CGEIT Governance OF Enterprise IT Practice Test 3 — 15 Questions

Question 1

What is the primary role of an IT Steering Committee?

Accepted Answer

Reviewing IT strategy and project portfolio alignment with business goals.. An IT Steering Committee is a governance body that provides strategic direction and oversight, ensuring IT initiatives align with business goals and that the IT project portfolio delivers expected value. Its primary role is reviewing and prioritizing IT strategy, investments, and project portfolios — not operational execution.

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Managing the IT staff performance reviews.

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Scheduling system maintenance windows.

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Designing the network architecture.

Question 2

What is the benefit of a standardized IT governance framework?

Accepted Answer

It provides a clear structure, common language, and consistent practices.. A standardized IT governance framework provides a clear structure (domains, processes, roles), a common language (shared terminology across business and IT), and consistent practices (repeatable, auditable processes). These benefits improve communication, decision-making, and compliance without claiming automatic cost reductions or eliminating oversight.

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It automatically reduces IT costs by 50%.

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It eliminates the need for any oversight.

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It replaces the need for IT management.

Question 3

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.. When IT shifts from centralized to decentralized, governance must adapt by defining common enterprise-wide standards (security, data, architecture) while granting business units flexibility for local decisions. This federated model preserves enterprise coherence without stifling local responsiveness. Governance does not disappear — it changes form to balance control and autonomy.

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The board should take over all local IT decisions.

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The governance framework is no longer required.

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Decentralization makes IT governance impossible.

Question 4

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 exists to align IT with enterprise strategy, so when innovation and stability conflict, the governance framework should facilitate a balanced decision based on strategic priorities. It provides the decision rights, escalation paths, and criteria to resolve the tension rather than letting either side automatically prevail. This ensures IT investments and operations support overall business objectives.

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The IT department should always win for innovation.

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The business unit should always win for stability.

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The board should ignore the conflict.

Question 5

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.. When merging organizations, governance structures should be reconciled through a gap analysis that identifies differences, overlaps, and best practices, followed by development of a unified framework. This ensures the merged entity has a coherent governance model aligned with its new strategy, risk profile, and regulatory obligations. Simply adopting one side's framework or keeping both creates inconsistency and accountability gaps.

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Adopt the framework of the company with more employees.

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Keep both frameworks as they are.

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Abandon both frameworks and start from scratch.

Question 6

In the context of the COBIT 2019 framework, what does 'Governance' mean?

Accepted Answer

Evaluation, direction, and monitoring of enterprise activities.. In COBIT 2019, governance is defined as the set of activities that ensure enterprise objectives are achieved by evaluating stakeholder needs, setting direction through prioritization and decision-making, and monitoring performance and compliance. This is captured in the governance framework's core model of Evaluate, Direct, and Monitor (EDM), which sits above the management objectives. Therefore, 'evaluation, direction, and monitoring of enterprise activities' is the precise COBIT definition.

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Execution of technical tasks.

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Managing the budget of the IT department.

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Developing software applications.

Question 7

Which document outlines the authority and responsibilities of the IT governance committee?

Accepted Answer

The committee charter.. The committee charter is the formal document that establishes the IT governance committee, defines its purpose, and explicitly outlines its authority, responsibilities, and scope of decision-making. It serves as the foundational governance instrument that empowers the committee to act on behalf of the board or executive management. Without a charter, the committee lacks formal standing and its mandate may be unclear or contested.

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The annual financial report.

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The IT project plan.

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The employee handbook.

Question 8

When should an IT governance framework be reviewed?

Accepted Answer

At regular intervals and upon significant enterprise changes.. An IT governance framework must remain aligned with the enterprise's objectives, risk appetite, and operating environment, all of which evolve over time. Regular reviews ensure the framework stays effective, while event-driven reviews triggered by significant changes (e.g., mergers, new regulations, major technology shifts) address emerging risks and opportunities. This dual approach—periodic and event-based—is a core principle in COBIT and other governance standards, ensuring continuous improvement and relevance.

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Never, once it is implemented.

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Only when an audit fails.

