CGEIT Benefits Realization — 10 Questions

Question 1

Which of the following is the most important component of a benefits realization report presented to the board?

Accepted Answer

Calculate the project internal rate of return (IRR).. The board focuses on the strategic alignment and the actual realization of value compared to the initial business case.

Answer

Determine the technical infrastructure requirements.

Answer

The technical specifications of the new infrastructure.

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Assign technical staff to the project.

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Identify the project stakeholders.

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Detailed list of all software bugs encountered during development.

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A complete breakdown of the project team members' hours.

Question 2

When an IT project has multiple stakeholders, how should benefits be documented?

Accepted Answer

Define the benefit.. Documenting benefits by stakeholder group ensures each party understands the value relevant to their department.

Answer

As a single aggregate number for the entire organization.

Answer

Only by the IT department, as they manage the system.

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Draft the user manual.

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In a narrative format that focuses on technical project milestones.

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Design the technical architecture.

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Procure the hardware.

Question 3

During a portfolio review, it is discovered that a program's benefits are being realized, but the project costs have exceeded the contingency fund by 20%. What is the best immediate action for the benefits owner?

Accepted Answer

Conduct a re-evaluation of the business case to determine if the expected ROI is still valid.. The benefits owner must determine if the increased costs impact the overall net value (ROI) to decide whether to continue the investment.

Answer

Immediately terminate the project to prevent further cost overruns.

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Ignore the cost overrun as long as the project delivery schedule remains on track.

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Request an additional budget from the steering committee without analysis.

Question 4

A project manager is calculating the Return on Investment (ROI) for an IT infrastructure upgrade. Which factor must be included in the 'Investment Cost' component of the ROI calculation?

Accepted Answer

The training costs for staff to operate the new infrastructure.. Total Cost of Ownership (TCO) includes not just acquisition, but implementation and operational overheads.

Answer

The depreciation schedule of existing legacy assets.

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The projected increase in annual sales revenue.

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The market value of competitor technology.

Question 5

A company is shifting from a project-based to a value-based management model. Which of the following best describes an 'outcome' versus an 'output'?

Accepted Answer

An output is the automated reporting tool; an outcome is the reduction in manual data entry time.. An output is what is delivered (the product), whereas an outcome is the resulting state or benefit to the organization.

Answer

An output is a strategic goal; an outcome is a project milestone.

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An output is the increased sales revenue; an outcome is the new CRM software.

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An output and an outcome are essentially the same and can be used interchangeably.

Question 6

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.

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To authorize the release of funds from the enterprise budget.

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To audit the project documentation for compliance with PMBOK standards.

Question 7

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.

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The total volume of code written.

Question 8

What is the primary purpose of a Post-Implementation Review (PIR) in the context of benefits realization?

Accepted Answer

To verify if the expected benefits have been achieved and identify lessons learned.. The PIR confirms whether the benefits identified in the business case were actually achieved after the project is complete.

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To ensure the system meets all security standards.

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To finalize the payment for external contractors.

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To evaluate the performance of the project manager.

Question 9

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.

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To ensure software development complies with vendor licensing requirements.

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To automate the generation of project status reports for stakeholders.

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To allocate budget for ongoing maintenance and support costs.

Question 10

Which TWO of the following are common challenges in tracking benefits?

Accepted Answer

The long time lag between project implementation and benefit realization.. Benefits are often difficult to isolate from other business factors and may be delayed.

Answer

The high cost of cloud hosting services.

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The requirement to have a steering committee.

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The lack of software tools to track project milestones.