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NEW QUESTION # 44
The board of directors of an enterprise has questioned whether the business is focused on optimizing value.
The IT strategy committees' BEST action to address the board's concern is to:
- A. initiate reporting and review of key IT performance metrics.
- B. form a technology council to monitor the efficiency of project implementation.
- C. conduct a benchmark to assess IT value relative to competitors.
- D. conduct a portfolio review to assess the benefits realization of IT investments.
Answer: D
Explanation:
This is because a portfolio review is a process of evaluating the performance and value of IT investments in relation to the business objectives and strategy. A portfolio review can help to identify the alignment, contribution, and optimization of IT investments, as well as the risks, issues, and opportunities for improvement. A portfolio review can also help to communicate and demonstrate the value of IT to the board and other stakeholders, as well as to support decision-making and prioritization of IT resources.
Some of the sources that support this answer are:
1: This source explains the value of IT governance and how it can help to optimize risk and manage resources to support the organization's mission, goals, and objectives. It also discusses some of the governance enablers, such as principles, processes, and policies, that can help to align IT with the business context.
2: This source provides a research-based methodology to improve IT governance and drive business results. It suggests that conducting a portfolio review is one of the steps to redesign the governance framework and ensure that IT investments are aligned with the business strategy and deliver value.
3: This source defines IT portfolio management as a discipline that enables organizations to manage their IT investments as a collection of projects, programs, and services that contribute to the enterprise's strategic goals. It also describes some of the benefits of IT portfolio management, such as improving alignment, optimizing value, reducing risk, and enhancing transparency.
NEW QUESTION # 45
A CIO believes that a recent mission-critical IT decision by the board of directors is not in the best financial interest of all stakeholders. Which of the following is the MOST ethical course of action?
- A. Request a meeting with the board.
- B. Request an internal audit review of the board's decision.
- C. Engage an independent cost-benefit analysis.
- D. Share concerns with the legal department.
Answer: A
NEW QUESTION # 46
Gary is the project manager of the MMQ project for his company. He is working with his project team to plan the risk responses for his project. Sarah, a project team member, does not understand the process that Gary is using to plan the risk responses. Which approach is the preferred method to address project risks and the risk responses?
- A. Risks in the project should be addressed by their probability for creating risk responses.
- B. Risks in the project should be addressed by the organization's risk tolerance for creating risk responses.
- C. Risks in the project should be addressed by their impact for creating risk responses.
- D. Risks in the project should be addressed by their priority for creating risk responses.
Answer: D
NEW QUESTION # 47
Which of the following functions of HR department is liable for policy creation, policy communication, record creation, and HR information systems?
- A. Compensation and benefit
- B. Support for strategy
- C. Analysis and design for work
- D. Personnel policy
Answer: D
NEW QUESTION # 48
Which of the following is a PRIMARY responsibility of the CIO when an enterprise plans to replace its enterprise resource applications?
- A. Reviewing the IT application portfolio
- B. Ensuring IT architecture requirements are considered
- C. Evaluating and selecting application vendors
- D. Establishing software quality criteria
Answer: B
Explanation:
The CIO is the chief information officer of an enterprise, who oversees and optimizes the use of information technology (IT) to achieve the business objectives and strategy. One of the primary responsibilities of the CIO is to ensure that IT architecture requirements are considered when an enterprise plans to replace its enterprise resource applications (ERAs). ERAs are integrated software systems that support various business functions, such as finance, accounting, human resources, supply chain, etc. IT architecture requirements are the specifications and standards that define how the IT systems and platforms should be designed, developed, deployed, and maintained to support the ERAs and their users. IT architecture requirements include aspects such as performance, scalability, security, reliability, interoperability, usability, etc. The CIO should ensure that IT architecture requirements are considered when an enterprise plans to replace its ERAs, because they can affect the quality, efficiency, and effectiveness of the ERAs and their alignment with the business needs and goals. The CIO should also ensure that the IT architecture requirements are consistent with the enterprise's IT strategy and vision, and that they comply with the relevant policies, regulations, and best practices.
NEW QUESTION # 49
Which of the following is the GREATEST benefit of using a quantitative nsk assessment method?
