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What does Due Care refer to in the context of governance?

Regulatory compliance

Fiduciary responsibility, governance, policy, oversight

Due Care in the context of governance refers to the responsibility of organizations to take the necessary precautions to ensure that their actions align with legal and regulatory standards as well as with their own policies and ethical norms. It encompasses the broader spectrum of fiduciary responsibility, which involves the obligation to act in the best interests of stakeholders, including shareholders, customers, and employees.

This concept embodies the diligence and prudence that an organization should exercise in managing resources and implementing controls. It highlights the importance of oversight and governance mechanisms to ensure accountability and transparency in decision-making processes. By instituting proper governance frameworks, an organization demonstrates its commitment to ethical standards, effective risk management, and compliance with policies, all of which are integral to Due Care.

The other choices do not encapsulate the entirety of what Due Care represents. Regulatory compliance is a component of Due Care but does not capture the broader aspect of fiduciary responsibility and governance practices. Data protection practices and financial auditing, while important, are more specialized and do not reflect the complete notion of governance responsibility associated with Due Care. Each of these narrower topics falls under the umbrella of responsibilities that must be managed with Due Care, but they do not define it in its entirety.

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Data protection practices

Financial auditing

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