CGEIT practice questions 101–110

1. Question 101 · 363 in bank

   In an effort to reduce operation costs, an enterprise is switching from all internally-hosted applications to a mixture of internally- and externally-hosted applications. Of the following, the risk appetite for this decision would BEST be defined by the:

   • Avendor oversight committee.
   • Bboard of directors.
   • Cchief information security officer.
   • Dchief information officer.

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   Answer: B

   Explanation

   B- The board of directors is responsible for overseeing and guiding the strategic direction of the enterprise, and as such, they are responsible for defining the risk appetite and making decisions about risk management. This decision to switch to a mixture of internally- and externally-hosted applications is a strategic decision that has implications for the overall risk profile of the enterprise, and the board of directors is best positioned to evaluate and make decisions about the level of risk that the enterprise is willing to accept.

   Source: Adapted from community discussion — Frank1480

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2. Question 102 · 363 in bank

   IT senior management has just received a survey report indicating that more than one third of the organization's key IT staff plan to retire within the next 12 months. Which of the following is the MOST important governance action to prepare for this possibility?

   • ARequest the development of a succession plan.
   • BEngage HR for recruitment of new staff.
   • CEvaluate lower-level staff as succession candidates.
   • DReview motivation drivers for key IT staff.

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   Answer: A

   Explanation

   It should be A - A succession plan is a process for identifying and developing internal staff who have the potential to fill key leadership positions in the organization. With a succession plan, the organization can identify the necessary skills and knowledge needed to ensure business continuity, and can develop or hire talent to fill these roles.

   Source: Adapted from community discussion — Frank1480

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3. Question 103 · 363 in bank

   A CEO of a large enterprise is concerned that risk events are not regularly addressed at the C-suite level unless related to emergency incidents. Which of the following is the BEST way for the CEO to ensure risk events are given sufficient time and attention?

   • AInstruct managers to take ownership for their department's identified risks.
   • BIssue performance objectives that target the elimination of enterprise risks.
   • CInclude the discussion of key enterprise risk as an agenda item at board meetings.
   • DRequire the development of a risk procedure on how to capture risks.

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   Answer: C

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4. Question 104 · 363 in bank

   An enterprise is assessing whether to utilize wearable technology. The enterprise has no prior experience with this technology and has asked the chief technology officer (CTO) to assess the impact to the enterprise. The CTO should FIRST:

   • Aprioritize wearable technology risk.
   • Bunderstand the enterprise's risk tolerance.
   • Cmap the business goals to IT risk processes.
   • Dcreate an IT risk scorecard.

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   Answer: B

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5. Question 105 · 363 in bank

   An enterprise has an overarching enterprise architecture document. The CIO is concerned that EA is not leveraged in recent IT-enabled investments. Which of the following would BEST help to address these concerns and enforce the leveraging of enterprise architecture?

   • ARequire enterprise architecture review at key milestones.
   • BPublish and train on the enterprise architecture document.
   • CForm a team to update enterprise architecture regularly.
   • DAdopt a globally-recognized enterprise architecture framework.

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   Answer: A

   Explanation

   A. Require enterprise architecture review at key milestones. Requiring enterprise architecture review at key milestones would be the best approach to address the CIO's concerns and enforce the leveraging of enterprise architecture. By requiring regular review of enterprise architecture at key milestones in IT-enabled investments, the enterprise can ensure that the architecture document is being used as intended and that it is being leveraged to guide investment decisions and ensure consistency across the enterprise.

   Source: Adapted from community discussion — Frank1480

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6. Question 106 · 363 in bank

   Once an IT governance framework has been defined, which of the following is the MOST effective approach to align IT to business objectives?

   • AAuditing the alignment of IT to business objectives regularly
   • BReviewing the return on investment of IT initiatives on a regular basis
   • CEstablishing a cross business unit committee to prioritize IT investment
   • DReporting IT investment and performance to senior management regularly

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   Answer: C

   Explanation

   Reference: https://books.google.com.pk/books?id=r2e7NmwoFGoC&pg=PA137&lpg=PA137&dq=Once+an+IT+governance+framework+has+been+defined, +which+of+the+following+is+the+MOST+effective+approach+to+align+IT+to+business +objectives&source=bl&ots=tz7jATmLvQ&sig=ACfU3U1dkpiL5L1JJLfyOORIf9gBtlFSDQ&hl=en&sa=X&ved=2ahUKEwjCqv7_- ffpAhXGN8AKHSOpDoAQ6AEwCnoECAkQAQ#v=onepage&q=Once%20an%20IT%20governance%20framework%20has%20been%20defined%2C%20which% 20of%20the%20following%20is%20the%20MOST%20effective%20approach%20to%20align%20IT%20to%20business%20objectives&f=false

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7. Question 107 · 363 in bank

   An enterprise makes an acquisition of a similar entity offering related services. A consequence of the acquisition is a reduction of IT workforce. When addressing human resource allocation, the MOST important IT governance consideration is to:

   • Amanage organizational change.
   • Bassess 7 skill sets.
   • Cmonitor team expenditures.
   • Dcross-train IT resources.

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   Answer: A

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8. Question 108 · 363 in bank

   An enterprise's board of directors has asked the CIO to implement ways to make the IT function more environmentally responsible. Which of the following should be the CIO's FIRST step to ensure continued alignment of IT needs with the requirements of the board?

   • ACreate a staff awareness education plan focused on IT environmental responsibility.
   • BIncorporate new environmentally responsible objectives into existing IT goals.
   • CAssess potential environmentally responsible IT initiatives.
   • DWrite a business case for an environmentally responsible initiative for IT.

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   Answer: B

   Explanation

   It should be C - Assessing potential environmentally responsible IT initiatives would allow the CIO to understand the current state of IT's environmental impact and identify opportunities to reduce that impact. This step would also allow the CIO to identify initiatives that align with the organization's overall environmental goals and provide a foundation for the development of a comprehensive IT environmental responsibility plan. Creating a staff awareness education plan, incorporating new environmentally responsible objectives into existing IT goals, and writing a business case for an environmentally responsible initiative are important steps that may come later in the process, but they should follow the assessment of potential initiatives. Without an understanding of the current state of IT's environmental impact and the available opportunities to improve, these other steps may not be effective in achieving the desired outcomes.

   Source: Adapted from community discussion — Frank1480

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9. Question 109 · 363 in bank

   Which of the following is the BEST way to implement effective IT risk management?

   • AMinimize the number of IT risk management decision points.
   • BAdopt risk management processes.
   • CEstablish a risk management function.
   • DAlign with business risk management processes.

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   Answer: D

   Explanation

   IT risk management should be integrated with overall business risk management. This ensures that IT risks are considered in the broader context of the organization's objectives, and there is a unified approach to managing risks across the entire business.

   Source: Adapted from community discussion — Sathish5

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10. Question 110 · 363 in bank

    Which of the following characteristics would BEST indicate that an IT process is a good candidate for outsourcing?

    • AOperational processes that are well-defined
    • BNon-strategic processes that are not documented
    • CStrategic processes that require expert professionals
    • DProcesses with higher risk to the enterprise

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    Answer: A

    Explanation

    Operational processes that are well-defined: Well-defined processes are generally easier to document, measure, and communicate. When processes are well-documented and have clear operational guidelines, it becomes easier for an outsourcing partner to understand and execute them efficiently. This clarity in operational processes is essential for successful outsourcing, as it helps in minimizing misunderstandings, improving performance, and ensuring consistent delivery of services.

    Source: Adapted from community discussion — Sathish5

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CGEIT practice, question 101. 363 questions available.