Certified Supply Chain Professional (CSCP) Practice Exam

Which of the following best describes compliance in the GRC framework?

1. Flexibility in regulations

2. Conformance to stated requirements

3. Facilitating voluntary practices

4. Only focusing on governance

The correct answer is: Conformance to stated requirements

Compliance in the Governance, Risk management, and Compliance (GRC) framework refers specifically to the adherence to laws, regulations, policies, and standards that an organization must follow. This aspect is crucial for ensuring that the organization operates within the legal and regulatory boundaries set by external authorities and internal policies. Choosing conformance to stated requirements as the best description of compliance highlights its emphasis on meeting these obligations. Organizations must not only be aware of the regulations that apply to them but also actively implement and maintain practices that align with these regulations. This involves regular audits, monitoring, and reporting to confirm that they are meeting all necessary requirements. The other options do not accurately capture the essence of compliance. Flexibility in regulations suggests that there can be leniencies or interpretations, which is not typically synonymous with compliance, as organizations must adhere strictly to established guidelines. Facilitating voluntary practices implies that compliance is optional, which contradicts the mandatory nature of legal and regulatory requirements. Focusing solely on governance ignores the broad spectrum of compliance responsibilities, which also includes risk management and operational standards alongside governance practices.