ICA GOVERNANCE RISK &
COMPLIANCE MODULE 1 UNIT 1
GRC---ans---...the-capability-or-integrated-collection-of-capabilities,-that-enables-an-
organisation-to-reliably-achieve-objectives,-address-uncertainty,-and-act-with-integrity;-
including-the-governance,-assurance-and-management-of-performance,-risk,-and-
compliance-
GRC-is-an-umbrella-term-which-covers-a-firms-approach-to-the-three-distinct-disciplines-of-
Governance-Risk-and-Compliance
Governance-in-practice---ans---Governance-in-practice-involves-having-the-necessary-
mechanisms-to-identify-risks,-and-the-ability-to-respond-to-risks-by-working-across-the-
business-to-devise-compliant-solutions
Who-are-main-stakeholders-in-a-firm---ans---customers-
shareholders
-management-and-other-employees-
the-regulators-who-supervise-the-industry-Increasingly,
focus-is-placed-on-other-stakeholders-,-including-wider-society-,-the-local-communities-in-
which-the-firm-operates-,-the-environment-,-and-even-other-firms-in-the-same-market-.
Risk-can-affect-a-firm-in-the-immediate-,-short-,-medium-and-long-terms-,-and-these-
timeframes-can-link-risks-to-:---ans---Crisis-management-(-immediate-risks-)-
operational-activities-(-short---term-risks-)-
business-tactics-medium-term-risks-)-
overall-strategic-decision-making-(-long---term-risks
Compliance---ans---The-simplest-description-of-compliance-is-confirming-to-rules,-laws,-
policies,-and-standards
Regulatory-Compliance---ans---Regulatory-compliance-is-the-standard-that-firms-need-to-
achieve-to-be-able-to-do-business-within-the-frameworks-set-by-the-applicable-laws-
regulations-and-other-standards
, What-are-benefits-of-effective-GRC-outside-of-regulatory-complaince-and-avoidance-of-
the-risk-of-sanctions?---ans---Quality-corporate-governance---provides-the-business-
structures-and-frameworks-needed-for-the-board-to-control-and-direct-the-firm-
Risk-analysis-and-management---enables-decisions-to-be-made-on-an-informed-basis-
Compliance-management---means-that-firms-are-engaged-with-the-legal-,-regulatory-and-
other-external-standards-requirements-or-obligations-that-are-enforced-on-the-industry
Risk-culture---ans---can-be-defined-by-the-system-of-values-and-behaviours-collectively-
called-the-culture-,-that-affect-the-firm's-risk-decisions-.-In-practical-terms-,-employees-
need-to-understand-the-firm's-risk-exposures
-The-risk-culture-is-created-by-risk---management-training-,-risk-assessment-and-guidance-
about-decision---making-.-It-involves-risk-policies-as-well-as-risk-statements-and-
procedures-.
Governance-culture-and-why-is-it-an-advantage?---ans---can-be-defined-as-the-attitudes-
and-actions-that-lead-to-the-building-of-a-strong-and-competitive-business-that-enhances-
shareholder-value-.-It-involves-the-strategic-direction-of-a-firm-,-and-how-this-strategy-is-
embedded-into-business-practices-and-leadership-capabilities-at-every-level-.-
A-healthy-governance-culture-would-create-a-reputational-advantage-among-the-external-
stakeholders
Compliance-Culture-definition,-example,-and-in-practical-terms---ans---Compliance-
culture-can-be-defined-as-the-overall-environment-that-affects-how-compliance-issues-are-
handled
In-a-strong-corporate-culture-employees-follow-the-right-processes-and-perform-the-right-
controls-even-without-oversight-
In-practical-terms-it-refers-to-how-effective-a-firm-is-in-meeting-compliance-regulations,-
and-in-fettering-and-detecting-compliance-problems
Why-us-compliant-handling-a-good-example-of-consumer-conduct-compliance?---ans---
This-is-because-the-way-a-firm-handles-complaints-forms-a-key-component-of-the-
regulator's-expectations-about-fair-treatment-of-customers
In-designing-effective-complaint---handling-systems-,-firms-should-consider-a-number-of-
different-factors-These-include-:---ans---the-size-of-the-firm-,-
the-nature-of-the-business-it-undertakes-,-
and-the-likely-complexity-and-/-or-number-of-complaints-that-could-be-received
COMPLIANCE MODULE 1 UNIT 1
GRC---ans---...the-capability-or-integrated-collection-of-capabilities,-that-enables-an-
organisation-to-reliably-achieve-objectives,-address-uncertainty,-and-act-with-integrity;-
including-the-governance,-assurance-and-management-of-performance,-risk,-and-
compliance-
GRC-is-an-umbrella-term-which-covers-a-firms-approach-to-the-three-distinct-disciplines-of-
Governance-Risk-and-Compliance
Governance-in-practice---ans---Governance-in-practice-involves-having-the-necessary-
mechanisms-to-identify-risks,-and-the-ability-to-respond-to-risks-by-working-across-the-
business-to-devise-compliant-solutions
Who-are-main-stakeholders-in-a-firm---ans---customers-
shareholders
-management-and-other-employees-
the-regulators-who-supervise-the-industry-Increasingly,
focus-is-placed-on-other-stakeholders-,-including-wider-society-,-the-local-communities-in-
which-the-firm-operates-,-the-environment-,-and-even-other-firms-in-the-same-market-.
