Term
| what benefits does GRC have |
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Definition
| Customer can Analyze, Manage and Monitor or Manage, Protect, Perform (or similar) |
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Term
| what does the acronym GRC mean |
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Definition
| Governance Risk Compliance |
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Term
| what does GRC Access control do |
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Definition
| it automates and manages the accses requesting, confirming and analyzing |
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Term
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Definition
| Takes care of customs documents, enforces embargoes and SPL, stores trade agreements, if intergrated with EH&S can enforce import and export limits |
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Term
| What does the acronym GTS mean |
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Definition
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Term
| what does the acronym SPL mean |
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Definition
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Term
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Definition
| a sap add-on wich makes noticing and managing risks easier (or something similar) |
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Term
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Definition
| Sarbanes-Oxley act demands the ceo and cfo look at financial statements and confirm that they are true, it also asks for more auditing and awarness of what is happening in the company |
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Term
| What is the primary goal of corporate governance |
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Definition
| To create a balance of power-sharing among shareholders, directors, and management to enhance shareholder value and protect the interests of other stakeholders |
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Term
| What is the primary mission of a public company |
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Definition
| To create sustainable and enduring shareholder value. |
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Term
| What is the role of a corporate governance gatekeeper |
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Definition
| To align management’s interests with those of long-term shareholders and to protect investors from misleading financial information published in public filings. |
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Term
| Corporate governance reforms and best practices require the establishment of what four key gatekeepers to deal with the perceived agency problems of asymmetric information between management and investors and to improve the quality of public financial information? |
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Definition
(1) Independent and competent board of directors; (2) independent and competent
external auditor; (3) objective and competent legal counsel; and (4) objective and competent financial advisors and investment bankers. |
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Term
| How does an effective corporate governance structure improve investor confidence |
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Definition
| It ensures corporate accountability, enhances the reliability and quality of public financial information, and enhances the integrity and efficiency of the capital market |
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Term
| What is the primary intent of corporate governance reforms |
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Definition
To improve:
•The reliability, integrity, transparency, and quality of financial reports.
•The effectiveness of internal controls over financial reporting and related risk management assessment.
•The credibility of the external audit function.
•The independence and objectivity of other gatekeepers such as legal counsel and financial analysts.
•Shareholder monitoring and democracy |
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Term
| benefits are obtained by the proper implementation of SOX? |
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Definition
•Improved corporate governance.
•Enhanced quality, reliability, and transparency of financial information.
•Improved audit objectivity and effectiveness in lending credibility to published financial statements |
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Term
| How can the board of directors influence the corporate culture? |
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Definition
•Set an appropriate “tone at the top,” promoting personal integrity and professional accountability.
• Reward high-quality and ethical performance.
•Discipline poor performance and unethical behavior.
•Maintain the company’s high reputation and stature in the industry and the business community. |
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Term
| What is the intention of organizational codes of business ethics and conduct |
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Definition
| Codes of business ethics and conduct are intended to govern behavior, but they cannot substitute for moral principles, culture, and character |
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Term
| Corporate governance depends on what three practices to be effective? |
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Definition
• Compliance with state and federal statutes.
• Compliance with listing standards.
• Implementation of best practices suggested by investor activists and professional organizations |
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Term
| Why is there no universal definition of corporate governance |
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Definition
| The scope covers a vast array of distinct economic phenomena and it is often described from a shareholder’s view |
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Term
| How have SOX provisions, SEC-related rules, and listing standards influenced the corporate governance structure? |
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Definition
•Auditors, analysts, and legal counsel who were not traditionally considered components of corporate governance are now brought into the realm of internal governance as gatekeepers.
•The legal status and fiduciary duty of company directors and officers have been more clearly defined and significantly enhanced.
