CGEIT Flashcards
Which of the following should be the PRIMARY consideration for an enterprise when prioritizing IT projects?
A. Results of IT performance benchmarks against competitors
B. Impact on the business due to expected project outcomes
C. Technical capability of the enterprise to execute the projects
D. Process owner expectations based on operational benefits
B. Impact on the business due to expected project outcomes
Senior management finds that too many projects are currently in-progress and all are experiencing expensive project overruns due to lack of resources. Many of the projects also appear to overlap in their objectives and expected outcomes.
Which of the following would BEST streamline the process of evaluating and selecting funding priorities?
A. Portfolio management
B. Value governance
C. Project management
D. Business case development
A. Portfolio management
The CEO of a large enterprise has announced the commencement of a major business expansion that will double the size of the organization. IT will need to support the expected demand expansion. The CIO should FIRST:
A. update the IT strategic plan to align with the decision.
B. recruit IT resources based on the expansion decision.
C. review the resource utilization matrix.
D. embed IT personnel in the business units.
A. update the IT strategic plan to align with the decision.
Portfolio management in a large enterprise BEST enables which of the following?
A. Performance management
B. Risk reduction
C. Value creation
D. Human resource optimization
C. Value creation
Which of the following BEST defines the IT investment activities an enterprise will undertake when aligning to business goals?
A. Portfolio management
B. Procurement management
C. Project management
D. Risk management
A. Portfolio management
Which of the following should be the PRIMARY consideration when implementing IT governance in a small, newly established organization?
A. Approving enterprise architecture and standards
B. Defining IT project management methodology
C. Assigning a budget for IT governance applications
D. Assigning IT roles and responsibilities
D. Assigning IT roles and responsibilities
Which of the following is the BEST method to monitor IT governance effectiveness?
A. Service level management
B. Balanced scorecard
C. Risk control self-assessment
D. Strengths, weaknesses, opportunities, and threats (SWOT) analysis
B. Balanced scorecard
An internal auditor conducts an assessment of a two-year-old IT risk management program. Which of the following findings should be of MOST concern to the
CIO?
A. Organizational responsibility for IT risk management is not clearly defined.
B. IT risk training records are not properly retained in accordance with established schedules.
C. None of the members of the IT risk management team have risk management-related certifications.
D. Only a few key risk indicators identified by the IT risk management team are being monitored and the rest will be on a phased schedule.
A. Organizational responsibility for IT risk management is not clearly defined.
An enterprise has discovered that there is significant duplication of IT investments. Which of the following would be MOST helpful in addressing this issue?
A. Establishing an IT steering committee
B. Delegating IT investment decisions to centralized IT
C. Maintaining an inventory of IT investments
D. Increasing the frequency of IT investment audits
C. Maintaining an inventory of IT investments
A regulatory audit assessed an enterprise’s main transactional application as noncompliant. In addition to fines and required corrections, an agreement was reached to implement a set of governance controls over IT. Accountability for these controls is BEST assigned to which of the following?
A. Internal audit director
B. CIO
C. The board of directors
D. Application users
B. CIO
An enterprise is planning a change in business direction. As a result, IT risk will significantly increase. Which of the following should be the CIO’s FIRST course of action?
A. Plan for the corresponding IT reorganization.
B. Recommend delaying the business change.
C. Report the risk to executive management.
D. Implement IT changes to align with the plan.
C. Report the risk to executive management
Which of the following is the GREATEST expected strategic organizational benefit from the standardization of technical platforms?
A. Reduces IT operational training costs
B. Reduces response time
C. Meets regulatory compliance requirements
D. Optimizes infrastructure investments
D. Optimizes infrastructure investments
Which of the following would be the BEST way for an enterprise to address new legal and regulatory requirements applicable to IT?
A. Benchmark how other IT organizations are treating the new requirements.
B. Adopt a zero-tolerance approach for noncompliance with regulatory matters.
C. Treat as a risk to be assessed before developing a response.
D. Use a cost-benefit analysis to determine if compliance is warranted.
C. Treat as a risk to be assessed before developing a response.
Which of the following is MOST critical for sustaining a newly implemented IT governance program?
A. Launch an enterprise-wide IT governance awareness program.
B. Designate a board representative to sponsor the IT governance program.
C. Ensure that there are IT policies, procedures, and standards in place.
D. Benchmark the program periodically against industry peers.
C. Ensure that there are IT policies, procedures, and standards in place.
An enterprise decides to accept the IT risk of a subsidiary located in another country even though it exceeds the enterprise’s risk appetite. Which of the following would be the BEST justification for this decision?
A. Local market common practices
B. Risk framework alignment
C. Technical gaps among subsidiaries
D. Compliance with local regulations
D. Compliance with local regulations
