CGEIT Governance OF Enterprise IT Practice Test 2 — 15 Questions

Question 1

A firm identifies that its IT governance framework is too burdensome for its agile, small-team structure. What is the most appropriate governance action?

Accepted Answer

Tailor the governance system by adjusting design factors.. COBIT 2019 suggests 'design factors' like enterprise size and agile development methodology to tailor the framework to be efficient and non-burdensome.

Answer

Standardize all processes across the company.

Answer

Ignore the framework until the company grows.

Answer

Appoint more auditors to monitor compliance.

Question 2

What is the primary indicator that IT strategic alignment is successful?

Accepted Answer

Business goals are met through the effective use of IT.. Successful alignment is visible when IT investments and operations directly support the achievement of the enterprise's strategic goals.

Answer

IT cost as a percentage of revenue is minimized.

Answer

The IT department is fully staffed.

Answer

IT projects are completed on time.

Question 3

When establishing an IT governance committee, what is a key requirement for its effectiveness?

Accepted Answer

It must include representation from both business and IT.. A committee must have representation from both business and IT to ensure that decisions are aligned with business priorities and that IT has a voice.

Answer

It must be composed only of technical experts.

Answer

It must be chaired by the CIO.

Answer

It must meet at least once a week.

Question 4

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 5

Which role is generally responsible for implementing the governance policies defined by the board?

Accepted Answer

Executive Management.. Management, led by the executive suite, is responsible for executing the strategies and policies set by the board.

Answer

Internal Audit.

Answer

The Board of Directors.

Answer

The IT support team.

Question 6

How should IT governance ensure that IT-related risks are identified and managed?

Accepted Answer

By incorporating risk management into the enterprise's IT governance policy.. Governance frameworks integrate risk management by setting policies and requiring management to establish risk assessment processes.

Answer

By eliminating IT risk entirely.

Answer

By outsourcing all IT operations to a third party.

Answer

By performing all risk assessments at the board level.

Question 7

A company's IT governance structure is being challenged because IT costs are inconsistent. What is the most appropriate governance step to take?

Accepted Answer

Review and align IT investment prioritization with business outcomes.. The steering committee should review the IT investment portfolio and budget allocation to ensure consistency with strategic business priorities.

Answer

Arbitrarily cap all IT spending.

Answer

Increase the IT department's headcount.

Answer

Switch to a cloud-only model.

Question 8

Which factor most significantly influences the design of an IT governance system?

Accepted Answer

The organization's strategy and business goals.. Enterprise strategy is the primary driver for IT governance, as the framework must support the business objectives.

Answer

The specific software vendors used.

Answer

The current IT hardware lifecycle.

Answer

The number of employees in the IT department.

Question 9

An organization wants to improve its IT governance maturity. What is the most important first step?

Accepted Answer

Assessing the current state of governance maturity.. Assessing the current state (maturity) of the governance system is the essential first step before setting goals for improvement.

Answer

Buying an expensive IT governance tool.

Answer

Implementing all COBIT objectives at once.

Answer

Changing the IT leadership team.

Question 10

Which of the following best defines IT Governance?

Accepted Answer

A structure of relationships and processes to direct and control the enterprise.. IT governance ensures that IT aligns with business goals, delivers value, manages risk, and optimizes resources.

Answer

Purchasing new software for the company.

Answer

Managing daily IT support tickets.

Answer

Updating antivirus software across the network.

Question 11

What is the primary role of an IT Steering Committee?

Accepted Answer

Reviewing IT strategy and project portfolio alignment with business goals.. The steering committee aligns IT with business strategy and oversees major investments and project priorities.

Answer

Managing the IT staff performance reviews.

Answer

Scheduling system maintenance windows.

Answer

Designing the network architecture.

Question 12

What is the benefit of a standardized IT governance framework?

Accepted Answer

It provides a clear structure, common language, and consistent practices.. Standardization provides a common language, consistent processes, and clear accountability across the enterprise.

Answer

It automatically reduces IT costs by 50%.

Answer

It eliminates the need for any oversight.

Answer

It replaces the need for IT management.

Question 13

A corporation is shifting from a centralized to a decentralized IT structure. How does this affect governance?

Accepted Answer

Governance must define common standards while allowing local decision-making flexibility.. Decentralization shifts control, requiring a governance framework that emphasizes shared standards and monitoring across multiple business units.

Answer

The board should take over all local IT decisions.

Answer

The governance framework is no longer required.

Answer

Decentralization makes IT governance impossible.

Question 14

A conflict arises between the IT department's desire for innovation and the business unit's desire for operational stability. What is the role of governance?

Accepted Answer

The governance framework should facilitate a balance based on strategic priorities.. Governance provides the framework (via the IT steering committee) to balance these competing priorities based on the organization's risk appetite and strategic goals.

Answer

The IT department should always win for innovation.

Answer

The business unit should always win for stability.

Answer

The board should ignore the conflict.

Question 15

An organization is merging with another company. How should the governance structures be reconciled?

Accepted Answer

Conduct a gap analysis and develop a unified governance framework.. The governance team must perform a gap analysis of both frameworks and synthesize them to support the new, combined organizational strategy.

Answer

Adopt the framework of the company with more employees.

Answer

Keep both frameworks as they are.

Answer

Abandon both frameworks and start from scratch.