CGEIT Exam Dumps - Isaca Certification Questions and Answers

The best way to address the issue of duplicate purchases caused by different acquisition methods of business and IT is to establish a centralized procurement approval process. A centralized procurement approval process is a process that organizations use to obtain approval for purchases that they intend to make. The process typically involves several steps, such as identifying a need, requesting a quote, obtaining quotes, and obtaining approval from a designated authority. By centralizing the procurement approval process, the organization can avoid duplication, inconsistency, and inefficiency in purchasing decisions. A centralized procurement approval process can also help the organization to achieve the following benefits :

• Visibility and control: The organization can have a clear view of all purchase requests and transactions, and can monitor and manage the budgets, requesters, and suppliers.
• Better purchasing power: The organization can leverage its volume and history to negotiate better prices and discounts with vendors, and can establish long-term relationships with preferred suppliers.
• Standardization: The organization can implement and enforce policies and standards for data quality, security, privacy, and usage, and can create a single source of truth for purchasing information.
• Eliminates maverick spending: The organization can identify and prevent individual spending that goes against the purchasing policies or that results in duplicate or unnecessary purchases.

Therefore, establishing a centralized procurement approval process is the best way to address the issue of duplicate purchases caused by different acquisition methods of business and IT. References: Centralized vs. Decentralized Purchasing: Key Differences | Pipefy, Centralizing Procurement: What Companies Need to Consider, What is the Procurement Approval Process: Detailed Guide

Analysis of data flows and the full data life cycle should be conducted at the enterprise level, because it provides a holistic and comprehensive view of how data is created, stored, processed, used, and disposed of across the entire organization. By conducting data analysis at the enterprise level, the financial institution can ensure that the data integration from branch locations is aligned with the business objectives, needs, and expectations, and that the data quality, security, and compliance are maintained throughout the data life cycle. Data analysis at the enterprise level can also help to identify and address any data gaps, issues, or risks that may affect the regulatory reporting requirements or the performance and value of the data. According to Data Life Cycle and Data Governance What CDOs and CISOs Can Learn, “Data governance is an enterprise-wide program that requires a holistic approach to managing data throughout its life cycle.”

Applying behavioral change management is the greatest challenge to implementing IT governance, as it involves changing the culture, mindset, and behavior of the people who are affected by or involved in IT governance. IT governance is not just a technical or procedural issue, but also a human and organizational one. Therefore, it requires effective communication, education, motivation, and leadership to ensure that the stakeholders understand, accept, and support the IT governance objectives, principles, and practices. The other options are not as challenging, as they can be addressed by following established methods, frameworks, and standards for IT governance. References: : CGEIT Review Manual (Digital Version), Chapter 1: Governance of Enterprise IT, Section 1.2: IT Governance Frameworks and Standards, Subsection 1.2.1: IT Governance Frameworks and Standards Overview, Page 17 : CGEIT Review Manual (Digital Version), Chapter 1: Governance of Enterprise IT, Section 1.4: Implementing and Maintaining an IT Governance Framework, Subsection 1.4.2: Implementing an IT Governance Framework, Page 29 : CGEIT Preparation Tips and the Timelessness of Good Governance1

 A root cause analysis is the first step to identify the factors that are causing the loss of top talent and to devise appropriate solutions. A SWOT analysis, an incentive and retention program, and an aggressive talent acquisition program are possible outcomes of a root cause analysis, but they are not the first action to take. References := CGEIT Review Manual, 7th Edition, page 103.

Performance indicators are quantitative measures that can be used to evaluate the availability of a system or service. They can include metrics such as uptime, downtime, response time, availability percentage, etc. Balanced scorecard, capability maturity levels, and critical success factors are not directly related to availability objectives, but rather to strategic alignment, process improvement, and goal achievement respectively. References := CGEIT Exam Content Outline, Domain 1: Governance of Enterprise IT, Subdomain A: Governance Framework, Task 5: Establish and monitor key performance indicators (KPIs) and key goal indicators (KGIs) that are aligned with strategic objectives.

A steering committee involving business and IT is the best approach to enable effective communication to senior management regarding the project status for a strategic enterprise resource management system implementation. This is because a steering committee is a group of senior executives, stakeholders, and experts who provide strategic direction, guidance, and oversight for the project1. A steering committee can help to:

• Communicate the project vision, goals, benefits, and risks to senior management and other stakeholders1
• Monitor and review the project progress, performance, quality, and deliverables1
• Resolve any issues, conflicts, or changes that may arise during the project1
• Ensure the alignment of the project with the business strategy, objectives, and priorities1
• Provide support, resources, and sponsorship for the project1

A steering committee involving business and IT can ensure that both the functional and technical aspects of the project are well represented and communicated to senior management. This can help to avoid any misunderstandings, gaps, or misalignments between the business and IT perspectives. A steering committee can also facilitate effective communication among senior management, project team, and other stakeholders, and foster a collaborative and supportive environment for the project success2.

