In the context of GRC, what is the importance of aligning objectives throughout the organization?

In the context of GRC, what is the importance of aligning objectives throughout the organization?
A . It ensures that superior-level objectives cascade to subordinate units and that subordinate units contribute to the most important objectives and priorities of the organization.
B . It enables the governing authority to only focus on the highest-level objectives that are tied to financial outcomes.
C . It frees the organization to focus solely on short-term financial performance.
D . It eliminates the need for excessive communication and collaboration between different departments within the organization.

View Answer

Answer: A

Explanation:

Aligning objectives across the organization ensures coherence and coordination in achieving strategic goals.

Cascade of Objectives:

High-level organizational objectives are broken down into actionable goals for departments and teams.

Ensures every part of the organization contributes to overarching priorities.

Integration and Collaboration:

Departments work together to achieve shared goals, fostering synergy and reducing silos.

Strategic Alignment:

Alignment ensures that all efforts are directed toward achieving the organization’s mission and vision effectively.

Why Other Options Are Incorrect:

B: Alignment supports all objectives, not just financial outcomes.

C: It balances short-term and long-term goals.

D: Alignment necessitates communication and collaboration.

Reference: OCEG GRC Capability Model: Stresses the importance of objective alignment for principled performance.

COSO ERM Framework: Highlights the role of strategic alignment in achieving objectives.