- A. It reduces subjectivity
- B. It can be used to assess risks against non-tangible assets
- C. It helps in prioritizing risk response action plans
- D. It uses resources more efficiently
Answer: A
NEW QUESTION # 50
During qualitative risk analysis you want to define the risk urgency assessment. All of the following are indicators of risk priority except for which one?
- A. Cost of the project
- B. Risk rating
- C. Warning signs
- D. Symptoms
Answer: A
NEW QUESTION # 51
Before establishing IT key nsk indicators (KRls) which of the following should be defined FIRST?
- A. IT key performance indicators (KPIs)
- B. IT resource strategy
- C. IT risk and secunty framework
- D. IT goals and objectives
Answer: D
NEW QUESTION # 52
When an enterprise is evaluating potential IT service vendors, which of the following BEST enables a clear understanding of the vendor's capabilities that will be critical to the enterprise's strategy?
- A. Benchmarking analysis results
- B. Independent audit results
- C. Due diligence process
- D. Historical service level agreements (SLAs)
Answer: C
Explanation:
A due diligence process is the best way to enable a clear understanding of the vendor's capabilities that will be critical to the enterprise's strategy. A due diligence process is a systematic and comprehensive investigation and evaluation of the vendor's background, reputation, performance, quality, reliability, security, compliance, and suitability for the enterprise's needs and expectations. A due diligence process can help the enterprise:
Verify the vendor's claims and credentials, and validate the vendor's references and testimonials Assess the vendor's financial stability, legal status, and ethical standards Identify the vendor's strengths, weaknesses, opportunities, and threats Compare the vendor's offerings, capabilities, and prices with other vendors and market benchmarks Determine the risks and benefits of engaging with the vendor, and the mitigation and contingency plans Negotiate the terms and conditions of the contract, service level agreement (SLA), and key performance indicators (KPIs) Reference:
According to the CGEIT Review Manual 2022, "Due diligence is a comprehensive appraisal of a business undertaken by a prospective buyer or partner to establish its assets and liabilities and evaluate its commercial potential."1 According to the ISACA article on Third-Party Vendor Selection: If Done Right, It's a Win-Win2, "Once you have identified which processes can be outsourced as well as their inherent risks, you can begin performing due diligence on potential vendors. The level of due diligence should be tailored to the significance of the relationship as well as the potential risks it poses." According to the Gartner article on How to Evaluate Technology Vendors in 4 Rigorous Steps1, "Evaluating vendors requires detailed objectives, criteria, prioritization and monitoring. Here's help. When it comes to choosing a vendor, enterprise tech buyer teams can easily become bogged down in the details and documentation provided by sales teams."
NEW QUESTION # 53
Of the following, who should approve the criteria for information quality within an enterprise?
- A. Information architect
- B. Information analyst
- C. Information owner
- D. Information steward
Answer: C
NEW QUESTION # 54
You are the business analyst for your organization and are preparing to conduct stakeholder analysis. As part of this process you realize that you'll need several inputs.
Which one of the following is NOT an input you'll use for the conduct stakeholder analysis task?
- A. Business need
- B. Organizational process assets
- C. Enterprise environmental factors
- D. Enterprise architecture
Answer: C
NEW QUESTION # 55
Which of the following provides the BEST information to assess the effective alignment of IT investments?
- A. IT delivery time metrics
- B. Net present value (NPV).
- C. IT balanced scorecard
- D. Total cost of ownership (TCO)
Answer: C
Explanation:
An IT balanced scorecard is the best information source to assess the effective alignment of IT investments, because it provides a comprehensive and balanced view of the IT performance and value from four perspectives: financial, customer, internal process, and learning and growth1. An IT balanced scorecard helps to translate the IT strategy and objectives into measurable indicators that reflect the contribution of IT to the business strategy and goals2. An IT balanced scorecard also helps to monitor and evaluate the IT investments based on their benefits, costs, and risks, and to identify and address any gaps or issues in the IT alignment2. An IT balanced scorecard also helps to communicate and report the IT value and outcomes to the stakeholders, and to foster a continuous improvement culture within the organization2.
References := Implementing the IT Balanced Scorecard: Aligning IT with ... - Routledge, Strategy-Based Balanced Scorecards for Technology.
NEW QUESTION # 56
When developing an IT strategic plan that supports an enterprise's business goals which of the following should be done FIRST?
