CGEIT Exam Dumps - Isaca Certification Questions and Answers

Standardization of technical platforms can help optimize infrastructure investments by reducing complexity, increasing interoperability, and enabling economies of scale.

References:

• According to the CGEIT Review Manual 2022, one of the benefits of standardization is that it “optimizes infrastructure investments by reducing complexity and increasing interoperability and scalability.”
• According to the Oracle article on the EA Roadmap to Rationalize, Standardize, and Consolidate IT Assets, standardized technology "yields measurable cost savings through reduced software licenses and the elimination of redundant systems and skill sets."1

Following a re-prioritization of business objectives by management, the first step to allocate resources to IT processes should be to update the IT strategy. This ensures that the IT strategic plan remains aligned with the overall business direction and objectives. An updated IT strategy will reflect the new priorities and guide the allocation of resources to support the revised business goals effectively. Refining the human resource management plan, implementing a RACI model, and performing a maturity assessment are important actions but should follow the strategic alignment to ensure that all IT efforts and resources are directed towards achieving the updated business objectives.

The most efficient approach for using risk scenarios to evaluate a new business opportunity is to identify risk events from both bottom-up and top-down perspectives. This means that the risk identification process should consider both the specific details of the opportunity, such as the market, customer, product, service, technology, and resources involved, as well as the broader context of the opportunity, such as the strategic objectives, vision, mission, values, and culture of the organization. By using both bottom-up and top-down approaches, the risk identification process can capture a comprehensive and balanced view of the potential risks that could affect the success of the opportunity. This will help to create realistic and relevant risk scenarios that can be analyzed and evaluated for decision-making purposes. A bottom-up approach alone may miss some important risks that are related to the organization’s strategy, governance, or environment, while a top-down approach alone may overlook some specific risks that are unique to the opportunity or its implementation. Therefore, a combination of both approaches is the most efficient way to use risk scenarios for evaluating a new business opportunity. References := What is business risk? | McKinsey, How to Write Strong Risk Scenarios and Statements - ISACA, Finding your blind spots: Recognising emerging risks and opportunities

 A data steward is a functional role in data management and governance, with responsibility for ensuring that data policies and standards turn into practice within the steward’s domain. Data stewards assist the enterprise in leveraging domain data assets to full capacity1. One of the primary responsibilities of a data steward is to establish data quality requirements and metrics, which define the criteria and measures for assessing the fitness of data for its intended use. Data quality requirements and metrics are based on the business needs and expectations of the data consumers, and they cover various dimensions of data quality, such as accuracy, completeness, consistency, timeliness, validity, and reliability23. Data stewards also monitor and report on the data quality performance, identify and resolve data quality issues, and implement continuous improvement initiatives to enhance the data quality4.

The other options are not the primary responsibility of a data steward, especially at an enterprise with mature data management programs. Implementing processes for data collection and use is a responsibility of a data engineer or a data analyst, who design and execute the technical aspects of data acquisition, transformation, storage, and analysis5. Ensuring compliance with data privacy laws and regulations is a responsibility of a data protection officer or a data privacy officer, who oversee the legal and ethical aspects of data processing, security, and consent. Developing data-related policies and procedures is a responsibility of a data governance committee or a data governance officer, who set the strategic direction and objectives for data management and governance across the enterprise.

References: 1: What Is a Data Steward? Roles & Responsibilities | Zuar2 2: Data Quality Requirements: Definition & Examples - Talend 3: Data Quality Metrics: Definition & Examples - Talend 4: 6 Key Responsibilities of the Invaluable Data Steward - Dun & Bradstreet1 5: Data Engineer vs. Data Analyst: What’s The Difference? - Simplilearn : What is a Data Protection Officer (DPO)? Learn About the Role & Responsibilities | Varonis : What is Data Governance? Definition, Best Practices & More | Collibra

Upon learning that business units have been independently procuring cloud services, the IT steering committee's best course of action is to define a procurement strategy based on business unit needs. This approach ensures that cloud service procurement aligns with the enterprise's overall IT strategy and governance policies while still addressing the specific requirements of individual business units. It fosters collaboration between IT and business units, ensuring that cloud services are vetted for compliance, security, and interoperability. Requiring cancellation, including business unit leadership in the EA review board, or limiting usage to open-source solutions may address aspects of the issue but do not provide a comprehensive strategy that aligns business needs with IT governance.

 Value delivery is the best indicator of the effectiveness of IT governance in an enterprise because it measures how well IT supports the business objectives and creates value for the stakeholders. The other options are important aspects of IT governance, but they are not as comprehensive as value delivery. References := ISACA, CGEIT Review Manual, 7th Edition, Chapter 1: Framework for the Governance of Enterprise IT, Section 1.2: Principles of IT Governance, p. 9.

Organizational responsibility for IT risk management is a critical factor for the success of the program. Without clear roles and responsibilities, the program may lack accountability, coordination, communication and alignment with the business objectives. The other options are not as concerning as option A, because they do not affect the core of the program. Having risk management-related certifications is desirable, but not mandatory, for the IT risk management team. Monitoring only a few key risk indicators (KRIs) is acceptable, as long as they are relevant and meaningful for the program. Retaining IT risk training records is important, but not essential, for the program effectiveness. References := ISACA, CGEIT Review Manual, 7th Edition, Chapter 3: Benefits Realization, Section 3.2: IT Risk Management, p. 113-114.

IT strategic planning processes need to be adequately documented and communicated for several reasons, but the most important one is to promote transparency to stakeholders. Transparency means being open, honest, and accountable for the actions and decisions of the IT department. Transparency helps to build trust, credibility, and confidence among the stakeholders, such as senior management, business units, customers, suppliers, regulators, and employees1. By documenting and communicating the IT strategic planning processes, the IT department can demonstrate how it aligns its goals and objectives with the business strategy, how it prioritizes and executes its projects and initiatives, how it measures and reports its performance and outcomes, and how it manages its risks and challenges. Documenting and communicating the IT strategic planning processes also enables the IT department to solicit feedback and input from the stakeholders, and to address any issues or concerns that may arise23.