The other options, project management office with business and IT representatives, weekly project reports reviewed by business and IT management, and project status updates on the intranet are not as effective as a steering committee for enabling communication to senior management regarding the project status. A project management office is a centralized unit that provides standards, methodologies, tools, and support for project management3. A project management office can help to improve the efficiency and consistency of project delivery, but it does not have the authority or responsibility to communicate directly with senior management or influence their decisions3. Weekly project reports are documents that summarize the progress, performance, issues, and risks of a project in a given period4. Weekly project reports can help to keep senior management informed of the project status, but they may not be sufficient to address their concerns or expectations. Weekly project reports may also be too frequent or detailed for senior management who may prefer a higher-level or less frequent view of the project4. Project status updates on the intranet are web-based messages that provide information about the current state of a project5. Project status updates on the intranet can help to increase the visibility and transparency of the project status to senior management and other stakeholders, but they may not be effective in engaging them or soliciting their feedback. Project status updates on the intranet may also be overlooked or ignored by senior management who may have limited time or access to the intranet5. References := What is a Project Steering Committee? | Clarizen, How To Run An Effective Steering Committee Meeting - BrightWork, What Is a Project Management Office (PMO)? | Smartsheet, How To Write A Project Status Report: The Ultimate Guide, Project Status Update Email Sample : Templates and Examples

An IT skills inventory is a list of the skills, competencies, and qualifications of the IT staff in an organization. It can help to identify the current and potential capabilities of the IT workforce, as well as the gaps and needs for improvement. An IT skills inventory would be most helpful to review when determining how to allocate IT resources during a resource shortage, because it can help to match the right people with the right tasks, optimize the utilization and productivity of the existing IT staff, and prioritize the critical and urgent IT activities. The other options are not as helpful as an IT skills inventory for allocating IT resources during a resource shortage. An IT strategic plan is a document that defines the vision, mission, goals, and objectives of the IT function and how they align with the business strategy. It can help to guide the direction and scope of the IT activities and investments, but it does not provide detailed information on the availability and suitability of the IT resources. An IT organizational structure is a diagram that shows the hierarchy, roles, and responsibilities of the IT staff in an organization. It can help to clarify the reporting lines and communication channels of the IT function, but it does not reflect the skills and competencies of the IT staff. An IT skill development plan is a document that outlines the learning and training opportunities for the IT staff to enhance their skills and competencies. It can help to improve the performance and career progression of the IT staff, but it does not address the immediate needs and challenges of allocating IT resources during a resource shortage. References := What is an IT Skills Inventory?, How to Conduct an Effective Skills Gap Analysis, Resource allocation 101: How to manage your team’s resources | Planio

Aligning the program to the business requirements. IT value management is the process of planning, measuring, and optimizing the value delivered by IT to the business. Changing an IT value management program means introducing new or improved methods, tools, or practices to enhance the IT value management process. The best CSF for this change is to align the program to the business requirements, which means ensuring that the program supports the business strategy, goals, and needs, and delivers the expected benefits and outcomes to the business stakeholders12.

The other options are not as effective as aligning the program to the business requirements to use as a CSF for changing an IT value management program. Documenting the process for the board of directors’ approval is a step that may be required for changing an IT value management program, but it does not guarantee that the program will be successful or effective. Adopting the program by using an incremental approach is a strategy that may help to implement the change more smoothly and gradually, but it does not ensure that the change will meet the business expectations or needs. Implementing the program through the enterprise’s change plan is a tactic that may facilitate the coordination and communication of the change across the enterprise, but it does not ensure that the change will align with the business strategy or goals.

References: 1: IT Value Management - Compact3 2: 7 Rules for Demonstrating the Business Value of IT - Gartner

Ensuring that IT policies are aligned with organizational strategies is best achieved when the policies are developed using a top-down approach. This approach starts with strategic objectives and cascades down to operational policies, ensuring coherence and alignment with the overall direction and goals of the organization. While board approval, annual updates, and periodic audits are important for policy governance, the top-down development approach ensures that policies are inherently designed to support organizational strategies from the outset.

