Governance Framework CRISC Practice Questions (Page 5)

Questions 21–25

1. 21application · medium

   A company's board has approved a new strategic objective to expand into a new market. The CEO delegates the implementation to the chief marketing officer (CMO). Who is ultimately accountable for the risks associated with this strategic objective?

   • AThe chief executive officer
   • BThe board of directors
   • CThe chief marketing officer
   • DThe chief risk officer
   Reveal Solution Discussion Select an answer first
2. 22foundation · easy

   How does a strong ethical culture influence the control environment?

   • AIt eliminates the need for formal controls.
   • BIt increases the organization's risk appetite.
   • CIt shifts all risk decisions to the board.
   • DIt promotes adherence to policies and reduces the likelihood of intentional control violations.
   Reveal Solution Discussion Select an answer first
4. 23application · medium

   A financial services firm has a strong ethical culture that emphasizes compliance and transparency. The board is considering a new strategic initiative that involves a high-risk investment. How should the board evaluate this initiative?

   • AReject the initiative because it is high-risk
   • BAssess whether the initiative aligns with the firm's ethical values and risk appetite
   • CApprove the initiative because it promises high returns
   • DDelegate the decision to the investment committee
   Reveal Solution Discussion Select an answer first
5. 24application · medium

   A company is transitioning from a functional structure to a product-based structure. How will this MOST LIKELY affect the assignment of risk ownership?

   • ARisk ownership will be transferred to the external audit committee
   • BRisk ownership will remain with functional department heads
   • CRisk ownership will shift to product managers who have end-to-end accountability
   • DRisk ownership will be shared equally among all employees
   Reveal Solution Discussion Select an answer first
6. 25foundation · easy

   What role do standards play in guiding risk management and control implementation?

   • AThey replace the need for policies.
   • BThey provide specific, measurable requirements that help implement policies consistently.
   • CThey are only applicable to IT systems, not business processes.
   • DThey are optional guidelines with no mandatory force.
   Reveal Solution Discussion Select an answer first