Question 1

GRC is...

A) the Gibson Research Committee.

B) a shorthand reference to the capabilities that integrate the governance, management and assurance of performance, risk, and compliance activities.

C) a set of tools utilized by attorneys, corporate legal departments, general counsel and law firms to govern themselves and their corporations.

D) All of the above describe GRC.

Question 2

Compared to ERM, GRC ...

A) focuses on individual ownership of risk.

B) is implemented widely - at all levels - throughout an organization.

C) is especially compliance-focused.

D) focuses on quantifying risks.

Question 3

Which of the following best describes the objectives of a legal risk management framework?

A) it should be as complex as possible.

B) it should be simple so that anyone can understand it.

C) it should be simple, scalable, adaptable, and practical.

D) it should be rigid so that no changes are ever needed.

Question 4

When identifying legal risks, one should consider...

A) hazards

B) single-occurence events

C) emerging situations

D) All of the above should be considered.

Question 5

Precise measurement of likelihood and consequences of legal risks is rarely, if ever, possible or even desirable.

A) True

B) False

Question 6

Which of the following is NOT a principle of ethics for business executives?

A) Law Abiding

B) Accountability

C) Profit Maximization

D) Commitment to Excellence

Question 7

The main difference between internal compliance and external compliance is

A) enforcement is accomplished by different parties.

B) internal compliance focuses on state regulations while external compliance focuses on federal laws.

C) there are penalties for non-compliance with external requirements but there are no penalties for non-compliance with internal requirements.

D) external compliance refers to ethical behaviors while internal compliance considers only a company policies.

Question 8

According to Boeing Corporation's bylaws, the ethical operations of executives are addressed in which company document?

A) Notice of Proxy Access

B) Certificate of Incorporation

C) Corporate Governance Principles

D) Notice of Stockholders Meeting

Question 9

Transparency, as an indicator of good governance, means ...

A) people are open to information regarding decision-making process and the implementation of the same.

B) that information on matters of public concern are made available to the citizens or those who will be directly affected.

C) that transactions involving public interests must be fully disclosed and made accessible to the people.

D) All of the above are true regarding transparency.

Question 10

When two ethical principles come into conflict, then the principle that takes precedence is the one which best serves the public interest in the particular circumstance, especially the public interest in the proper administration of justice.

A) True

B) False