Why is it essential to ensure that every issue or incident is addressed?
A.
To provide incentives to employees for favorable conduct.
B.
To compound and accelerate the impact of favorable events.
C.
To maintain employee and other stakeholder confidence in the system’s effectiveness.
D.
To escalate incidents for investigation and identify them as in-house or external.
The Answer Is:
C
This question includes an explanation.
Explanation:
Addressing every issue or incident is critical to maintaining confidence in the organization’s governance and risk management systems.
Key Reasons to Address All Issues:
Employee and Stakeholder Confidence: Demonstrates that the organization takes issues seriously and acts responsibly.
System Integrity: Ensures the effectiveness and credibility of governance and compliance frameworks.
Impact of Neglecting Issues:
Loss of trust among employees and external stakeholders.
Increased risk of repeated incidents or unresolved weaknesses.
Why Other Options Are Incorrect:
A: Incentives promote positive conduct but do not directly relate to addressing every issue.
B: Compounding favorable events is unrelated to addressing specific issues.
D: Escalation is part of issue management but does not replace the need for comprehensive resolution.
[References:, COSO ERM Framework: Highlights the importance of addressing incidents to maintain trust in the system., OCEG GRC Capability Model: Recommends systematic resolution of all identified issues., , , ]
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