CGEIT Benefits Realization Practice Test 3 — 15 Questions

Question 1

A business case includes a 'Sensitivity Analysis'. What is the purpose of this analysis in benefits realization?

Accepted Answer

To determine how changes in key assumptions affect the projected return on investment.. Sensitivity analysis in a business case tests how the projected ROI or NPV changes when key assumptions (e.g., adoption rate, cost of capital, benefit timing) are varied. Its purpose is to reveal which assumptions the business case is most sensitive to, so decision-makers understand the range of possible outcomes. This directly supports benefits realization by exposing the drivers that must be monitored and managed.

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To test the security of the application against breaches.

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To identify which stakeholders are sensitive to change.

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To measure the speed of the software.

Question 2

If an IT investment's benefits are being realized faster than planned, what is the governance board's role?

Accepted Answer

Analyze the cause of the acceleration to see if it can be replicated in other projects.. When benefits are realized faster than planned, the governance board's role is to analyze the cause of the acceleration to determine whether it can be replicated in other projects. This turns an unexpected positive into an enterprise-wide learning opportunity and improves future benefits planning. It is a monitoring-and-feedback action consistent with governance's oversight of value delivery.

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Terminate the project immediately to save remaining funds.

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Double the budget to see if benefits can be increased even further.

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Ignore the acceleration and continue with the original plan.

Question 3

Which of the following is the best way to ensure the business is prepared for a new IT solution?

Accepted Answer

Develop a comprehensive change management and training plan.. The best way to ensure the business is prepared for a new IT solution is to develop a comprehensive change management and training plan. This addresses the people and process aspects of the change, ensuring that employees understand the new solution, are trained to use it effectively, and are supported through the transition. Without proper change management and training, even the most technically sound solution can fail due to user resistance or lack of adoption. This aligns with CGEIT's focus on ensuring that IT investments deliver business value and that organizational change is managed effectively.

Answer

Increase the marketing budget for the product.

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Update the technical server hardware.

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Finalize the security policy document.

Question 4

Which TWO elements should be included in a business case report to the executive team?

Accepted Answer

The key risks and potential mitigations.. Option D is correct because a business case presented to executives must surface the key risks along with their potential mitigations, giving decision-makers the information needed to weigh the project's exposure and approve or reject it responsibly. Option E is correct because the project's ROI analysis is the core financial justification of a business case, quantifying expected benefits against costs so executives can compare the investment against alternatives and organizational priorities. The unmarked options do not belong: A (the list of all developers) is a staffing detail irrelevant to executive decision-making, B (daily project status meeting minutes) is tactical operational documentation rather than strategic justification, and C (server hardware configuration details) is a low-level technical specification that belongs in design or procurement documents, not in an executive business case.

Answer

The list of names of all developers.

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The daily project status meeting minutes.

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The server hardware configuration details.

Question 5

What is the primary difference between a Project Manager and a Benefits Owner?

Accepted Answer

The project manager is responsible for the technical output; the benefits owner is responsible for the business outcome.. The project manager owns delivery of the project's defined scope, schedule, and technical outputs within constraints, while the benefits owner is accountable for realizing the intended business outcomes and value after delivery. In CGEIT terms, this separation reflects the distinction between project execution (outputs) and benefits realization (outcomes), which is central to IT governance and value delivery.

Answer

There is no difference between these two roles.

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The project manager is responsible for the company's financial results.

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The benefits owner manages the daily development tasks.

Question 6

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.. A disbenefit analysis documents the negative consequences a project may create — cost overruns, productivity dips during transition, regulatory exposure, or cannibalised revenue — so decision-makers see a balanced, realistic picture rather than a one-sided optimistic case. This transparency supports sound investment decisions and realistic benefit forecasting. Option C captures that purpose.

Answer

To increase the project budget.

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To reduce the amount of documentation required.

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To satisfy the software vendor's requirements.

Question 7

A project delivers a new system, but the benefits are not realized due to an outdated manual process that was not updated. Where did the benefits management plan fail?

Accepted Answer

In the business change management and process alignment components.. Benefits realization depends not only on delivering the technology but also on changing the business processes and organizational behaviors that surround it. If an outdated manual process remains in place after the system goes live, the expected benefits cannot materialize — this is a failure of the business change management and process alignment components of the benefits management plan.

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In the software coding standards.

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In the technical design phase.

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In the project budget management.

