A scale on which information is displayed in categories without any specific order. Usage Notes: Typical scales include: Blue, Green, Yellow Fruits, Vegetables Cars, Trucks Only the most simple operations, such Full Article…
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Includes operators of the organization at all levels.
States what the organization will be.
State what the organization stands for and the guide the conduct of both individuals and the organization as a whole.
Is the use of external funds to finance risk.
Is an event that has, on balance, an undesirable effect on achieving objectives.
Is an estimate of when something may happen.
Is a person, group, or organization that has direct or indirect stake in an organization because it can affect or be affected by the organization’s actions, objectives, and policies.
Is the level of risk that the organization is unwilling to exceed to achieve objectives.
Is the act of managing processes and resources to address risk while pursuing reward.
Provides funds to reduce the financial impact of undesirable effects experienced by an organization.
Includes the values, beliefs and behaviors about the governance, assurance and management of risk including: setting risk appetite and tolerances; views about impact of risk on conduct and decisions; and Full Article…
The maximum level of risk that the organization is able to address.
The level of risk that the organization is willing to accept to achieve objectives.
Risk Analysis Criteria
Are quantitative or qualitative values against which level of risk is evaluated.
Rewarding Actions & Controls
To recognize desirable conduct; and encourage similar conduct in the future.
Is the use of internal funds to finance risk.
Responsive Actions & Controls
Reward desirable; and correct undesirable conditions or events
Desirable conditions and events with rewards; and correct undesirable conditions and events so that the organization recovers from and resolves each immediate issue and improves future performance.
Is the level of risk after actions and controls are in place.
Is something that an entity must address as a result of making a promise. Usage Notes Mandatory Requirement is a promise that is compelled by another party (such as the Full Article…
Is a positive/negative affect on financial assets, tangible assets, intangible assets, business continuity, and health & safety.
Is an impact often expressed using an ordinal scale or nominal scale.
Provides the “how to” of policies and guides their implementation; is audience-specific; provides exact instructions that will ensure compliance with a given policy.
Proactive Actions & Controls
Proactively incent desirable; and prevent undesirable conditions or events.
Proactively incent desirable conditions and events; and prevent undesirable conditions and events with management actions and controls.
Provides the “why;” is high level and strategic; sets the tone, context or intent; and changes infrequently.
Is the level of reward that the organization expects to gain once planned actions and controls are operating.
Is the act of managing processes and resources to pursue reward while also addressing risk
Includes the values, beliefs and behaviors about the governance, assurance and management of performance including: setting objectives and indicators of performance; enabling and evaluating performance; and how individual and team Full Article…
The ways and means of governance, performance, risk, control and compliance capabilities
Is an event that has, on balance, a desirable effect on achieving objectives.
Provides multiple pathways to report the actual or potential occurrence of undesirable conditions, events and conduct; as well as the occurrence of desirable events.
states what the organization will achieve
Includes the values, beliefs and behaviors about how processes, resources and the organization itself are internally directed, controlled and evaluated including: the way authority is delegated; the degree to which Full Article…
Management Actions & Controls
Help internally direct, control and evaluate an entity, process or resource.
Are decisions, processes and use of associated resources which increase the likelihood that objectives are achieved.
Provides “just-in-time” advice and education to individuals while they are performing a task.
To organize separate parts to provide a coordinated harmonious whole.
Periodically seek input to understand perceptions about the governance, assurance and management of performance, risk and compliance; and the occurrence of undesirable events and activities.
Is the level of risk in the absence of actions and controls.
Implements and manages so that capability information is relevant, reliable, timely, secure and available.
Is a live or on-demand channel for individuals to ask questions before or while they are engaging in a task.
Includes any role that is primarily charged with the governance, assurance or management of performance, risk and compliance.
Is the capability or integrated collection of capabilities that enables an organization to reliably achieve objectives, address uncertainty and act with integrity; including the governance, assurance and management of performance[/], Full Article…
Includes the values, beliefs and behaviors about how processes, resources and the organization itself are externally directed, controlled and evaluated including the involvement of the board of directors. How power Full Article…
Governance Actions & Controls
Help externally direct, control and evaluate an entity, process or resource.
/ Drive events, conditions and requirements that affect the achievement of objectives. Usage Notes A change in condition is easily understood to be an event. Industry forces competitors, supply chain, Full Article…
Includes the entity and its network of suppliers and business partners.
Includes the values, beliefs and behaviors about responsible behavior and integrity.
The ways and means of governance, performance, risk, control, compliance, and ethics capabilities into other business processes.
A measure of the likelihood, timing and impact of an event on something.
Detective Actions & Controls
Detect the actual or potential occurrence of desirable and undesirable conditions and events.
Ongoing progress toward objectives as well as actual and potential undesirable conditions and events using management actions and controls.
includes the values, beliefs and behaviors characteristic of an entity
Corrective Actions & Controls
Cleans up the mess caused by the occurrence of undesirable conditions or events; and reduces the ongoing likelihood, impact and velocity of additional undesirable conditions, events and effects.
Is the act of externally directing, controlling and evaluating a corporation.
Is a state of being that has a desirable or undesirable effect (or both) on objectives.
Delivers relevant, reliable, and timely information to the right audiences as required by mandates or as needed to perform responsibilities and effectively shape attitudes.