Risk-can-affect-a-firm-in-the-immediate-,-short-,-medium-and-long-terms-,-and-these-
timeframes-can-link-risks-to-:---ans---Crisis-management-(-immediate-risks-)-
operational-activities-(-short---term-risks-)-
business-tactics-medium-term-risks-)-
overall-strategic-decision-making-(-long---term-risks
Compliance---ans---The-simplest-description-of-compliance-is-confirming-to-rules,-laws,-
policies,-and-standards
Regulatory-Compliance---ans---Regulatory-compliance-is-the-standard-that-firms-need-to-
achieve-to-be-able-to-do-business-within-the-frameworks-set-by-the-applicable-laws-
regulations-and-other-standards
, What-are-benefits-of-effective-GRC-outside-of-regulatory-complaince-and-avoidance-of-
the-risk-of-sanctions?---ans---Quality-corporate-governance---provides-the-business-
structures-and-frameworks-needed-for-the-board-to-control-and-direct-the-firm-
Risk-analysis-and-management---enables-decisions-to-be-made-on-an-informed-basis-
Compliance-management---means-that-firms-are-engaged-with-the-legal-,-regulatory-and-
other-external-standards-requirements-or-obligations-that-are-enforced-on-the-industry
Risk-culture---ans---can-be-defined-by-the-system-of-values-and-behaviours-collectively-
called-the-culture-,-that-affect-the-firm's-risk-decisions-.-In-practical-terms-,-employees-
need-to-understand-the-firm's-risk-exposures
-The-risk-culture-is-created-by-risk---management-training-,-risk-assessment-and-guidance-
about-decision---making-.-It-involves-risk-policies-as-well-as-risk-statements-and-
procedures-.
Governance-culture-and-why-is-it-an-advantage?---ans---can-be-defined-as-the-attitudes-
and-actions-that-lead-to-the-building-of-a-strong-and-competitive-business-that-enhances-
shareholder-value-.-It-involves-the-strategic-direction-of-a-firm-,-and-how-this-strategy-is-
embedded-into-business-practices-and-leadership-capabilities-at-every-level-.-
A-healthy-governance-culture-would-create-a-reputational-advantage-among-the-external-
stakeholders
Compliance-Culture-definition,-example,-and-in-practical-terms---ans---Compliance-
culture-can-be-defined-as-the-overall-environment-that-affects-how-compliance-issues-are-
handled
In-a-strong-corporate-culture-employees-follow-the-right-processes-and-perform-the-right-
controls-even-without-oversight-
In-practical-terms-it-refers-to-how-effective-a-firm-is-in-meeting-compliance-regulations,-
and-in-fettering-and-detecting-compliance-problems
Why-us-compliant-handling-a-good-example-of-consumer-conduct-compliance?---ans---
This-is-because-the-way-a-firm-handles-complaints-forms-a-key-component-of-the-
regulator's-expectations-about-fair-treatment-of-customers
In-designing-effective-complaint---handling-systems-,-firms-should-consider-a-number-of-
different-factors-These-include-:---ans---the-size-of-the-firm-,-
the-nature-of-the-business-it-undertakes-,-
and-the-likely-complexity-and-/-or-number-of-complaints-that-could-be-received
