The duality of compliance, as defined within the OCEG GRC framework, refers to the two fundamental and interconnected aspects of the compliance function. The first aspect is the proactive fulfillment of obligations, which can be mandatory (e.g., laws, regulations) or voluntary (e.g., ethical codes, industry standards). The second aspect is the management of compliance-related risks, which are the uncertainties and potential negative impacts (such as fines, sanctions, or reputational damage) that arise from the failure to meet those obligations. This dual focus ensures a comprehensive approach that goes beyond simple rule-following to include proactive risk management.

A. This describes the scope and jurisdiction of compliance obligations, not the inherent dual nature of the compliance function itself.

B. This describes a strategic business decision related to resource allocation and budgeting, not the conceptual framework of compliance duality.

D. This refers to a broader concept in business ethics and corporate social responsibility, not the specific technical definition of compliance duality in GRC.

1. OCEG, "GRC Capability Model 3.5" (The Red Book), Open Compliance and Ethics Group, 2021.

Page 23, Section 2.2.2 Define the compliance and ethics risk universe: "Compliance has a duality. On one side, it is about ensuring that the requirements of obligations are met. On the other side, it is about considering the risk of failing to meet requirements of obligations. Both sides of this duality must be addressed in the compliance and ethics risk universe." This directly supports the correct answer by defining the two sides of compliance: meeting obligations and managing the risk of failure.

2. Steinberg, R. M., "Governance, Risk Management, and Compliance: It Can't Happen to Us--Avoiding Corporate Disaster While Driving Success," John Wiley & Sons, 2011. (Note: Richard Steinberg was a lead author of the OCEG GRC Capability Model).

Chapter 5, "Risk Management," discusses how compliance risk is the risk of failing to comply with requirements. The text implicitly supports the duality by separating the act of compliance from the management of risks associated with non-compliance, a core tenet of the OCEG framework he helped create.