Includes the values, beliefs and behaviors about the governance, assurance, and management, of compliance including: identifying compliance requirements. Views about the impact of compliance on conduct and decisions; and modeling of Full Article…
Is the state of being able to prove the fulfillment of a requirement.
Is the combination of knowledge, skills and behavior that enables an individual to do their job.
Is the corporate board of directors or any other oversight authority for the organization.
Assurance Actions & Controls
Help objectively evaluate an entity, process or resource.
Is the act of objectively evaluating an entity, process or resource using suitable criteria.
To identify threats, opportunities and requirements; assess the level of risk, reward and conformance; and align an approach to reliably achieve objectives while addressing uncertainty and acting with integrity.
A useful asset that can be used to achieve objectives such as capital, people, technology, facilities and information. Usage Notes Resources are used in processes to develop value and achieve Full Article…
A sequence of interdependent and linked procedures which consume one or more resources to convert inputs into outputs.
The act of internally and directly guiding, controlling and evaluating an entity, process or resource. Usage Notes Management is different from governance because management must be INTERNAL to the object Full Article…
(of an object or system) The state of being whole and complete. (of a person or organization) The keeping and honoring of promises. Usage Notes If a promise cannot be Full Article…
The act of reliably achieving objectives while addressing uncertainty and acting with integrity. Principled Performance provides a modern point of view and disciplined approach to business. The definition above can Full Article…
Standards against which evaluation or decisions are based. Usage Notes Criteria may include quantitative targets and tolerances; and other qualitative items. Some specific example of criteria include: Performance Criteria Risk Full Article…
A measurable value that an entity strives to achieve. Usage Notes Targets are used to guide activity. A target is a single value. A range of acceptable values is expressed Full Article…
The acceptable level of departure from a target. Usage Notes Tolerance is usually expressed using the same unit of measure as the target– or some percentage of the target. As Full Article…
A metric that can be used to judge underlying activity. Usage Notes There are three types of indicators: leading indicator, lagging indicator and coincident indicator Indicators are metrics that can Full Article…
A single value obtained by direct measurement, or calculated using several other constituent values. Usage Notes “Total Sales” is a metric that directly measures the quantity of sales in a Full Article…
An indicator that accurately represents current activity. Usage Notes Coincident indicators are often called real-time indicators.
An indicator that records past activity.
An indicator that predicts future activity. Usage Notes Leading indicators are difficult to design and, typically, require historical information to validate.
To measure something against criteria. Usage Notes Measurement and evaluation are related concepts. Measurement is, generally, free from judgement. Evaluation, on the other hand, uses one or more metrics to Full Article…
To reduce the uncertainty of a value using a standardized unit of measure. A value or a metric. Usage Notes Measurement is not perfect. There will always be some sort of Full Article…
Purpose of the GRC Glossary
The main aims of the OCEG GRC Glossary are to: provide an open and interdisciplinary source of plain-language definitions related to principled performance and GRC which includes the governance, assurance Full Article…
A measure of how quickly an entity is impacted once an event occurs. Usage Notes Quantitatively, velocity is expressed using a unit of time (days, hours, minutes, seconds or some sub-second measure). Qualitatively, Full Article…
An observable action, occurrence, or a change in condition. A change in knowledge about a condition, even if the condition did not change. NOTES A change in condition is easily Full Article…
The hypothetical probability that an event that has already occurred would yield a specific outcome. Usage Notes Unlike probability, mathematical likelihood is used to evaluate past events. Historical Notes Formerly, Full Article…
A measure of the chance that an event (or set of events) will occur expressed on a linear scale from 0 (impossibility) to 1 (certainty). Usage Notes: Sometimes, probability is expressed Full Article…
A scale on which information is displayed in order of magnitude because there is no standard of measurement of differences. Usage Notes: Typical scales include: High, Medium, Low Hot, Medium, Full Article…
A measure of the chance of an event occurring. Usage Notes Quantitatively, likelihood is typically expressed as either: Probability Likelihood (Mathematical) Qualitatively, likelihood is typically expressed using an Ordinal Scale (high, medium, low). Be careful Full Article…
Any individual or collection of individuals such as a team, group, organization or company. Usage Notes Entity is often used when something can be applied at both an organizational as Full Article…
Something that an entity intends to attain or accomplish. Usage Notes To be measurable, objectives must be mapped to indicators, targets and tolerances. Synonyms Purpose Goal
A measure of how an entity or its objectives are affected. Usage Notes Quantitatively, impact is often expressed as: positive/negative affect on financial assets positive/negative affect on other tangible assets (facilities, Full Article…
The state of being unable to completely predict; determine; or define something. Additional Definitions From Well-Known Sources
(when dealing with a future event) A measure, expressed as a function of the likelihood that an event may occur, how fast the event may impact objectives and the estimated negative Full Article…
A measure of the negative effect of uncertainty on achieving objectives. A measure of the likelihood that an event may occur, how fast the event may impact the entity, and the estimated Full Article…
The act of externally and indirectly guiding, controlling and evaluating an entity, process or resource. Usage Notes Governance is different from management because governance must be EXTERNAL to the object Full Article…
The integrated collection of capabilities that enable an organization to reliably achieve objectives while addressing uncertainty and acting with integrity. It encompasses the governance, assurance and management of performance, risk, Full Article…