CGEIT Exam Dumps - Isaca Certification Questions and Answers

 Enterprise data governance is a system for defining who within an organization has authority and control over data assets and how those data assets may be used. It encompasses the people, processes, and technologies required to manage and protect data assets1. Enterprise data governance can help address the inconsistencies in data classification by establishing a common framework, standards, and policies for data quality, security, and usage across the enterprise. It can also assign roles and responsibilities for data owners, stewards, and custodians to ensure accountability and compliance234. References:

• 2: https://www.ibm.com/topics/data-governance
• 1: https://www.cio.com/article/202183/what-is-data-governance-a-best-practices-framework-for-managing-data-assets.html
• 3: https://www.sailpoint.com/identity-library/enterprise-data-governance/
• 4: https://atlan.com/enterprise-data-governance/

 A balanced scorecard is a tool that a CIO would use to present the overall view of IT performance to the board of directors, because it is a framework that translates the enterprise’s vision and strategy into a set of performance measures that cover four perspectives: financial, customer, internal business process, and learning and growth12. A balanced scorecard can help to communicate and monitor the IT strategy and goals, and align the IT activities and resources with the business needs and expectations. A balanced scorecard can also provide a balanced and comprehensive view of the IT performance and value delivery, and highlight the strengths, weaknesses, opportunities, and threats for improvement12. References := ISACA, CGEIT Review Manual, 7th Edition, 2019, page 43-44.

This should be the IT steering committee’s primary concern, as moving to an external cloud service provider may introduce new or different risks to the enterprise, such as data security, privacy, compliance, availability, performance, vendor lock-in, and service level agreements12. The IT steering committee should update the business risk profile to reflect the current and potential risks associated with the cloud service provider, and to ensure that they are aligned with the enterprise’s risk appetite and tolerance12. The IT steering committee should also monitor and manage the risks throughout the cloud service lifecycle, and implement appropriate controls and mitigation strategies to protect the enterprise’s assets and interests12. The other options are not as important as updating the business risk profile, as they are not directly related to the strategic decision to reduce operating costs for the next year. Calculating the cost of the current solution, changing the IT steering committee charter, and revising the business’s balanced scorecard are possible actions that may be taken after updating the business risk profile, based on the identified risks and their levels3.

A procurement manager should agree to purchase IT equipment from a specific vendor during a sales promotion only if the equipment adds value to the enterprise. This means that the equipment supports the business goals and objectives, meets the current and future needs of the stakeholders, and delivers benefits that outweigh the costs and risks. The procurement manager should also consider the quality, reliability, compatibility, and security of the equipment, as well as the vendor’s reputation, service level, and warranty.

The other options are not the best justification for a procurement manager to agree to purchase IT equipment from a specific vendor during a sales promotion. The IT benefit surpasses the business benefit from the purchase is not a valid justification, as it implies that the IT department’s interests are more important than the enterprise’s interests. The procurement manager should align the IT strategy with the business strategy and ensure that the IT equipment supports the enterprise value creation. The business profit surpasses the IT cost for the equipment is not a sufficient justification, as it does not account for other factors such as quality, performance, functionality, and risk of the equipment. The procurement manager should evaluate the total cost of ownership (TCO) and return on investment (ROI) of the IT equipment, not just the initial purchase price. The product is offered at the lowest price is not a convincing justification, as it does not guarantee that the equipment is suitable for the enterprise’s needs and expectations. The procurement manager should not compromise on quality, functionality, or security for a lower price.

For more information on IT procurement and value creation, you can refer to these web sources:

• IT Procurement Manager Job Description w/ Role & Responsibilities
• IT Governance: Definitions, Frameworks and Planning
• What is Governance in Procurement? Its Model
• What is IT governance? A formal way to align IT & business strategy

 The first step in aligning resource management to the enterprise’s IT strategic plan would be to perform a gap analysis. A gap analysis is a process of comparing the current state and performance of the IT resources with the desired state and expectations of the IT strategic plan. IT resources include people, processes, technology, and information that support the delivery and management of IT services and solutions1. A gap analysis can help identify the strengths, weaknesses, opportunities, and threats of the IT resources, as well as the gaps, risks, and issues that need to be addressed. A gap analysis can also provide insights and recommendations for improving and aligning the IT resources with the IT strategic plan. According to 2, one of the steps in developing an IT strategic plan is to conduct a gap analysis to assess the current capabilities and resources of the IT organization and determine the gaps between the current and future states.

