are the challenges in implementing GRC? Lack of resources, siloed


processes, and rapidly changing regulations.

4. What is the role of culture in GRC? A strong ethical culture supports compliance
and risk management.

5. What is predictive risk management? Using data analytics to anticipate and


mitigate risks proactively.

6. How does AI support GRC? Through automating tasks like risk analysis,
compliance monitoring, and reporting.

7. What is a GRC dashboard? A visual tool providing insights into governance, risk,
and compliance metrics.

8. What is SOX compliance? Adherence to the Sarbanes-Oxley Act, focusing on


financial reporting and internal controls.

9. What is GDPR compliance? Following the General Data Protection Regulation,


protecting EU citizens' data.

10. What is HIPAA compliance? Adhering to regulations on protecting health


information in the US.

Examples and Scenarios

1. What are examples of governance failures? Corporate scandals like Enron and
Lehman Brothers.

2. What are examples of non-compliance penalties? Fines for GDPR violations or


SOX non-compliance.
3. What is a compliance breach? Failing to follow regulatory or internal policies.

4. What is a risk mitigation strategy? Insurance, training, or implementing safety


measures.

5. How to handle a third-party compliance breach? Conduct due diligence, enforce


contracts, and monitor activities.

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