•Certain aspects of state corporate law were preempted and federalized |
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Term
| What business entities are currently affected by SOX |
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Definition
| SOX applies equally to and is intended to benefit all publicly traded companies, although many provisions are also relevant to private and not-for-profit organizations |
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Term
| What is the difference between a shareholder and a stakeholder? |
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Definition
| Shareholders are individuals or groups who are traditionally the primary users of the company’s financial reports, which reflect the company’s financial condition and the results of operations. They also have greater rights of involvement with decisions and monitoring of a company. Stakeholders are individuals or groups, including shareholders, creditors, customers, employees, suppliers, competitors, governmental entities, environmental agencies, and social activists, who affect the company’s strategic decisions, operations, and performance |
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Term
| What is the relationship between corporations and stakeholders, and what is the corporations’ role in that relationship |
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Definition
| There is a contractual relationship between corporations and their stakeholders. The corporations’ role is to create and protect the value of that contract |
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Term
| What is the primary difference between the first and second tier of the stakeholder hierarchy |
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Definition
| The first tier is the shareholders and owners of the corporation. They are absent in the daily operations. The second tier consists of those involved in the operations of the corporations. |
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Term
| To whom are corporations accountable? |
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Definition
| Corporations are accountable to all internal and external stakeholders in a corporation. This can lead however to agency problems. |
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Term
| Explain the relationship between corporations and the capital markets in the United States. |
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Definition
| The capital markets provide funds to corporations and thus monitor their corporate governance to align the interests of management with the interests of investors. On the other hand, corporations provide relevant financial information to the capital markets, which facilitates the efficiency and liquidity of the capital markets |
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Term
| This Has Nothing To Do With GRC |
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Definition
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Term
| Investors are taking a more active role in their financial future through private investments in the securities markets True or False |
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Definition
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Term
| The involvement of the board of directors, audit committee, management, and auditors is considered a value-adding function True or False |
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Definition
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Term
| Investors should not and do not rely on financial reports for decision making purposes. True or False |
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Definition
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Term
| The board of directors is elected by shareholders and is responsible for hiring the appropriate management to operate the daily company operations True or False |
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Definition
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Term
| Recent accounting scandals helped to boost the public’s confidence and trust in financial disclosures presented in financial reports True or False |
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Definition
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Term
| A corporate gatekeeper is assigned to ensure that only authorized individuals are allowed in the corporate offices True or False |
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Definition
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Term
| Companies with a well-defined corporate governance structure are more likely to restate their earnings than companies with no corporate governance structure True or False |
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Definition
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Term
| Corporate governance has one worldwide accepted definition, “To promote corporate fairness, transparency, and accountability.” |
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Definition
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Term
| Market correction mechanisms are preventive measures initiated prior to abuse and loss True or False |
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Definition
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Term
| Corporate governance regulations will continue to be a leading discussion among policy makers, stakeholders, and corporate activists even as changes are made True or False |
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Definition
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Term
| Sarbanes-Oxley applies to both public and private companies with annual revenues $10 million or greater True or False |
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Definition
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Term
| Integrity in the equity market and restored investor confidence are both primary purposes of the Sarbanes-Oxley Act True or False |
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Definition
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Term
| Compliance is compliance and a company does not need to establish a compliant culture from the top down True or False |
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Definition
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Term
| Financial markets play an important role in creating safe, efficient, and the most competitive capital markets to ensure economic growth, low costs of capital, entrepreneurship, innovation, and job creation True or False |
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Definition
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Term
| The preservation of the integrity, reputation, and efficiency of the capital markets is not the responsibility of all capital market participants True or False |
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Definition
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Term
| The free enterprise system in the United States is characterized by a dispersed capital ownership structure True or False |
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Definition
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Term
| Recent reported financial scandals prove that market mechanisms by themselves may not be adequate to monitor, control, and discipline business affairs, and corporate governance reforms are needed to correct the perceived failures of market mechanisms True or False |
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Definition
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Term
| The improvement in public trust and investor confidence in corporate America, its financial reports, and capital markets is of no concern or priority to public companies True or False |
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Definition
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Term
| Shareholders who invest capital in U.S. companies are often close by distance or knowledge to those managing corporations True or False |
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Definition
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Term
| Corporations in the United States are viewed as creators of value for all concerned stakeholders True or False |
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Definition
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Term
| All stakeholders are provided with incentives and opportunities to reward corporations for good performance and discipline them for poor performance |
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Definition
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Term
| The first tier of stakeholder hierarchy is investors or shareholders who own the company True or False |
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Definition
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Term
| The extent to which an organization derives its funding from equity or debt does not significantly affect the business decisions of the company True or False |
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Definition
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Term
| The sustainability and financial health of public companies, public trust, and investor confidence in financial reports play a crucial role in the integrity and efficiency of the capital markets and the economic growth and prosperity of the nation True or False |
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Definition
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Term
| Reliability, accuracy, and transparency of financial information do not play a vital role in the efficiency, integrity, and safety of the capital markets True or False |
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Definition
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Term
| The primary role of all corporate governance participants, as defined in this book, should center around the fundamental theme of protecting shareholders, restoring investor confidence, and supporting strong and efficient capital markets. True or False |
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Definition
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Term
| A compliance culture requires the establishment and implementation of proper programs, policies, and procedures to effectively comply with applicable regulations, laws, rules, standards, and best practices. True or False |
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Definition
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Term
| Companies that are well governed will usually outperform poorly governed companies and will be able to attract investors to help finance further growth True or False |
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Definition
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Term
| Shareholders are a type of stakeholder True or False True or False |
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Definition
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Term
| The board of directors is held personally liable for all damages caused by decisions that resulted in unsuccessful conclusions True or False |
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Definition
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Term
| Corporations in the United States are viewed as destroyers of value for all concerned stakeholders True or False |
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Definition
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Term
| The relationship between corporations and society is contractual and is demonstrated by a give/take scenario True or False |
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Definition
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