The other options are not the first steps in aligning resource management to the enterprise’s IT strategic plan. Developing a responsible, accountable, consulted and informed (RACI) chart is a step that may be done after performing a gap analysis, as it involves defining and clarifying the roles and responsibilities of the IT stakeholders for each task or activity in the IT strategic plan3. Assigning appropriate roles and responsibilities is a step that may be done after performing a gap analysis, as it involves allocating and delegating the IT resources to the relevant tasks or activities in the IT strategic plan. Identifying outsourcing opportunities is a step that may be done after performing a gap analysis, as it involves evaluating and selecting external vendors or partners that can provide IT services or solutions that are not available or feasible internally4. References := 1: What are IT Resources? Definition & Examples - BMC Software13: RACI Chart: Definition & Example - Project Management34: Outsourcing: Definition & Examples - Investopedia42: How to Create an Effective IT Strategy - Smartsheet2

The best way to enable the mapping of cost to risk for selecting a disaster recovery site based on available risk data is to perform a business impact analysis (BIA). A BIA is a process of identifying and evaluating the potential effects of various disaster scenarios on the critical business functions and processes of an organization. A BIA can help estimate the financial and operational impacts of losing or disrupting the business functions and processes, such as revenue loss, customer dissatisfaction, regulatory fines, contractual penalties, reputation damage, etc. A BIA can also help determine the recovery time objectives (RTOs) and recovery point objectives (RPOs) for each business function and process, which indicate how quickly and how much data they need to be restored after a disaster. By performing a BIA, the IT steering committee can map the cost of each disaster recovery site option to the risk of each disaster scenario, and compare the trade-offs between different levels of protection and investment1.

The other options are not the best ways to enable the mapping of cost to risk for selecting a disaster recovery site. Key risk indicators (KRIs) are metrics that indicate the level of risk exposure or potential impact of a risk event on an organization. KRIs can help monitor and manage IT risks, but they do not necessarily reflect the cost of different disaster recovery site options. Scenario-based assessment is a method of analyzing and evaluating the likelihood and consequences of various risk scenarios. Scenario-based assessment can help identify and prioritize IT risks, but it does not provide a clear measure of the cost of different disaster recovery site options. Qualitative forecasting is a technique of using expert opinions, judgments, or intuition to predict future outcomes or trends. Qualitative forecasting can help estimate the future demand or growth of IT services, but it does not provide a reliable or objective basis for mapping the cost to risk of different disaster recovery site options.

 IT governance is the process of ensuring that IT supports and enables the achievement of the enterprise’s goals and objectives, and delivers value to the stakeholders1. Stakeholders are the individuals or groups that have a stake in the success or failure of IT governance, such as board members, senior management, business units, IT function, customers, suppliers, regulators, and society1. By considering stakeholders’ support, an enterprise can ensure that the IT governance framework is aligned with and driven by the stakeholders’ needs, expectations, and interests1. Stakeholders’ support can also help to facilitate the communication, collaboration, and decision-making processes among the IT governance participants, and to gain their commitment and buy-in for the IT governance implementation and improvement1.

The other options are not as important as stakeholders’ support, as they are either specific aspects or outcomes of IT governance, but not comprehensive factors. Information technology risk is the potential for negative consequences due to the use or misuse of IT within an enterprise. Information technology risk can affect the IT governance framework, but it is not the most important factor to consider, as it is only one of the many elements that influence IT governance2. Framework development cost is the amount of money and resources required to design and implement the IT governance framework. Framework development cost can affect the IT governance framework, but it is not the most important factor to consider, as it is only one of the many criteria that evaluate IT governance3. Information technology strategy is the plan that defines how the IT function supports and enables the overall business strategy and objectives of an enterprise. Information technology strategy can affect the IT governance framework, but it is not the most important factor to consider, as it is only one of the many components that constitute IT governance

Classifying information using an agreed-upon schema is the best way to ensure the integrity of data when establishing an enterprise data model. A schema is a logical structure that defines how data is organized, stored, and accessed. By using a common schema across the enterprise, data can be standardized, validated, and integrated more easily and consistently. A schema also helps to avoid data duplication, inconsistency, and ambiguity, which can compromise data integrity. References: What Is an Enterprise Data Model? [+ Examples] - HubSpot Blog

The primary goal of implementing service level agreements (SLAs) with an outsourcing vendor is to achieve operational objectives, such as improving service quality, efficiency, effectiveness, and value. SLAs are contracts that define the scope, standards, and expectations of the service delivery, as well as the roles, responsibilities, and rights of both parties. SLAs can help align the outsourcing vendor’s services with the enterprise’s strategy, goals, and needs, as well as monitor and measure their performance and outcomes. SLAs can also help manage the risks, costs, and benefits of outsourcing, as well as resolve any issues or disputes that may arise.

Gaining a competitive advantage, establishing penalties for not meeting service levels, and complying with regulatory requirements are possible benefits or outcomes of implementing SLAs with an outsourcing vendor, but they are not the primary goal. Gaining a competitive advantage is a strategic objective that may result from outsourcing some IT functions or processes to a vendor that can provide better or cheaper services than the enterprise itself or its competitors. Establishing penalties for not meeting service levels is a mechanism that can be included in SLAs to enforce accountability and compliance, as well as to compensate for any losses or damages caused by poor service delivery. Complying with regulatory requirements is a legal obligation that may affect the design and implementation of SLAs, especially when outsourcing involves sensitive or personal data or cross-border transactions.

