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.
References:
* 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.