Exactprep COBIT-2019 Questions

 A principle associated with the key components of a governance framework is that key components should function independently to maintain integrity. Key components include governance components (such as structures, processes, principles, policies, etc.), governance enablers (such as people, skills, culture, information, services, etc.), and governance outcomes (such as value creation, risk optimization, resource optimization, etc.). These components should operate independently from each other to avoid conflicts of interest, bias, or undue influence. They should also have clear roles, responsibilities, authorities, and accountabilities. COBIT ensures the independence of key components by defining their relationships and interactions in a transparent and consistent manner.14 References: COBIT 2019 Framework: Introduction and Methodology, COBIT 2019 Framework: Governance System

An example of a governance system component is the compliance regulations applicable to the enterprise. The governance system components are the elements that constitute a governance system for an enterprise using COBIT 2019. The governance system components include principles enablers goals processes practices roles structures metrics etc., that enable an enterprise to govern and manage its information and technology activities effectively efficiently reliably securely etc. The compliance regulations are the laws regulations standards guidelines contracts or agreements that govern the information and technology activities of an enterprise. The compliance regulations influence the level of control and assurance that an enterprise needs to demonstrate its adherence to the applicable rules and obligations. By considering the compliance regulations as a governance system component an enterprise can ensure that its governance system is appropriate for its context and objectives that it can effectively manage the potential impacts of non-compliance on its reputation performance value stakeholder trust etc., that it can align its information and technology activities with the relevant standards guidelines regulations best practices etc., that it can meet stakeholder requirements expectations etc., 5 References: 5: COBIT 2019 Design Guide: page 47-48 : COBIT 2019 Framework: Governance System Components: page 27-28

The management objective that would be given higher priority in an enterprise’s governance system when the enterprise is very risk-averse is managed portfolio. This objective relates to ensuring that IT-enabled investments are aligned with the enterprise’s risk appetite and tolerance levels, and that they deliver optimal value and benefits. This objective also involves managing the portfolio of IT-enabled investments throughout their life cycle, from initiation to retirement. The objective is based on the COBIT 2019 Design Guide3, page 71. References: 3: COBIT 2019 Design Guide | Digital | English

An important component for an enterprise strategy archetype of cost leadership as defined by COBIT 2019 is support for the portfolio management role with an investment office. According to the COBIT 2019 Design Guide, cost leadership is one of the four generic enterprise strategy archetypes that describe how enterprises compete in their markets. Cost leadership means that an enterprise aims to offer the lowest prices for its products or services by minimizing its costs and maximizing its efficiency. One of the design factors that influence the governance system for a cost leadership strategy is the organizational structures. The COBIT 2019 Design Guide suggests that a cost leadership strategy requires a centralized and standardized organizational structure that supports the portfolio management role with an investment office. The portfolio management role is responsible for selecting, prioritizing, and balancing the IT investments that align with the enterprise strategy and objectives. The investment office is a function that assists the portfolio management role by providing financial analysis, reporting, and decision support. The support for the portfolio management role with an investment office helps to ensure that the IT investments are optimized for cost and value. References: : COBIT 2019 Design Guide: Designing an Information & Technology Governance Solution, page 48 2 : COBIT 2019 Design Guide: Designing an Information & Technology Governance Solution, page 51