2.3 IT Alignment with Business Objectives (Doshi)

Question 1

IT processes should always align with:

Answer 1

Business requirement

Question 2

What should be a prime consideration when formulating IT strategy?

Answer 2

Business objectives

Question 3

What is the first step in reviewing an organization’s IT strategic plan?

Answer 3

Review/understand the business plan

Question 4

When is information security effective?

Answer 4

When it’s in line with enterprise requirements

Question 5

What should form the basis of security requirements?

Answer 5

Enterprise requirements

Question 6

Why do IT and the business should be moving in the same direction?

Answer 6

IT plans should be aligned with an organization’s business plans to govern IT effectively

Question 7

What must the enterprise consider when formulating the IT strategy?

Answer 7

(1) business objectives
(2) risks and benefits they can bring to the business
(3) cost of current IT and
(4) whether this provides sufficient value to the business.

Question 8

In any given scenario, IT processes should be aligned

Answer 8

as per business requirement.

Question 9

Close alignment is evident when there is a

Answer 9

clear mapping, linking or cascading of IT strategy to business strategy hence ensuring that IT supports business objectives.

Question 10

In any given scenario, business processes and objectives should always be

Answer 10

driver for IT requirement. When formulating the IT strategy, the prime consideration should be business objectives.

Question 11

In any given scenario, the very first step in reviewing an organization’s IT strategic plan is

Answer 11

to review/understand the business plan.

Question 12

Information security to be effective should be

Answer 12

in line with enterprise requirements. Hence enterprise requirements should form the basis of security requirements

Question 13

To govern IT effectively, IT and business should be moving

Answer 13

in the same direction, requiring that the IT plans should be aligned with an organization’s business plans.

Question 14

In any given scenario, IT alignment with business objective can be best assured by

Answer 14

involvement of top management. Top management who are very well aware of business objectives can derive maximum benefit from information system by way of structure alignment.

Question 15

When formulating the IT strategy, the enterprise must consider:

Answer 15

(1) business objectives
(2) risks and benefits they can bring to the business;
(3) cost of current IT and whether this provides sufficient value to the business

Question 16

Corporate Governance is

Answer 16

(1) Ethical corporate behavior by directors or others charged with governance in the creation and presentation of value for all stakeholders
(2) The distribution of rights and responsibilities among different participants in the corporation, such as board, managers, shareholders and other stakeholders
(3) Establishment of rules to manage and report on business risks

Question 17

IT Governance is

Answer 17

(1) Comprises the body of issues addressed in considering how IT is applied within the enterprise.
(2) Effective enterprise governance focuses on:
– Individual and group expertise
– Experience in specific areas
(3) Key element: alignment of business and IT

Question 18

IT Governance PRIMARY concern

Answer 18

1. IT delivers value to the business

2. IT risks are managed

Question 19

In order for management to effectively monitor the compliance of processes and applications, which of the following would be the MOST ideal?

A. A central document repository
B. A knowledge management system
C. A dashboard
D. Benchmarking

Answer 19

C. A dashboard (?

Question 20

IT governance implies a system where all stakeholders provide input into the decision making process that includes:

Answer 20

(1) Board
(2) Internal customers
(3) Finance

Question 21

Best Practices for IT Governance

Answer 21

(1) Strategic alignment
(2) Value Delivery
(3) Resource Management
(4) Risk Management
(5) Performance Measurement

Question 22

In accordance with the defined role of the IS auditor, the following aspects related to IT governance need to be assessed:

Answer 22

– Alignment of the IS function with the organization’s mission, vision, values, objectives and strategies
– Achievement of performance objectives established by the business (e.g., effectiveness and efficiency) by the IS function
– Legal, environmental, information quality, fiduciary, security, and privacy requirements
– The control environment of the organization
– The inherent risks within the IS environment
– IT investment/expenditure

Question 23

The creation of an IT strategy committee is

Answer 23

an industry best practice