CGEIT practice questions 1–10

1. Question 1 · 363 in bank

   Which of the following should be the PRIMARY consideration for an enterprise when prioritizing IT projects?

   • AResults of IT performance benchmarks against competitors
   • BImpact on the business due to expected project outcomes
   • CTechnical capability of the enterprise to execute the projects
   • DProcess owner expectations based on operational benefits

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   Answer: B

   Explanation

   Reference: https://www.cio.com/article/3294993/prioritizing-projects.html

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2. Question 2 · 363 in bank

   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?

   • AInternal audit director
   • BCIO
   • CThe board of directors
   • DApplication users

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   Answer: B

   Explanation

   B. CIO. As the main transactional application is an IT system, it is the responsibility of the Chief Information Officer (CIO) to ensure that governance controls are implemented effectively. The CIO is responsible for managing the enterprise's IT infrastructure, ensuring that it complies with regulations, and managing risks associated with IT systems. Therefore, accountability for the controls is best assigned to the CIO. While the internal audit director may provide oversight and ensure that controls are operating effectively, the ultimate responsibility lies with the CIO who has a more comprehensive understanding of the enterprise's IT infrastructure and systems. The board of directors provides governance oversight but is not typically responsible for day-to-day operational matters. Application users are typically responsible for using the system appropriately, but not for implementing or managing governance controls

   Source: Adapted from community discussion — Frank1480

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3. Question 3 · 363 in bank

   A regional business unit of a major financial institution is considering the use of a Software as a Service (SaaS) cloud vendor to implement a new system. Which of the following should be performed FIRST?

   • AUpdate the outsourcing policy.
   • BInvestigate on-premise software solutions.
   • CDevelop a business case.
   • DDetermine if the cloud vendor has a secure data center.

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   Answer: C

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4. Question 4 · 363 in bank

   During the implementation phase of a central ERP system, a project manager identifies a significant lack of human capabilities to support the system. The issue is reported to the project sponsor, and the sponsor sends a request for an increase in the budget to the IT steering committee. What should be the IT steering committee's FIRST action?

   • ARequire a revised business case.
   • BApprove the budget request.
   • CProvide appropriate training.
   • DRefer back to the project sponsor for resolution.

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   Answer: A

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5. Question 5 · 363 in bank

   For a large enterprise, which of the following is the BEST indicator that IT governance has a poor reputation?

   • ARegulatory noncompliance
   • BLow attendance at strategy committee meetings
   • CHigh turnover of IT staff
   • DData leakage

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   Answer: A

   Explanation

   It should be B - The strategy committee is a key governance body responsible for overseeing the development and implementation of IT strategy. Low attendance at these meetings may indicate that business leaders do not view IT governance as an important or effective function. This can be a sign that IT governance has a poor reputation and may need to be improved. Regulatory noncompliance (option A) can be a result of poor governance practices, but it is not necessarily a clear indicator of a poor reputation for IT governance. Noncompliance may result from a variety of factors, including inadequate resources, lack of understanding of regulatory requirements, or ineffective controls.

   Source: Adapted from community discussion — Frank1480

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6. Question 6 · 363 in bank

   An enterprise has committed to the implementation of a new IT governance model. The BEST way to begin this implementation is to:

   • Aprioritize how much and where to invest in IT.
   • Bidentify the role of IT in supporting the business.
   • Cdefine policies for data, applications, and organization of infrastructure.
   • Didentify IT services that currently support the enterprise's capability.

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   Answer: B

   Explanation

   Identifying the role of IT in supporting the business is a foundational step in developing an effective IT governance model. This involves understanding how IT aligns with and contributes to the overall business strategy and objectives. By clarifying the role of IT, organizations can ensure that governance efforts are directly tied to business value and priorities. Starting with a clear understanding of the role of IT in supporting the business ensures that subsequent governance decisions and policies are aligned with the broader organizational goals. This strategic alignment is crucial for the success of the IT governance model.

   Source: Adapted from community discussion — Sathish5

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7. Question 7 · 363 in bank

   Which of the following should be the PRIMARY consideration when implementing IT governance in a small, newly established organization?

   • AApproving enterprise architecture and standards
   • BDefining IT project management methodology
   • CAssigning a budget for IT governance applications
   • DAssigning IT roles and responsibilities

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   Answer: D

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8. Question 8 · 363 in bank

   Which of the following is the PRIMARY role of the CEO in IT governance?

   • AEvaluating return on investment
   • BManaging the risk governance process
   • CEstablishing enterprise strategic goals
   • DNominating IT steering committee membership

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   Answer: C

   Explanation

   Reference: https://corporatefinanceinstitute.com/resources/careers/jobs/what-is-a-ceo-chief-executive-officer/

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9. Question 9 · 363 in bank

   Which of the following is a PRIMARY responsibility of the CIO when an enterprise plans to replace its enterprise resource applications?

   • AEnsuring IT architecture requirements are considered
   • BSelecting and vetting application vendors
   • CDetermining critical success factors for related projects
   • DEstablishing software quality criteria

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   Answer: A

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10. Question 10 · 363 in bank

    When establishing a methodology for business cases, it would be MOST beneficial for an enterprise to include procedures for:

    • Aaddressing required changes outside the business case.
    • Bupdating the business case throughout its life cycle.
    • Cidentifying metrics post-implementation to measure project success.
    • Dentering the business case into the enterprise architecture.

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    Answer: D

    Explanation

    It would be most beneficial for an enterprise to include procedures for updating the business case throughout its life cycle when establishing a methodology for business cases. Business cases are dynamic documents that should reflect changes in project scope, assumptions, risks, and benefits over time. By establishing procedures for updating the business case throughout its life cycle, the enterprise ensures that the document remains relevant, accurate, and aligned with the evolving needs and priorities of the organization.

    Source: Adapted from community discussion — SuperMax

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CGEIT practice, question 1. 363 questions available.