In the context of a resource shortage, reviewing the IT strategic plan would be most helpful for determining how to allocate IT resources. The strategic plan outlines the organization's vision, goals, and priorities, providing a clear framework for making informed decisions about resource allocation. It ensures that limited resources are directed toward initiatives that are most critical to achieving strategic objectives, thereby maximizing the impact and value of IT investments. While skills development plans, organizational structures, and skills inventories are important, they do not provide the strategic context needed for prioritizing resource allocation.

• This is because employee engagement is a key factor for the success of any change initiative, especially one that involves governance. Employee engagement refers to the degree of commitment, involvement, and ownership that employees have toward the organization and its goals1. By designing the implementation plan to engage employees across the enterprise, the organization can:

Designing the implementation plan to engage employees across the enterprise can help to ensure that the new governance initiative is understood, accepted, and adopted by all stakeholders, and that it delivers the desired outcomes and value.

The other options, staff have been trained on the new initiative, external consultants created the plan, and the plan assigns responsibility for completing milestones are not as indicative as the plan is designed to engage employees across the enterprise for the success of the implementation plan for a new governance initiative. They are more related to the execution and management of the implementation plan, rather than its design and alignment. They may also not be sufficient or effective for ensuring the success of the implementation plan, as they may not address the human and behavioral aspects of change, such as awareness, understanding, involvement, commitment, and ownership3. References := Employee Engagement: What Is It? | SHRM, How To Engage Employees In Organizational Change | Forbes, Change Management Best Practices: A Comprehensive Guide | Smartsheet

The success of an enterprise’s IT governance framework is ultimately measured by the extent to which it enables the achievement of enterprise goals and objectives. One of the key aspects of IT governance is ensuring that IT investments are aligned with business needs and deliver value to the enterprise. Therefore, a high percentage of IT investments delivering expected benefits indicates that the IT governance framework is effective and successful. References :=

• CGEIT Review Manual (Digital Version), Chapter 1: Framework for the Governance of Enterprise IT, Section 1.1: Introduction to GEIT, Subsection 1.1.2: Benefits of GEIT, Page 9
• CGEIT Review Manual (Print Version), Chapter 1: Framework for the Governance of Enterprise IT, Section 1.1: Introduction to GEIT, Subsection 1.1.2: Benefits of GEIT, Page 9
• Developing an effective IT governance framework - Wavestone1

Discretionary investments are those that are not mandatory or essential for the business, but may provide some benefits or opportunities. The IT strategy committee should evaluate whether the discretionary investment supports the corporate goals and aligns with the business strategy, as this is the most important criterion for IT governance and value creation. The technical feasibility, the business and technical scope, and the alignment with the EA are also important factors, but they are secondary to the strategic alignment and value proposition of the investment. References := ISACA, CGEIT Review Manual, 7th Edition, 2019, p. 92-93; Rethinking traditional technology budgeting processes; Discretionary Investment Management Definition, Benefits & Risks.

Data stewards are primarily responsible for applying frameworks for the governance of IT to balance the need for security controls with business requirements, as they are the custodians of the data quality, integrity, and security within an organization. Data stewards define and implement data policies, standards, and procedures, as well as monitor and report on data compliance and performance. Data stewards also collaborate with other stakeholders, such as data owners, data users, and data scientists, to ensure that the data is aligned with the business objectives and meets the regulatory and ethical requirements.

Data scientists, data analysts, and data processors are not primarily responsible for applying frameworks for the governance of IT, as they are more focused on the technical aspects of data collection, analysis, and processing. Data scientists use advanced methods and tools to extract insights and value from data. Data analysts use descriptive and inferential statistics to explore and interpret data. Data processors perform operations on data, such as entry, validation, transformation, storage, and retrieval.

References := What is a Data Steward? | Informatica; Data Governance Roles: The Ultimate Guide | Collibra; Data Governance Roles: Who Does What? | erwin; [What is IT governance? A formal way to align IT & business strategy].

because this is a role that should approve major IT purchases to help prevent conflicts of interest. An IT steering committee is a group of senior executives and board members who are responsible for overseeing and directing the IT function and ensuring that it aligns with the enterprise’s vision, mission, goals, and strategy12. An IT steering committee should approve major IT purchases, such as hardware, software, services, or projects, to ensure that they are justified, prioritized, and aligned with the business needs and expectations, and that they deliver value and performance to the enterprise12. An IT steering committee should also ensure that the IT procurement process is transparent, fair, and ethical, and that there are no conflicts of interest or undue influence from the IT vendors or suppliers1