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ORA-01031: insufficient privileges

In most cases, the user receiving this error lacks a privilege to create an object (such as a table, view, procedure and the like).
Grant the required privilege like so:
grant create table to user_lacking_privilege;

Startup

If someone receives this error while trying to startup the instance, the logged on user must belong to the ora_dba group on Windows or dba group on Unix.
To add a user to the ora_dba group on Windows, net localgroup should help:
C:\> net localgroup ora_dba rene /add