Online CGEIT Questions Video

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.

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

This should be the committee’s first action, as it will help to define how the IT function supports and enables the overall business strategy and objectives of the enterprise1. An IT strategic plan is a document that outlines the vision, mission, goals, and initiatives of the IT function, as well as the resources, processes, and metrics required to achieve them1. By creating an IT strategic plan, the committee can align IT with business needs and expectations, optimize IT investments and resources, manage IT risks and opportunities, and deliver value to the stakeholders1. Creating an IT strategic plan can also help to communicate and demonstrate the role and contribution of IT to the enterprise’s success, and to gain the support and commitment of the board of directors and senior management1.

The other options are not as important or effective as creating an IT strategic plan, as they are either specific solutions or outcomes of the IT strategic plan, but not comprehensive steps. Implementing a continuous improvement plan may help to enhance the quality and efficiency of IT services and processes, but it may not address the root cause or causes of IT not sufficiently supporting the corporate objectives, which could be related to other factors, such as strategy alignment, value delivery, resource management, or risk optimization2. Specifying IT human resource performance measures may help to evaluate and improve the skills and productivity of IT staff, but it may not address the root cause or causes of IT not sufficiently supporting the corporate objectives, which could be related to other factors, such as stakeholder engagement, communication, collaboration, or feedback3. Developing a service level management plan may help to define and monitor the expectations and agreements for IT service delivery between IT providers and customers, but it may not address the root cause or causes of IT not sufficiently supporting the corporate objectives, which could be related to other factors, such as business requirements, customer satisfaction, innovation, or agility.

 A strategic HR plan is a document that drives the business forward by evaluating where the workforce is at and comparing it to future needs. It sets out the organizational goals and outlines how the HR team will help achieve them1. A strategic HR plan for IT would help to identify and address the gaps, challenges, and opportunities in the IT talent management, such as recruitment, retention, development, engagement, and succession2. A strategic HR plan for IT would also help to align the IT workforce with the IT strategy and objectives, and to ensure that the IT personnel have the skills, competencies, and motivation to support the organization’s new strategy3. A strategic HR plan for IT would also help to communicate and collaborate with the IT personnel and other stakeholders, and to foster a positive and supportive IT culture4.