References := 12 Service Level Agreement (SLA) best practices for IT leaders; Contents The Complete Guide To IT Service Level Agreements - IT Governance; Service level management and service level agreements - IT Governance; Service Level Agreements: A Legal and Practical Guide.

 Enterprise architecture (EA) is the most important input for managing the risk associated with creating a mobile application, because it provides a holistic view of the current and future state of the enterprise’s IT environment, including its goals, principles, standards, policies, processes, technologies, and systems. EA helps to identify the gaps, dependencies, constraints, and opportunities for the mobile application initiative, and to align it with the enterprise’s strategic objectives and business requirements. EA also helps to assess the impact of the mobile application on the existing IT infrastructure, security, performance, and compliance. By using EA as an input for IT risk management, the enterprise can ensure that the mobile application is designed, developed, deployed, and maintained in a consistent, coherent, and optimal way that minimizes the potential risks and maximizes the expected benefits. The other options are not the most important input for managing the risk associated with creating a mobile application, but rather some of the outputs or outcomes of IT risk management. An IT risk scorecard is a tool that measures and reports the performance of IT risk management activities and controls. An enterprise risk appetite is a statement that defines the level and type of risk that an enterprise is willing to accept or avoid in pursuit of its objectives. Business requirements are the specifications that describe what the mobile application should do and how it should meet the needs and expectations of the users and stakeholders. References := ISACA, CGEIT Review Manual, 27th Edition, 2020, page 15; Enterprise Architecture as Business Capabilities Architecture

 A balanced scorecard is a strategic management tool that measures and monitors the performance of an organization against its vision, mission, goals, and objectives. It uses four perspectives: financial, customer, internal process, and learning and growth. A balanced scorecard can help evaluate the effectiveness of IT governance by aligning IT activities with business strategies, assessing IT value delivery, identifying IT strengths and weaknesses, and facilitating continuous improvement. References := CGEIT Exam Content Outline, Domain 1: Governance of Enterprise IT, Subdomain B: Strategic Management, Task 3: Establish and maintain a framework for the governance of enterprise IT to enable the achievement of enterprise objectives.

According to the CGEIT certification guide, the CEO’s first course of action should be to ensure that there is a clear governance framework for outsourcing and that the roles and responsibilities for managing service providers are defined and assigned. This will help to establish accountability, oversight and control over the SaaS solution and its provider. References := CGEIT certification guide, domain 1: Governance of Enterprise IT, section 1.3: Governance Frameworks, page 17.

Data storage and transmission policies are documents that define the rules and guidelines for how data is stored, accessed, shared, and transmitted within and outside an organization. Data storage and transmission policies can help to ensure the security, privacy, compliance, and quality of the data, as well as to prevent data loss, leakage, or breach12.

If an enterprise has decided to utilize a cloud vendor for the first time to provide email as a service, eliminating in-house email capabilities, one of the IT strategic actions that should be triggered by this decision is to update and communicate data storage and transmission policies. This is because using a cloud vendor for email as a service may introduce new risks and challenges for data storage and transmission, such as data sovereignty, data ownership, data encryption, data backup, data retention, data deletion, data access control, data audit, data breach notification, etc34. Therefore, it is important to update the data storage and transmission policies to reflect the changes in the email environment and the cloud vendor’s responsibilities and obligations. It is also important to communicate the updated policies to all relevant stakeholders, such as employees, customers, partners, regulators, etc., to ensure their awareness and compliance12. References: Data Storage Policy: Definition & Best Practices. Data Transmission Policy: Definition & Best Practices. Cloud Email Security: Definition & Best Practices. Cloud Data Protection: Definition & Best Practices.

The next step for the IT organization when they receive news that the branches in a country where the impact to the enterprise is to be greatest are being sold is to adjust the ERP implementation plan and budget. This means that the IT organization should assess the implications of the sale on the ERP transformation objectives, scope, timeline, resources, costs, and risks. The IT organization should also communicate with the relevant stakeholders, such as the business units, the vendors, and the buyers, to coordinate and align the ERP activities with the sale process. The IT organization should then revise the ERP implementation plan and budget to reflect the changes and ensure that the ERP transformation delivers value to the remaining enterprise

 The best way to demonstrate that IT strategy supports a new enterprise strategy is to map IT programs to business goals. This will show how IT initiatives are aligned with and contribute to the achievement of the enterprise vision, mission, and objectives. Mapping IT programs to business goals will also help to prioritize, monitor, and evaluate the performance and value of IT investments