How do detective actions and controls contribute to managing performance?
Correct Answer: B
Question 82
In the Lines of Accountability Model, what is the role of the Second Line?
Correct Answer: D
Question 83
(How is the effect of uncertainty on objectives classified as either positive or negative?)
Correct Answer: A
In risk and governance practice, uncertainty affecting objectives can produce both upside and downside outcomes. Many GRC and ERM teachings separate these into upside (reward/opportunity) and downside (risk/threat) impacts, reinforcing that risk management is not only loss prevention but also informed decision- making about value creation. Option A aligns with that common classification by naming the positive effect reward and the negative effect risk. The other options use terms that are not standard pairings in GRC language: "harm" is an outcome but not the typical umbrella classification opposite "benefit" (B), "prospect" is generally associated with upside rather than negative (C), and "obstacle" is not the usual term used to define negative uncertainty effects in ERM taxonomies (D). This framing supports balanced governance: leaders evaluate uncertainty relative to objectives, select responses (avoid, mitigate, transfer/share, accept, pursue), and ensure controls and incentives do not eliminate prudent risk-taking that enables strategic gains.
Question 84
In the IACM, what is the role of Governance Actions & Controls?
Correct Answer: C
Question 85
What are some examples of non-economic incentives that can be used to encourage favorable conduct?
Correct Answer: A
Non-economic incentives are intangible motivators that encourage favorable behavior and performance without providing direct financial compensation. * Examples of Non-Economic Incentives: * Appreciation:Recognizing employees for their contributions (e.g., public acknowledgment or awards). * Status:Offering titles, roles, or responsibilities that elevate an employee's position or reputation. * Professional Development:Providing opportunities for skills enhancement, training, or career growth. * Why Option A is Correct: * Option A includes intangible motivators like appreciation, status, and professional development, which are true examples of non-economic incentives. * Option B lists financial incentives. * Option C focuses on short-term rewards, which are more tangible than non-economic. * Option D refers to employee benefits, which are economic in nature. * Relevant Frameworks and Guidelines: * ISO 30414 (Human Capital Reporting):Highlights the role of recognition and development in motivating employees. In summary, non-economic incentives such asappreciation, status, and professional developmentare effective tools for encouraging favorable conduct and fostering engagement.
