CGEIT practice questions 71–80

1. Question 71 · 363 in bank

   To ensure IT risk is managed in a consistent manner, it is MOST important for IT governance to establish a:

   • Arisk management reporting tool to ensure compliance.
   • Bbalanced scorecard that includes IT risks.
   • Crisk management committee to identify IT-related risks.
   • Drisk management framework.

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   Answer: D

   Explanation

   D. A risk management framework is the MOST important for IT governance to establish to ensure IT risk is managed in a consistent manner. A risk management framework provides a structured and systematic approach to identify, assess, prioritize, and manage IT risks across the organization. It outlines the roles, responsibilities, policies, and procedures for managing IT risks, and establishes a common language and understanding of the risk management process.

   Source: Adapted from community discussion — Frank1480

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2. Question 72 · 363 in bank

   A CIO is planning to implement an enterprise resource planning (ERP) system at the request of the business. Of the following, who is accountable for providing sponsorship for the IT-enabled change across the enterprise?

   • ACIO
   • BCEO
   • CIT strategy committee
   • DHuman resource director

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   Answer: B

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3. Question 73 · 363 in bank

   Which of the following would a CIO use to present the overall view of IT performance to the board of directors?

   • AMaturity model
   • BBalanced scorecard
   • CKey performance indicators (KPIs)
   • DKey risk indicators (KRIS)

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   Answer: B

   Explanation

   The balanced scorecard is a strategic management tool that provides a comprehensive view of an organization's performance from multiple perspectives, including financial, customer, internal processes, and learning and growth. It is well-suited for presenting a holistic and balanced view of IT performance to the board of directors, aligning IT activities with the overall business strategy.

   Source: Adapted from community discussion — SuperMax

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4. Question 74 · 363 in bank

   An enterprise wants to implement an IT governance framework to ensure enterprise expectations of IT are met. Which of the following would be the MOST beneficial outcome of implementing the framework?

   • AOptimization of IT performance
   • BDevelopment of IT policies
   • CCreation of an IT balanced scorecard
   • DEstablishment of key IT risk indicators

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   Answer: A

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5. Question 75 · 363 in bank

   An enterprise has a zero-tolerance policy regarding security. This policy is causing a large number of email attachments to be blocked and is a disruption to the enterprise. Which of the following should be the FIRST governance step to address this email issue?

   • AObtain senior management input based on identified risk.
   • BDirect the development of an email usage policy.
   • CRecommend business sign-off on the zero-tolerance policy.
   • DIntroduce an exception process.

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   Answer: A

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6. Question 76 · 363 in bank

   Which of the following is a CIO's BEST approach to ensure IT executes against an approved strategy?

   • ARequest IT senior leaders to collectively plan tactics for execution.
   • BAsk project management to define the IT activities for accomplishing the strategy.
   • CProvide specific direction for execution of the tasks across IT.
   • DHave IT leaders independently develop goals for their teams.

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   Answer: C

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7. Question 77 · 363 in bank

   Which of the following is the MOST important outcome of a formal, documented IT policy?

   • AAlignment with IT service management
   • BCommunication of IT management intent
   • CMapping of business objectives
   • DResource optimization for enterprise initiatives

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   Answer: C

   Explanation

   I think the answer “C. Mapping of business objectives“ is correct as the question asked for formal documented IT policy. IT policies need to map with the business strategies.

   Source: Adapted from community discussion — Ramye

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8. Question 78 · 363 in bank

   An enterprise learns that a new privacy regulation was recently published to protect customers in the event of a breach involving personally identifiable information (PII). The IT risk management team's FIRST course of action should be to:

   • Aevaluate the risk appetite for the new regulation.
   • Bdetermine if the new regulation introduces new risk.
   • Cassign a risk owner for the new regulation.
   • Ddefine the risk tolerance for the new regulation.

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   Answer: B

   Explanation

   B. determine if the new regulation introduces new risk. Before addressing risk appetite, assigning a risk owner, or defining risk tolerance, the team should first assess whether the new regulation introduces any new risks to the organization. This involves understanding the requirements of the regulation, evaluating how it impacts the organization's handling of personally identifiable information (PII), and identifying potential vulnerabilities or areas where compliance may be challenging. Once the team has a clear understanding of the new risks introduced by the regulation, they can then proceed to other risk management activities such as evaluating risk appetite, assigning a risk owner, and defining risk tolerance.

   Source: Adapted from community discussion — SuperMax

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9. Question 79 · 363 in bank

   When designing an IT governance framework, the PRIMARY consideration should be to:

   • Acomply with external monitoring standards.
   • Bensure stakeholders receive value from IT.
   • Crequire cost-benefit analysis before implementing controls.
   • Dbenchmark controls against industry best practices.

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   Answer: B

   Explanation

   After having read through the material again, I agree with the answer being C. Here's why. B is the definition for porfolio management. That is one part of IT Governance. While looking at IT Governance, when you think about the entire ambit (BSC, ValIT, KPI, Portfolio management etc), it becomes clear to me that cost-benefit is of utmost importance.

   Source: Adapted from community discussion — John_Connor

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10. Question 80 · 363 in bank

    Following a merger of two major corporations, the new strategic goal is `One business function. One IT system.` Which of the following should be the FIRST step to achieve this goal?

    • AForm a combined IT steering committee.
    • BDocument requirements for each business function.
    • CCreate a standard enterprise architecture.
    • DDefine service level agreements with each business function.

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    Answer: A

    Explanation

    A, forming a combined IT steering committee, is often seen as a preliminary step before diving into technical and operational specifics such as drafting an enterprise architecture. A combined IT steering committee could provide the necessary governance, oversight, and decision-making structure to guide the subsequent steps of the integration process, including the creation of a standard enterprise architecture. This committee would likely be responsible for aligning the IT strategy with the new strategic goal, prioritizing initiatives, and ensuring that the necessary resources are allocated to achieve the goal of One business function. One IT system.

    Source: Adapted from community discussion — Broesweelies

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CGEIT practice, question 71. 363 questions available.