CGEIT Benefits Realization Practice Test 4 — 15 Questions

Question 1

Why must benefits be linked to strategic enterprise goals?

Accepted Answer

To ensure that IT projects contribute to the organization's mission and competitive advantage.. Linking benefits to strategy ensures that IT investment contributes to the overall success and direction of the business.

Answer

To make the project documentation look professional.

Answer

To keep the IT department busy.

Answer

To satisfy the project manager's requirements.

Question 2

A project is technically sound, but the business units are resisting the change. What is the most likely cause?

Accepted Answer

The benefits realization plan did not include change management or stakeholder engagement.. Resistance to change often stems from a lack of involvement in the benefits design process.

Answer

The technical documentation is missing.

Answer

The budget was too high.

Answer

The project was finished too quickly.

Question 3

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 4

A project team is using a 'Benefits-Based' approach. What would they do differently than a 'Project-Based' team?

Accepted Answer

Re-evaluate project features and deliverables against the expected benefits throughout the project lifecycle.. A benefits-based approach continuously checks if the work being done is still providing value, even if the plan changes.

Answer

Spend more time on technical documentation.

Answer

Ignore the business outcomes until the end of the project.

Answer

Focus more on meeting the project milestones on time.

Question 5

Which role is primarily accountable for ensuring the 'Business Case' for a new IT investment is accurate and justifiable?

Accepted Answer

The Business Sponsor.. The business sponsor, typically a senior business leader, owns the case and is accountable for its success.

Answer

The Lead Developer.

Answer

The IT Security Officer.

Answer

The Project Manager.

Question 6

An organization is transitioning from a traditional project-based IT budget to a Value Stream-aligned funding model. Which mechanism is most effective for ensuring that IT investments remain tethered to realized enterprise value?

Accepted Answer

Integrating Value Stream Key Performance Indicators (KPIs) into the portfolio governance cycle.. Establishing a value stream mapping process allows for the continuous monitoring of flow efficiency and value delivery, ensuring that funding is allocated to outcomes rather than just project outputs.

Answer

Automating the project portfolio management (PPM) approval workflow.

Answer

Implementing a formal Chargeback accounting system.

Answer

Moving to a strict Capital Expenditure (CAPEX) prioritization process.

Question 7

A firm identifies a significant variance between projected ROI and actual realized benefits for a major digital transformation initiative. Which action should the CGEIT practitioner prioritize to address the root cause of the benefit shortfall?

Accepted Answer

Re-evaluate the Benefits Realization Plan (BRP) against realized operational performance data.. Benefits realization management requires an iterative review of the Benefits Realization Plan against actual operational data to identify whether the assumptions made during business case development are still valid.

Answer

Implement a new project management software tool for better reporting.

Answer

Update the project charter to reflect lower performance expectations.

Answer

Conduct a post-implementation audit of IT infrastructure performance.

Question 8

When establishing a Benefits Management Plan, which stakeholder group is primarily responsible for the ultimate realization of the benefits identified in the business case?

Accepted Answer

The Business Process Owners.. While IT delivers the capability, the business owners or operational managers are the ones who must change their processes and behaviors to realize the projected benefits.

Answer

The Project Management Office (PMO) Manager.

Answer

The Chief Information Officer (CIO).

Answer

The Enterprise Architect.

Question 9

An organization is struggling with 'Shadow IT' negatively impacting their consolidated benefits realization report. Which governance approach best mitigates this risk while maintaining IT agility?

Accepted Answer

Developing a standard service catalog and internal IT brokerage model.. Establishing an 'Internal IT Marketplace' or a standard service catalog provides business units with the agility they seek while ensuring that their spending is captured within the governance framework.

Answer

Restricting network access to cloud-based SaaS providers.

Answer

Consolidating all IT budgets into a single central cost center.

Answer

Implementing a strict ban on non-approved software acquisition.

Question 10

During a portfolio review, a project is identified as having a positive Net Present Value (NPV) but a low 'Strategic Fit' score. What is the most appropriate governance action?

Accepted Answer

Conduct a re-assessment of the strategic goals to determine if the project's value proposition has been overlooked.. If a project has high financial value but low strategic fit, it should be scrutinized to see if it distracts from the core mission, potentially requiring a re-evaluation of the investment's place in the strategic portfolio.

Answer

Immediately cancel the project to preserve strategic alignment.

Answer

Transfer ownership of the project to the operations department for maintenance.

Answer

Prioritize the project to maximize immediate cash flow.

Question 11

A global company needs to compare IT investment performance across different business units using different currencies and operational models. Which metric is most suitable for normalization?

Accepted Answer

Normalized TCO relative to business unit output.. Total Cost of Ownership (TCO) normalization allows for a comparison of cost-to-benefit ratios that are not skewed by regional accounting differences or currency fluctuations.

Answer

Number of active projects per business unit.

Answer

IT spend as a percentage of total head count.

Answer

Local currency ROI calculations.

Question 12

An enterprise is adopting a 'Benefits-led' approach to IT governance. Which artifact is the most critical for documenting the causal link between IT-enabled outcomes and organizational strategy?

Accepted Answer

The Benefits Dependency Map (BDM).. A Benefits Dependency Map (or Benefit Map) explicitly links the IT investment to intermediate capabilities and final business outcomes, proving the causal chain.

Answer

The Project Charter.

Answer

The Balanced Scorecard (BSC).

Answer

The IT Strategy document.

Question 13

Which TWO of the following are considered key elements of a robust Benefits Realization Plan (BRP)?

Accepted Answer

Clear identification of benefits and their owners.. A BRP must identify the specific benefits and define the metrics/accountability for achieving those benefits to be effective.

Answer

Detailed software vendor licensing terms.

Answer

Project team contact list.

Answer

Technical architectural diagrams.

Question 14

Which THREE factors should be evaluated when prioritizing IT investments within a portfolio for maximum benefit realization?

Accepted Answer

Strategic alignment with enterprise objectives.. Portfolio prioritization considers strategic alignment, the financial return, and the risk profile (including deliverability) of the investments.

Answer

Project team experience with specific programming languages.

Answer

The age of the current hardware infrastructure.

Question 15

Which TWO activities are necessary to ensure that IT benefits are sustainably realized post-implementation?

Accepted Answer

Conducting ongoing post-implementation reviews of benefit metrics.. Sustainability requires that the business processes are permanently modified and that ongoing performance is measured to prevent regression.

Answer

Archiving all project documents to a secure repository.

Answer

Transitioning support responsibility to the maintenance team immediately.

Answer

Increasing the IT budget for the project team to add new features.