The other options are not as important as promoting transparency to stakeholders. Justifying spending on IT projects is a benefit of documenting and communicating the IT strategic planning processes, but it is not the primary reason. Ensuring other departments are aligned with the direction set by IT is a result of documenting and communicating the IT strategic planning processes, but it is not the main purpose. Informing business units of IT department achievements is a part of documenting and communicating the IT strategic planning processes, but it is not the most important reason.

References: 1: Creating an IT Strategy Communications Plan: 5 Keys to Success4 2: IT Strategy Template for a Successful Strategic Plan | Gartner1 3: 14 Ways To Document Communications Processes For Faster … - Forbes

 The frequency of IT services risk profile updates is a metric that measures how often the IT organization assesses and updates the risks associated with its services. This metric is useful to ensure that IT services meet business requirements, as it helps to identify and mitigate potential threats and vulnerabilities that could affect the availability, performance, reliability, and security of the services. A high frequency of IT services risk profile updates indicates that the IT organization is proactive and responsive to changing business needs and expectations. A low frequency of IT services risk profile updates suggests that the IT organization is reactive and complacent, and may not be aware of or prepared for emerging risks that could impact the business. References := Performance Measurement Metrics for IT Governance - ISACA, The 8 IT service management metrics that matter most

To address concerns about staff saving sensitive corporate information on publicly available cloud file storage applications, the first step should be to require staff training on data classification policies. Educating employees about the types of data classified as sensitive and the associated handling requirements helps to raise awareness and change behavior. Training should emphasize the importance of protecting sensitive information and the proper use of approved storage solutions. While creating secure storage solutions, blocking access to certain applications, and revising policies are important measures, education and awareness are fundamental first steps to ensure compliance and mitigate risks.

Assigning information risk to a department without designating an individual owner is most likely to have a negative impact on accountability for information risk ownership. This lack of individual accountability can lead to ambiguities in responsibility, making it difficult to ensure that appropriate risk management actions are taken and followed up on. When an individual owner is clearly identified, it establishes direct responsibility and accountability, improving the effectiveness of risk management practices. While the scenarios described in the other options present challenges, the absence of a specific individual owner represents a fundamental weakness in establishing clear accountability for managing information risk.

The primary role of the CEO in IT governance is establishing enterprise strategic goals. The CEO is responsible for setting the vision and strategic direction of the organization, which includes ensuring that IT governance aligns with and supports these broader objectives. While managing the risk governance process, evaluating ROI, and nominating IT steering committee membership are important, these are typically shared responsibilities or delegated to other roles within the organization. The CEO's leadership in defining the strategic goals is fundamental to guiding all aspects of IT governance and ensuring alignment with the business strategy.

Within a governance structure for risk management, the second line of defense is primarily responsible for monitoring risk and controls. This function involves overseeing the effectiveness of the first line of defense (operational management and control implementation) and ensuring that risk management practices are properly integrated into business processes. It serves as a check on the adequacy and effectiveness of risk management across the organization. While conducting audits is a function of the third line of defense (internal audit), and identifying and assessing risk is often a shared responsibility, the distinct role of the second line is to provide ongoing monitoring and oversight of risk management and control processes.

The most efficient way for an IT transformation project manager to communicate the project progress with stakeholders is to include key performance indicators (KPIs) in a monthly newsletter. This is because KPIs are measurable values that indicate how well the project is achieving its objectives and delivering value to the business1. By including KPIs in a monthly newsletter, the project manager can:

• Provide a concise, clear, and consistent overview of the project status and results to the stakeholders2
• Highlight the project achievements, challenges, and opportunities2
• Demonstrate the alignment of the project with the business strategy, goals, and priorities2
• Solicit feedback and suggestions from the stakeholders2
• Foster a sense of engagement and collaboration among the stakeholders2

A monthly newsletter is an efficient communication channel, as it can reach a large and diverse audience of stakeholders, such as senior executives, business managers, IT staff, customers, and partners. It can also be easily distributed and accessed through email or intranet. A monthly frequency is appropriate for communicating the project progress, as it can provide timely and relevant information without overwhelming or distracting the stakeholders.

The other options, establishing governance forums within project management, sharing the business case with stakeholders, and posting the project management report to the enterprise intranet site are not as efficient as including KPIs in a monthly newsletter for communicating the project progress with stakeholders. They are more related to the planning and execution of the project, rather than its communication. They may also be too formal, detailed, or infrequent for some stakeholders who may prefer a more informal, concise, or frequent view of the project progress.

Performing a business impact analysis (BIA) is the first course of action when a shortfall of IT resources is identified because it helps to assess the potential impact of the resource gap on the business processes, objectives, and goals. A BIA can also help to prioritize the criticality of the IT resources, identify the minimum acceptable levels of service, and determine the recovery strategies and resource requirements. A BIA can provide a basis for making informed decisions on how to allocate the available IT resources or acquire additional resources to close the gap.

References:

• According to ISACA’s CGEIT Review Manual 2021, one of the key activities for ensuring effective IT resource management is to "perform a business impact analysis (BIA) to identify and prioritize critical IT resources."1
• According to ISACA’s COBIT 2019 Framework, one of the governance objectives for managing IT resources is to "ensure that a BIA is performed to determine the required level of availability, continuity and security of IT services and data."2
• According to ISACA’s Business Continuity Management guide, one of the steps for developing a business continuity plan is to "conduct a BIA to identify the critical business processes and IT resources that support them."3