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Every day.

Question 9

A firm's IT audit identifies a lack of accountability for data governance. Which governance mechanism should be implemented?

Accepted Answer

Appoint data owners and establish a data governance committee.. Lack of accountability for data governance is a structural governance gap, and the correct remedy is to assign explicit ownership — appointing data owners (and ideally data stewards) and establishing a data governance committee that sets policy, resolves conflicts, and holds owners accountable. This creates named responsibility and an oversight body, directly addressing the identified deficiency.

Answer

Outsource all data storage.

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Install more data encryption tools.

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Centralize all data in one database.

Question 10

What is the primary role of the Chief Information Officer (CIO) in governance?

Accepted Answer

Ensuring IT management acts in accordance with the board's governance directives.. In governance, the board sets direction and the CIO is the executive bridge ensuring IT management executes in line with the board's governance directives, policies, and strategic intent. The CIO translates board-level expectations into IT strategy, operating models, and controls, and reports back on performance and risk. This makes Option B the correct description of the CIO's governance role — accountability for alignment and conformance, not strategy-setting or auditing.

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Setting the overall corporate strategy.

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Performing all internal IT audits.

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Solely focused on hiring technical staff.

Question 11

Which of the following is an example of an IT governance 'outcome'?

Accepted Answer

Increased alignment of IT services with business objectives.. A governance outcome is the realised result or effect of governance activity, not the activity itself. Increased alignment of IT services with business objectives is precisely the kind of enterprise-level outcome COBIT and CGEIT describe — it reflects value delivery and strategic integration. The other options are inputs, activities, or outputs, not outcomes.

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Completion of a training course.

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The purchasing of a new software license.

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A new server installation.

Question 12

Who is ultimately responsible for the governance of enterprise IT?

Accepted Answer

The Board of Directors.. Under governance frameworks like COBIT and ISO/IEC 38500, the Board of Directors holds ultimate accountability for enterprise IT governance. The board sets direction, ensures IT aligns with business strategy, monitors performance, and oversees risk. While IT management executes governance, the board retains ultimate responsibility.

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The IT Manager.

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The CEO.

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The IT Auditor.

Question 13

Which TWO of the following are primary pillars of IT Governance?

Accepted Answer

Strategic alignment. Strategic alignment (A) is a primary pillar of IT governance because it ensures IT investments and activities are directly linked to the organization's business goals and objectives, as defined in frameworks like COBIT. Value delivery (D) is also a core pillar, focusing on ensuring that IT delivers promised benefits against the agreed strategy, optimizing costs, and managing risks. These two pillars are explicitly recognized in IT governance literature (e.g., the IT Governance Institute's five focus areas: strategic alignment, value delivery, resource management, risk management, and performance measurement). Hardware procurement cost (B) is a tactical operational expense concern, not a governance pillar. Network speed optimization (C) is a technical performance activity, not a governance focus. Software development speed (E) is a delivery metric, not a primary governance pillar.

Answer

Hardware procurement cost

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Network speed optimization

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Software development speed

Question 14

A company is struggling with shadow IT. Which governance strategy is most effective?

Accepted Answer

Identify the cause of shadow IT and provide sanctioned, secure alternatives.. Shadow IT exists because business units adopt unsanctioned tools to solve real problems faster than IT can deliver approved alternatives. The most effective governance strategy is to diagnose the root cause—whether it's slow procurement, missing functionality, or poor user experience—and then provide sanctioned, secure alternatives that meet the business need. This addresses the underlying driver rather than just the symptom, reducing the incentive to bypass IT governance.

Answer

Block all unauthorized websites and applications.

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Increase the budget for the IT department.

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Fire any employee caught using non-sanctioned tools.

Question 15

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 governance must include multiple perspectives to avoid tunnel vision on any single dimension. The classic Kaplan-Norton BSC framework comprises financial, customer, internal process, and learning and growth perspectives, which together provide a holistic view of IT's contribution to business value. This balance ensures governance considers both current performance and future capability.

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Only financial metrics.

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Only technical uptime metrics.

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Only employee satisfaction metrics.