Governance Framework CRISC Practice Questions (Page 1)

Questions 1–5

1. 1expert · hard

   A company's sales team has a culture that prioritizes closing deals over following internal controls. The board wants to increase revenue but also wants to strengthen the control environment. The CRO proposes a new incentive plan that rewards compliance. The sales director objects, saying it will slow down sales. What is the BEST way to address this conflict?

   • AAbandon the incentive plan to maintain sales momentum
   • BEscalate the conflict to the board for a decision
   • CImplement the incentive plan and communicate that compliance is a core value
   • DCompromise by making the incentive plan voluntary
   Reveal Solution Discussion Select an answer first
2. 2foundation · easy

   How do strategy, goals, and objectives align to support enterprise risk management?

   • AStrategy, goals, and objectives are independent and do not need to be aligned for effective risk management.
   • BGoals are the detailed action plans, while objectives are the high-level vision statements.
   • CStrategy is only about financial targets, while goals and objectives address operational risks.
   • DStrategy defines the overall direction, goals are broad outcomes, and objectives are specific measurable steps that, when achieved, help manage risk and achieve the strategy.
   Reveal Solution Discussion Select an answer first
4. 3application · medium

   A manufacturing company's strategic goal is to reduce operational costs by 15% over two years. The IT department proposes a cloud migration project. How should the IT department demonstrate that this project supports the strategic goal?

   • AShow that the cloud migration will reduce IT infrastructure costs by 20%
   • BState that the project will improve system performance
   • CExplain that cloud migration is a modern industry trend
   • DNote that the project aligns with the IT department's annual plan
   Reveal Solution Discussion Select an answer first
5. 4application · medium

   A retail company's strategic goal is to become the market leader in online sales within three years. The board sets a specific target: 'increase online sales by 20% annually.' What does this target represent?

   • AA risk appetite
   • BA policy
   • CA strategy
   • DAn objective
   Reveal Solution Discussion Select an answer first
6. 5expert · hard

   A company with a hierarchical structure is merging with a startup that has a collaborative, informal culture. The combined organization must integrate risk management practices. What is the MOST EFFECTIVE way to integrate the two cultures?

   • AAdopt the startup's informal culture for all risk decisions
   • BCreate a joint risk committee with representatives from both organizations
   • CImpose the hierarchical structure on the startup
   • DKeep the risk management practices separate
   Reveal Solution Discussion Select an answer first