Which of the following provides an enterprise with the BEST understanding of the value proposition for employing a new cloud service?
Correct Answer: C
The value proposition of a new cloud service is best understood through a financial metric like return on investment (ROI), which quantifies the benefits relative to costs. The CGEIT Review Manual 8th Edition highlights ROI as a key tool for evaluating the value of IT investments. * Extract from CGEIT Review Manual 8th Edition (Domain 5: Benefits Realization):"Return on investment (ROI) is a critical metric for understanding the value proposition of IT initiatives, such as adopting a new cloud service. ROI compares the financial benefits of the initiative to its costs, providing a clear measure of value delivered." (Approximate reference: Domain 5, Section on Value Measurement) Return on investment (option C) provides a comprehensive view of the cloud service's financial benefits, operational improvements, and strategic value, making it the best tool for understanding the value proposition. * Why not the other options? * A. Key risk indicators (KRIs): KRIs focus on risk exposure, not value delivery. * B. Service level agreements (SLAs): SLAs define performance expectations but do not quantify overall value. * D. Customer satisfaction surveys: Surveys measure user experience, not the full financial or strategic value. References: ISACA CGEIT Review Manual 8th Edition, Domain 5: Benefits Realization, Section on ROI and Value Assessment. ISACA CGEIT Study Guide, Chapter on IT Investment Evaluation.
CGEIT Exam Question 122
A newly hired CIO has been told the enterprise has an established IT governance process, but finds it is not being followed. To address this problem, the CIO should FIRST
Correct Answer: A
The first step for the newly hired CIO to address the problem of IT governance process not being followed is to gain an understanding of the existing governance process and corporate culture. This will help the CIO to identify the root causes of the problem, such as lack of awareness, commitment, alignment, communication, or accountability. It will also help the CIO to assess the strengths and weaknesses of the current process, as well as the opportunities and threats for improvement. By understanding the existing governance process and corporate culture, the CIO can also build trust and rapport with the stakeholders, and tailor the solutions to fit the specific needs and context of the enterprise. References: CGEIT Review Manual (Digital Version) or CGEIT Review Manual (Print Version), Chapter 1: Governance of Enterprise IT, Section 1.2: IT Governance Implementation, Subsection 1.2.1: IT Governance Implementation Process, Page 27-28. What is CGEIT? A certification for seasoned IT governance professionals.
CGEIT Exam Question 123
The board and senior management of a new enterprise recently met to formalize an IT governance framework. The board of directors' FIRST step in implementing IT governance is to ensure that:
Correct Answer: C
The first step in implementing IT governance is to ensure that IT roles and responsibilities are established. This means that the board of directors should define the authority, accountability, and decision rights of the key stakeholders involved in IT governance, such as the board itself, senior management, business units, IT function, and external parties. By doing so, the board can ensure that IT governance is aligned with the enterprise governance and strategy, and that IT performance and value delivery are monitored and evaluated. Establishing IT roles and responsibilities is also a prerequisite for defining IT policies and procedures, developing a portfolio of IT-enabled investments, and implementing an IT balanced scorecard. References := CGEIT Exam Content Outline, Domain 1: Framework for the Governance of Enterprise IT1; COBIT 5: Enabling Processes, chapter 4, section 4.1.12; Improve IT Governance to Drive Business Results
CGEIT Exam Question 124
A CIO has recently been made aware of a new regulatory requirement that may affect IT-enabled business activities. Which of the following should be the CIO s FIRST step in deciding the appropriate response to the new requirement?
Correct Answer: C
The CIO's first step in deciding the appropriate response to the new regulatory requirement should be to consult with legal and risk experts to understand the requirements. This step is important because the legal and risk experts can provide the CIO with the relevant and accurate information about the new regulation, such as its scope, objectives, implications, and deadlines. The legal and risk experts can also advise the CIO on the potential risks and impacts of non-compliance, as well as the best practices and strategies for compliance . The other options are not the first step in deciding the appropriate response to the new regulatory requirement, but rather subsequent steps that depend on the outcome of the consultation with the legal and risk experts. Revising initiatives that are active to reflect the new requirements is a step that occurs after the CIO has understood the requirements and assessed their impact on the current IT-enabled business activities. Confirming there are adequate resources to mitigate compliance requirements is a step that occurs after the CIO has identified and prioritized the actions and tasks needed to achieve compliance. Consulting with the board for guidance on the new requirements is a step that occurs after the CIO has developed and proposed a feasible and effective compliance plan. References: : How to Respond to Regulatory Changes - Smartsheet : Regulatory Change Management: A Guide for Compliance Teams | LogicGate
CGEIT Exam Question 125
An enterprise has launched a digitization effort requiring a single view of customer information across all product lines. Which of the following should be done FIRST to enable this initiative?
Correct Answer: C
The foundational step in achieving a single customer view is toassess the current data standardsused across applications. Without understanding data definitions, structures, and inconsistencies, any integration or architectural modification would be premature and potentially misaligned. Future-state planning and funding depend on a clear grasp of the current data landscape and challenges. Reference: CGEIT Review Manual: Domain 2 - IT Resources (Data Management) COBIT 2019: DSS06 (Manage Business Process Controls).
