Which of the following best describes Principled Performance®?

GRC Professionals, known as "Protectors," work to achieve a specific goal referred to as Principled Performance.

Which of the following best describes Principled Performance®?
A . To reliably achieve objectives, address uncertainty, and act with integrity C to produce and preserve value simultaneously.
B . To maximize profits and minimize losses.
C . To ensure compliance with all legal requirements.
D . To eliminate all risks and uncertainties.

View Answer

Answer: A

Explanation:

Principled Performance® is the goal of GRC professionals and is best described as the ability to:

Reliably Achieve Objectives:

Organizations must set clear, measurable objectives and work towards them consistently, using governance and risk frameworks to guide decision-making.

Address Uncertainty:

Risk and uncertainty are inherent in every organization. GRC frameworks like ISO 31000 and COSO ERM help identify, evaluate, and manage uncertainties effectively.

Act with Integrity:

Ethical decision-making and compliance with laws and regulations ensure the organization operates responsibly and builds trust with stakeholders.

Produce and Preserve Value:

Through integrated GRC practices, organizations create value by achieving their goals while mitigating risks and maintaining ethical standards.

Why Other Options are Incorrect:

B: Maximizing profits is a financial objective, but Principled Performance encompasses broader strategic, ethical, and risk-related goals.

C: Legal compliance is a part of GRC, but Principled Performance goes beyond mere compliance to ensure ethical integrity and strategic alignment.

D: Eliminating risks entirely is unrealistic. The goal is to manage risks effectively, not eliminate them altogether.

Reference: OCEG Capability Model: Principles of achieving objectives with integrity and reliability.

COSO ERM Framework: Guidance on managing risk in support of value creation.

ISO 31000: Principles and guidelines for addressing uncertainty in decision-making.