GRC Interview Questions Breakdown

Jul 15, 2024

GRC Interview Questions - Lecture Notes

Introduction

  • GRC stands for Governance, Risk, and Compliance.
  • Series made in two parts focusing on GRC interview questions.

Core Concepts of GRC

Governance

  • Ensures corporate activities align to support business goals.
  • Involves systems, structures, policies, and strategies.
  • Example: Parenting governance - fixed rules for children to create a better life.

Risk Management

  • Identifying, analyzing, evaluating, and treating risks to an acceptable level.
  • Cannot eliminate risks but can reduce them to a manageable level.

Compliance

  • Adhering to rules, policies, standards, and laws.
  • Example: Insurance companies in India must comply with IRDA guidelines.

Key Interview Questions

1. Understanding GRC

  • Common opening question to assess basic understanding of GRC.
  • Governance: Set of rules, policies, and processes.
  • Risk Management: Managing risk within acceptable levels.
  • Compliance: Following rules and regulations.

2. Difference Between Secrecy and Privacy

  • Privacy: State of information limited to an individual.
  • Secrecy: State of information related to the enterprise or business.

3. Types of Audit

  • Internal Audit (First Party): Conducted within the organization by its own resources.
  • Vendor Audit (Second Party): Audit conducted on vendors before onboarding.
  • Independent Audit (Third Party): External audits like ISO audits.

4. Implementing Information Security Plan

  • Steps:
    1. Conduct Risk Assessment: Evaluate current state.
    2. Perform Gap Analysis: Determine resource investment needs.
    3. Align Strategy with Business Needs: Ensure budget alignment.
    4. Document Risks: Use risk registers, submit business cases to management.

5. Risk Management

  • Objective: Limit risk to acceptable levels.
  • Phases:
    1. Risk Identification: Identify context, assets, threats, vulnerabilities.
    2. Risk Analysis: Assess the impact (Qualitative & Quantitative).
    3. Risk Evaluation: Evaluate risks for treatment.
    4. Risk Treatment: Avoid, Transfer, Mitigate, Accept.

Risk Identification Example:

  • Asset: Data center.
  • Threat: Hacker.
  • Vulnerability: Weak password.
  • Impact: Data disclosure.

Risk Analysis Methods:

  • Qualitative: Impact categorized as high, low, medium.
  • Quantitative: Impact measured in numbers.

Risk Treatment Options:

  1. Avoidance: Avoid if impact is high, reward is low.
  2. Transfer: Transfer financial impact via insurance.
  3. Mitigation: Implement controls to reduce risk.
  4. Acceptance: Accept if the risk is within tolerable levels.

Final Concepts

  • Risk Appetite: Level of risk willing to take for projects.
  • Risk Tolerance: Degree of deviation acceptable.
  • Residual Risk: Risk remaining post controls.

Conclusion

  • Risk Management revolves around reducing risk to acceptable levels.
  • For interview preparations focus on basic elements, real-world examples, and a clear understanding of key GRC functions.