GRC Analyst Practice Test 2025 – Complete Exam Prep Resource

Question: 1 / 400

How can an organization identify emerging risks?

By conducting annual performance reviews

By establishing a set budget for compliance training

By monitoring trends and conducting regular risk assessments

Monitoring trends and conducting regular risk assessments is essential for identifying emerging risks within an organization. This proactive approach allows businesses to stay ahead of potential threats that could impact their operations, reputation, or compliance obligations.

By keeping an eye on industry trends, technological advancements, regulatory changes, and other external factors, organizations can pinpoint risk factors that may not yet be apparent but could affect them in the future. Regular risk assessments provide a structured process to evaluate the risk landscape continuously, allowing organizations to adjust their risk management strategies in response to identified trends.

In contrast, conducting annual performance reviews primarily focuses on employee performance and may not provide insights into broader organizational risks. Establishing a budget for compliance training, while important for compliance measures, does not inherently involve the identification of emerging risks. Evaluating employee satisfaction surveys can offer valuable insights into workforce morale and engagement but typically does not relate to external or systemic risks that may arise within the organization’s environment.

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By evaluating employee satisfaction surveys

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