Question 8

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

Accepted Answer

Customer satisfaction or Net Promoter Score (NPS).. Customer satisfaction or Net Promoter Score (NPS) (B) is a standard success metric because it captures the perceived value and user adoption of the IT investment, which ultimately drives retention and business outcomes. Return on Investment (ROI) (C) is correct because it directly compares the financial gains from the investment against its costs, expressing profitability as a percentage. Net Present Value (NPV) (D) is also correct because it discounts future cash flows to present value, showing whether the investment adds economic value after accounting for the time value of money. In contrast, total cost of software development (A) is only an input cost, not a measure of success, and the number of hours the development team worked (E) is an effort or productivity input rather than an outcome-based success metric.

Answer

Total cost of software development.

Answer

The number of hours the development team worked.

Question 9

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.. A visual dashboard that maps metrics directly to business objectives gives stakeholders continuous, role-relevant visibility into whether benefits are being realized. It translates technical and financial data into business language, enabling timely intervention when metrics drift from targets. This aligns with CGEIT's emphasis on value delivery and stakeholder communication.

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Hold a meeting only when the project fails.

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Wait until the project is finished to report anything.

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Send a 50-page technical document every month.

Question 10

An organization realizes its IT strategy is not yielding the expected business benefits. What is the most effective approach to remediate this?

Accepted Answer

Perform a strategic alignment review to identify gaps between IT capabilities and business needs.. When IT strategy fails to deliver expected business benefits, the root cause is usually misalignment between IT capabilities and business needs, so a strategic alignment review is the most effective remediation. This review identifies gaps in objectives, priorities, resources, and governance, enabling corrective action rather than blind escalation or cancellation. It restores the linkage between IT investment and business value.

Answer

Increase the frequency of software deployments.

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Cancel all current IT projects.

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Immediately hire more IT staff.

Question 11

Which TWO activities are part of the post-implementation benefits review?

Accepted Answer

Evaluating actual benefits against the business case.. Option C is correct because the post-implementation benefits review compares the benefits actually realized after go-live against the benefits forecast in the original business case, using the agreed metrics and baselines to determine whether the expected value was delivered. Option D is correct because the review also captures lessons learned about how benefits were estimated, tracked, and realized, so that future benefits planning and business cases are more accurate. Options A, B, and E are not part of this review: changing the project manager's job description is an HR/role matter, re-installing the software is a technical deployment task rather than a benefits evaluation, and deleting project documentation would destroy the evidence needed for the review and for lessons learned.

Answer

Changing the project manager's job description.

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Re-installing the software.

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Deleting the project documentation.

Question 12

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

Accepted Answer

To define the responsibilities, metrics, and timeline for achieving expected benefits.. A Benefits Management Plan defines how expected benefits from an investment will be realized, measured, and owned over time. It specifies benefit owners, success metrics, baselines, and the timeline for realization, ensuring benefits are actively managed rather than assumed. This distinguishes it from project plans that focus on deliverables and schedules.

Answer

To list the server hardware requirements.

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To secure the budget from the finance team.

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To document the project schedule.

Question 13

Why is it important to define the 'baseline' before starting an IT project?

Accepted Answer

To provide a clear point of comparison for measuring the impact of the new system.. A baseline captures the state of the relevant metrics (performance, cost, service levels, user satisfaction) before the new system is implemented, providing the reference point against which post-implementation impact is measured. Without a baseline, benefits realization claims are unverifiable because there is no 'before' to compare against. This is why baselines are a core requirement of any Benefits Realization Plan.

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To select the software vendor.

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To determine the final cost of the project.

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To ensure the team knows what to build.

Question 14

If a project is completed but the expected benefits are not realized, what is the best initial step for a CGEIT professional?

Accepted Answer

Analyze the 'Benefit Dependency Network' to identify where the link between output and outcome failed.. The Benefit Dependency Network (BDN) maps the causal chain from IT/change outputs through business outcomes to enterprise goals, showing the dependencies and enablers required to realize value. When a project delivers its outputs but benefits fail to materialize, the BDN is the diagnostic tool that reveals where the causal link broke — for example, a missing organizational change management enabler or an unaddressed dependency. Analyzing it is the correct first step because it produces evidence-based root cause insight rather than blame or premature re-investment.

Answer

Ignore the missing benefits as long as the system works.

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Start a new, more expensive project.

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Blame the technical team for poor coding.

Question 15

In the context of IT portfolio management, what does 'value optimization' mean?

Accepted Answer

Balancing investments to achieve the best possible outcomes for the organization given resource constraints.. Value optimization in IT portfolio management means balancing the mix of investments — across risk, return, cost, and strategic fit — to maximize overall organizational value given finite resources. It is not about minimizing cost or project count but about achieving the best aggregate outcome from the portfolio.

Answer

Always choosing the cheapest project.

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Automating the IT support ticket system.

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Minimizing the number of IT projects.