CGEIT Practice Test 1 — 25 Questions

Question 1

Which TWO factors are essential for a successful benefits realization culture?

Accepted Answer

A focus on learning from both successes and failures.. A culture of benefits realization requires accountability and a focus on measurement rather than blame.

Answer

Requiring all employees to learn programming.

Answer

Frequent updates to the technical architecture.

Answer

Reducing the number of board meetings.

Question 2

Which of the following describes the 'Benefit Dependency Network' (BDN)?

Accepted Answer

A visualization of how investments and changes lead to business benefits.. The BDN maps the relationships between IT deliverables, business changes, and final strategic outcomes.

Answer

A network diagram of project team communication channels.

Answer

A list of all server interdependencies.

Answer

A schedule of hardware maintenance updates.

Question 3

When assessing the feasibility of a project, why is it necessary to evaluate the 'risk of benefit realization'?

Accepted Answer

To determine if the expected value can realistically be achieved under current conditions.. If the risk of not achieving the benefit is too high, the project might not be a sound investment regardless of its cost.

Answer

To ensure the project follows the vendor's best practices.

Answer

To ensure the technical project has no bugs.

Answer

To reduce the number of stakeholders involved.

Question 4

What is the most effective way to communicate benefit realization status to stakeholders?

Accepted Answer

Use a visual dashboard that maps metrics to business objectives.. Dashboards provide visual, easy-to-understand status updates relevant to stakeholders.

Answer

Hold a meeting only when the project fails.

Answer

Wait until the project is finished to report anything.

Answer

Send a 50-page technical document every month.

Question 5

Which THREE items are necessary to calculate the 'Total Cost of Ownership' (TCO) for a new IT project?

Accepted Answer

Project staff salaries during the development phase.. TCO encompasses all costs, including acquisition, implementation, and ongoing operational support.

Answer

The number of users who will be trained.

Answer

The predicted revenue increase.

Question 6

What is the primary objective of a 'Benefits Management Plan'?

Accepted Answer

To define the responsibilities, metrics, and timeline for achieving expected benefits.. The plan outlines how the benefits will be measured, tracked, and realized throughout the project lifecycle.

Answer

To list the server hardware requirements.

Answer

To secure the budget from the finance team.

Answer

To document the project schedule.

Question 7

A company is integrating a new AI technology. How should the governance structure oversee this risk?

Accepted Answer

Update governance policies and risk thresholds for new technology.. Emerging technology requires the IT steering committee to review the risk appetite and update governance policies to manage new types of ethical and operational risks.

Answer

Mandate that no new AI technology is used.

Answer

Allow the IT team to proceed without oversight.

Answer

Focus solely on the cost of the technology.

Question 8

Which key element should a balanced scorecard (BSC) for IT governance include?

Accepted Answer

Financial, customer, internal process, and learning and growth perspectives.. A balanced scorecard for IT should measure performance across financial, customer, internal process, and learning/growth perspectives.

Answer

Only financial metrics.

Answer

Only technical uptime metrics.

Answer

Only employee satisfaction metrics.

Question 9

Which TWO stakeholders are essential for successful IT governance?

Accepted Answer

Executive Management. The Board of Directors and the Executive Management are the essential top-level stakeholders for governance.

Answer

Local IT repair technicians

Answer

Delivery drivers

Answer

External janitorial staff

Question 10

Which THREE factors should be considered when assessing the 'Value' of an IT investment in a portfolio?

Accepted Answer

Financial benefits such as cost reduction or revenue growth.. Value is derived from strategic fit, financial return, and the risk of not proceeding.

Answer

The number of vendors involved in the project.

Answer

The total volume of code written.

Question 11

When implementing a benefits management plan, what is the primary role of the 'Benefits Owner'?

Accepted Answer

To ensure that the business operational changes required to achieve the benefits are implemented.. The benefits owner is accountable for ensuring that the business changes necessary to realize the value actually take place.

Answer

To manage the technical development life cycle of the software.

Answer

To authorize the release of funds from the enterprise budget.

Answer

To audit the project documentation for compliance with PMBOK standards.

Question 12

Why should IT projects include a 'disbenefit' analysis in their business case?

Accepted Answer

To provide a transparent and realistic view of the project's impact.. Ignoring disbenefits makes the business case look artificially positive and leads to poor decision-making.

Answer

To increase the project budget.

Answer

To reduce the amount of documentation required.

Answer

To satisfy the software vendor's requirements.

Question 13

Why should benefit realization planning start at the inception of an IT investment?

Accepted Answer

To ensure that the desired business outcomes are clearly defined and measurable.. Early planning ensures that the project is designed with the end-state business objectives in mind.

Answer

To secure the budget before the project is approved.

Answer

To identify technical risks in the software architecture.

Answer

To ensure that the project team is selected correctly.

Question 14

Which THREE metrics are commonly used to measure the success of an IT investment?

Accepted Answer

Customer satisfaction or Net Promoter Score (NPS).. Success is measured by financial returns, operational efficiency, and strategic outcomes.

Answer

Total cost of software development.

Answer

The number of hours the development team worked.

Question 15

Which THREE items should be included in a benefit realization plan?

Accepted Answer

The specific metrics to measure the benefit.. A benefits plan needs accountability, measurable metrics, and timing/frequency of review.

Answer

The list of technical software vulnerabilities.

Answer

The server hardware specifications.

Question 16

In the context of benefits realization, what does the term 'disbenefit' mean?

Accepted Answer

A negative consequence of the IT investment.. A disbenefit is an adverse or negative impact resulting from the implementation of a project.

Answer

A cost that was not included in the original budget.

Answer

A benefit that was planned but not achieved.

Answer

The depreciation of hardware assets over time.

Question 17

Which document is the primary source for defining the success criteria of an IT project?

Accepted Answer

The business case.. The business case provides the justification and the defined expected benefits for the project.

Answer

The vendor contract.

Answer

The technical design document.

Answer

The project charter.

Question 18

Which TWO of the following steps are critical when performing a benefits-based business case review?

Accepted Answer

Comparing current project performance against the business case.. Reviewing requires checking against the plan and assessing the continued relevance of the business case.

Answer

Updating the project team's contact list.

Answer

Checking if the project complies with the latest IT security standards.

Answer

Reviewing the technical code repository.

Question 19

When benefits are reported as 'percentage of goal achieved', what is a potential risk?

Accepted Answer

Percentages may hide the underlying absolute values and total costs.. Percentages can mask the absolute scale of the benefit or the cost incurred to achieve it.

Answer

Percentages are too difficult for stakeholders to understand.

Answer

Percentages cannot be calculated for IT projects.

Answer

Percentages are always accurate.

Question 20

An organization is establishing a benefits realization framework. What is the primary purpose of defining key performance indicators (KPIs) at the start of an IT investment?

Accepted Answer

To provide a baseline for measuring the achievement of expected business outcomes.. Defining KPIs early allows for the establishment of baseline performance data, which is essential to measure the delta created by the investment.

Answer

To ensure software development complies with vendor licensing requirements.

Answer

To automate the generation of project status reports for stakeholders.

Answer

To allocate budget for ongoing maintenance and support costs.