- A. Perform a business impact analysis (BIA)
- B. Analyze benchmarking data
- C. Understand the current vision
- D. Ensure that IT drives business goals
Answer: C
Explanation:
According to the ISACA CGEIT Exam Candidate Guide, one of the tasks under the domain of Strategic Alignment is to "understand the current vision and direction of the enterprise and identify how IT can best support it."1 This task should be done first when developing an IT strategic plan that supports an enterprise's business goals, because it provides the basis for aligning IT with the business strategy and priorities. By understanding the current vision and direction of the enterprise, the IT strategic plan can identify the gaps, opportunities, and challenges that need to be addressed by IT, as well as the expected outcomes and benefits that IT can deliver to the enterprise23. The other options are not the best actions to perform first in this scenario. Ensuring that IT drives business goals, analyzing benchmarking data, and performing a business impact analysis (BIA) are all useful steps or methods for developing an IT strategic plan, but they are not the starting point. They should be done after understanding the current vision and direction of the enterprise, based on the alignment and integration of IT with the business strategy and goals23. Reference:
1: https://www.isaca.org/-/media/info/cgeit/cgeit-exam-candidate-guide.pdf
2: https://www.cascade.app/blog/it-strategic-plan
3: https://www.projectmanager.com/blog/it-governance-frameworks-definitions
NEW QUESTION # 57
An organization is evaluating vendors to provide mobile device management (MDM) services. Which of the following is a KEY governance consideration for the IT steering committee?
- A. Employee-owned devices will be covered by the service.
- B. Technology-owned devices will be covered by the service
- C. The MDM services are delivered via a cloud.
- D. Service level targets align with business requirements.
Answer: D
Explanation:
A key governance consideration for the IT steering committee when evaluating vendors to provide mobile device management (MDM) services is to ensure that the service level targets align with the business requirements. Service level targets are the measurable and agreed-upon levels of performance and quality that the vendor is expected to deliver for the MDM services. These targets should reflect the business needs and expectations of the organization, such as availability, reliability, security, scalability, and functionality of the MDM services. Service level targets should also be realistic, achievable, and verifiable, and should be specified in the service level agreements (SLAs) that are part of the contract with the vendor. By ensuring that the service level targets align with the business requirements, the IT steering committee can facilitate the selection of a suitable and reliable vendor that can provide effective and efficient MDM services for the organization. References: CGEIT Exam Content Outline | ISACA1, CGEIT Review Manual (Digital Version), Mobile Device Management (MDM) - Gartner2, How to Set Service Level Targets for Your IT Support Team
NEW QUESTION # 58
Risk management strategies are PRIMARILY adopted to:
- A. achieve compliance with legal requirements.
- B. achieve acceptable residual risk levels.
- C. take necessary precautions for claims and losses.
- D. avoid risks for business and IT assets.
Answer: B
Explanation:
Risk management strategies are primarily adopted to achieve acceptable residual risk levels, which are the levels of risk that remain after applying risk response measures. Risk management strategies are the approaches or methods that an organization uses to identify, assess, and treat its IT-related risks. Risk management strategies can vary depending on the organization's risk appetite, tolerance, and capacity, as well as the nature and impact of the risks. Some common risk management strategies are: avoid, reduce, transfer, share, or accept. The other options are not as primary, as they are more related to the outcomes or objectives of risk management strategies, rather than the purpose or intention of them. References: : CGEIT Review Manual (Digital Version), Chapter 4: Risk Optimization, Section 4.3: IT Risk Management, Subsection 4.3.1: IT Risk Management Overview, Page 153 : CGEIT Review Manual (Digital Version), Chapter 4: Risk Optimization, Section 4.3: IT Risk Management, Subsection 4.3.2: IT Risk Management Process, Page 156 : CGEIT Review Manual (Digital Version), Chapter 4: Risk Optimization, Section 4.3: IT Risk Management, Subsection 4.3.3:
IT Risk Management Techniques and Tools, Page 158 : Proactive IT Risk Management in an Era of Emerging Technologies1
NEW QUESTION # 59
Which of the following is the amount of risk an enterprise is willing to except in pursuit of its mission?
- A. Vulnerability
- B. Risk Appetite
- C. Inherent Risk
- D. Threats
Answer: B
NEW QUESTION # 60
Which positive risk response best describes a teaming agreement?
