GRCP Test Questions with Correct Answers Latest Update 2025
Governance - Answers the act of externally directing, controlling, and evaluating an entity,
process, or resource (board of directors); reliably achieve objectives
Management - Answers the act of internally directing, controlling, and evaluating an entity, or
process, or resource
Assurance - Answers the act of objectively evaluating an entity, process, or resource (internal
audit group)
Objective - Answers explicit goal that can be measurably achieved; must be stated/define, must
be measuarable
Performance - Answers measure of the degree to which an objective is achieved relative to a
target
Target - Answers expected or planned value (100 units sold)
Tolerance - Answers acceptable level of variation of performance relative to achievement of an
objective (+- 2 of 100 units sold)
Threat - Answers an event that has an undesirable effect on achieving objectives
Opportunity - Answers an event that has a desirable effect on achieving objectives
Risk - Answers undesirable effect of uncertainty on achieving objectives
Reward - Answers desirable effect of uncertainty of achieving objectives
Requirement - Answers something that an entity must address as a result of making a promise
Mandatory Requirement - Answers a promise that is compelled by another party (such as the
government)
Voluntary Requirement - Answers a promise that is willingly extended to another party (such as
a business partner, customer, or employee)
Compliance - Answers the state of being able to prove the fulfillment of a requirement; acting
with integrity
GRC - Answers Governance, Risk and Compliance; a capability that enables an organization to
reliably achieve objectives while addressing uncertainty and acting with integrity
Risk Management - Answers the act of managing processes and resources to address risk
while pursuing reward; addressing uncertainty
Risk Appetite - Answers the level of risk that the organization is willing to take while pursuing
Governance - Answers the act of externally directing, controlling, and evaluating an entity,
process, or resource (board of directors); reliably achieve objectives
Management - Answers the act of internally directing, controlling, and evaluating an entity, or
process, or resource
Assurance - Answers the act of objectively evaluating an entity, process, or resource (internal
audit group)
Objective - Answers explicit goal that can be measurably achieved; must be stated/define, must
be measuarable
Performance - Answers measure of the degree to which an objective is achieved relative to a
target
Target - Answers expected or planned value (100 units sold)
Tolerance - Answers acceptable level of variation of performance relative to achievement of an
objective (+- 2 of 100 units sold)
Threat - Answers an event that has an undesirable effect on achieving objectives
Opportunity - Answers an event that has a desirable effect on achieving objectives
Risk - Answers undesirable effect of uncertainty on achieving objectives
Reward - Answers desirable effect of uncertainty of achieving objectives
Requirement - Answers something that an entity must address as a result of making a promise
Mandatory Requirement - Answers a promise that is compelled by another party (such as the
government)
Voluntary Requirement - Answers a promise that is willingly extended to another party (such as
a business partner, customer, or employee)
Compliance - Answers the state of being able to prove the fulfillment of a requirement; acting
with integrity
GRC - Answers Governance, Risk and Compliance; a capability that enables an organization to
reliably achieve objectives while addressing uncertainty and acting with integrity
Risk Management - Answers the act of managing processes and resources to address risk
while pursuing reward; addressing uncertainty
Risk Appetite - Answers the level of risk that the organization is willing to take while pursuing
