GRCP practice questions, page 4 of 4, with answer review and explanations.
Question 16
What is the difference between a mission and a vision?
The mission is what a for-profit organization should have, while the vision is for non-profit organizations.
The mission is a short-term financial goal, while the vision is a long-term non-financial goal.
The mission states the organization’s purpose and direction, while the vision is an aspirational objective that states what the organization aspires to be.
The mission is determined by external stakeholders, while the vision is determined by internal stakeholders.
Question 17
What criteria should objectives meet to be considered effective?
Objectives should be sought by a majority of the stakeholder categories for the organization
Objectives should only have one timescale, e.g. quarterly, annually, 5 years
Objectives should be based only on financial metrics for each unit or department
Objectives should meet the SMART criteria (Specific, Measurable, Achievable, Relevant, Timebound)
Question 18
What are key risk indicators (KRIs) associated with?
The quality of products and services offered to customers
The negative, unfavorable effect of uncertainty on objectives
The rate of return on investment and capital allocation
The level of innovation and technological advancement
Question 19
What is the purpose of mapping objectives to one another?
Mapping objectives allows the organization to ignore subordinate-level objectives and focus only on superior-level objectives.
Mapping objectives is only relevant for financial objectives and has no impact on non-financial objectives.
Mapping objectives shows how objectives impact one another and helps allocate resources to achieve the most important objectives and priorities.
Mapping objectives is a way to reduce the need for communication and collaboration between different departments within the organization.
Question 20
What is the term used to describe a measure that estimates the likelihood and impact of an event?