- A. Venture
- B. Exploit
- C. Share
- D. Enhance
Answer: C
NEW QUESTION # 61
An enterprise recently approved a bring your own device (BYOD) policy. The IT steering committee has directed IT management to develop a communication plan to disseminate information regarding the associated technical risks. Which of the following is MOST important to include in this communication plan?
- A. Schedule and content for mandatory training
- B. A link on the corporate intranet to the BYOD policy
- C. Disciplinary actions for violation of the BYOD policy
- D. Potential exposures and impacts using common terms
Answer: D
Explanation:
A communication plan is a document that outlines the objectives, strategies, tactics, and messages for communicating with a specific audience. A communication plan for disseminating information regarding the technical risks of BYOD should include the following elements12:
The purpose and goals of the communication
The target audience and their needs and preferences
The key messages and tone of the communication
The communication channels and methods
The roles and responsibilities of the communicators
The timeline and frequency of the communication
The evaluation and feedback mechanisms
The most important element to include in this communication plan is the key messages, which should convey the potential exposures and impacts of BYOD using common terms that the audience can understand. The key messages should explain what BYOD is, why it is important, what are the benefits and challenges, what are the risks and threats, how to protect the devices and data, and what are the best practices and policies. The key messages should also be consistent, clear, concise, relevant, and engaging12.
The other options are not as important as the key messages, as they are either supporting or secondary elements of the communication plan. A link on the corporate intranet to the BYOD policy is a communication channel, which is a means of delivering the message, but not the message itself. A schedule and content for mandatory training is a communication tactic, which is a specific action or activity to implement the strategy, but not the strategy itself. Disciplinary actions for violation of the BYOD policy is a message detail, which is a specific piece of information to support the message, but not the message itself.
NEW QUESTION # 62
Which of the following roles is used to ensure that the confidentiality, integrity, and availability of the services are maintained to the levels approved on the Service Level Agreement (SLA)?
- A. The Service Level Manager
- B. The IT Security Manager
- C. The Change Manager
- D. The Configuration Manager
Answer: B
Explanation:
Section: Volume B
NEW QUESTION # 63
Which of the following BEST supports the implementation of an effective data classification policy?
- A. Implementation of data loss prevention (DLP) tools
- B. Classification policy approval by the board
- C. Clear guidelines adopted by the business
- D. Monitoring with key performance indicators (KPIs)
Answer: C
NEW QUESTION # 64
Which of the following frameworks describes a standard for processes within business information management at the strategy, management and operations level?
- A. COBIT
- B. Val IT
- C. TOGAF
- D. BISL
Answer: D
Explanation:
Section: Volume A
Explanation/Reference:
NEW QUESTION # 65
Which of the following concepts is the business practice of developing and implementing comprehensive risk management and security practices for a firm's entire value chain?
- A. TSM
- B. BSC
- C. TOGAF
- D. TQM
Answer: A
NEW QUESTION # 66
Which of the following would be the BEST way for an enterprise to address new legal and regulatory requirements applicable to IT?
- A. Use a cost-benefit analysis to determine if compliance is warranted.
- B. Adopt a zero-tolerance approach for noncompliance with regulatory matters.
- C. Benchmark how other IT organizations are treating the new requirements.
- D. Treat as a risk to be assessed before developing a response.
Answer: D
Explanation:
The best way for an enterprise to address new legal and regulatory requirements applicable to IT is to treat them as a risk to be assessed before developing a response. This approach involves identifying the potential impact of the new requirements on the organization, evaluating the likelihood and consequences of non-compliance, and then developing a prioritized response plan based on this risk assessment. This method ensures a measured and proportional response that aligns with the organization's risk appetite and strategic objectives. While benchmarking, adopting a zero-tolerance approach, and using cost-benefit analysis are useful, they should be part of a broader risk-based strategy to address compliance effectively.
NEW QUESTION # 67
Senior management is reviewing the results of a recent security incident with significant business impact.
Which of the following findings should be of GREATEST concern?
- A. Response efforts had to be outsourced due to insufficient internal resources.
- B. The incident was not logged in the ticketing system.
- C. Significant gaps are present in the incident documentation.
- D. Response decisions were made without consulting the appropriate authority.
Answer: C
NEW QUESTION # 68
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