Exam IIA-CIA-Part1 topic 6 question 411 discussion

Governance refers to the processes, structures, and mechanisms used by an organization to: -Direct and control operations. -Ensure accountability. -Achieve objectives and protect stakeholders' interests. Cultural risk factors, such as poor ethical culture, lack of transparency, resistance to accountability, or weak tone at the top, can: -Impair the effectiveness of governance activities, leading to failures in oversight, poor decision-making, and increased risk exposure. Thus, acknowledging the impact of cultural factors on governance effectiveness is a true and widely recognized statement. A wrong: It's the other way around: risk management is part of the broader governance structure. Governance encompasses risk management, not the reverse.