CGEIT Governance OF Enterprise IT Practice Test 5 — 15 Questions

Question 1

An organization has decentralized its IT operations, leading to fragmented governance. Which action will best restore governance oversight while retaining operational agility?

Accepted Answer

Implement a federated governance structure with central policy oversight. Federated governance models allow for central policy setting and oversight while allowing local operational autonomy.

Answer

Mandate that all business units use the same IT software stack

Answer

Standardize all IT purchasing processes across the enterprise

Answer

Centralize all IT functions and reporting lines under the CIO

Question 2

What is the primary role of the IT governance framework in an enterprise?

Accepted Answer

To align IT strategy with business strategy and deliver value. The framework provides the structure, processes, and mechanisms to ensure IT meets business goals and manages risk.

Answer

To serve as a technical manual for system administration

Answer

To automate all IT monitoring and reporting

Answer

To replace the need for IT management

Question 3

Which metric is the most effective indicator of IT governance success?

Accepted Answer

Degree of alignment between IT investments and business value realized. Value realization is the ultimate test of IT governance effectiveness.

Answer

Total cost of IT hardware and software maintenance

Answer

Number of IT projects completed on time

Answer

Number of IT security patches applied per month

Question 4

An organization adopts a new IT governance policy. Which mechanism best ensures that employees understand and follow the policy?

Accepted Answer

Establishing a formal communication and training plan regarding the policy. Policy adherence is best fostered through communication, training, and integration into performance expectations.

Answer

Including the policy in the organization's long-term strategic plan

Answer

Threatening immediate termination for any policy deviation

Answer

Encrypting the policy document on the corporate intranet

Question 5

Which action should the governance body take if a major IT risk is identified that exceeds the enterprise's risk appetite?

Accepted Answer

Formally communicate the risk to the board and propose a risk treatment plan. When risk exceeds appetite, the board or governance committee must formally accept, mitigate, or transfer the risk.

Answer

Wait for the risk to manifest before taking action

Answer

Re-evaluate the definition of risk appetite to match the current state

Answer

Request the IT department to simply delete the system causing the risk

Answer

Ignore the risk if it helps achieve a short-term profit target

Question 6

A company is planning a digital transformation. What governance action is necessary to ensure the transformation supports business strategy?

Accepted Answer

Establish a governance structure that includes business unit leaders in transformation decision-making. Linking the digital transformation initiative to clear, measurable business objectives is essential for governance.

Answer

Outsource the entire transformation to an external systems integrator

Answer

Focus primarily on reducing IT costs to fund the project

Answer

Select the latest cloud-based ERP software before defining business requirements

Question 7

Which of the following best describes 'strategic alignment' in IT governance?

Accepted Answer

Ensuring IT plans and business plans are synchronized. Strategic alignment is the process of ensuring that IT objectives and activities directly support the enterprise's mission and goals.

Answer

Requiring IT staff to wear uniforms

Answer

Purchasing the most advanced technology available

Answer

Ensuring the data center is located in a seismically safe area

Question 8

Which stakeholder is ultimately accountable for the governance of IT in an enterprise?

Accepted Answer

The Board of Directors. The Board of Directors and senior executive management are ultimately accountable for the enterprise and its governance, including IT.

Answer

The IT Steering Committee

Answer

The Internal Audit department

Answer

The Chief Information Officer (CIO)

Question 9

An organization is updating its IT governance policies. Which element must be included to ensure policy enforcement?

Accepted Answer

Defined roles, responsibilities, and accountability mechanisms. Policies must define roles, responsibilities, and clear consequences or procedures for compliance to be enforceable.

Answer

A copy of the IT department's budget spreadsheet

Answer

A detailed technical configuration guide for all servers

Answer

A list of all software vendor names used by the company

Question 10

A governance review reveals that IT decision-making is too slow to support rapid market changes. What should be done?

Accepted Answer

Delegate specific decision-making authorities to lower levels based on defined thresholds. The governance model should be reviewed to streamline decision-making without sacrificing oversight, often through delegation of authority.

Answer

Require the board of directors to approve every IT change

Answer

Remove all governance oversight requirements to speed up decisions

Answer

Stop all development until the governance process is redesigned

Question 11

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

Accepted Answer

An IT steering committee. An IT steering committee is a formal body specifically created to handle governance tasks like prioritization and alignment.

Answer

A daily backup job schedule

Answer

A database management system (DBMS) upgrade project

Answer

A list of helpdesk tickets for the week

Question 12

Which TWO of the following are key inputs for defining the IT governance strategy?

Accepted Answer

The enterprise's risk appetite. IT governance must be derived from the enterprise's strategic goals and its appetite for risk.

Answer

The number of employees in the IT department

Answer

The IT department's current server capacity

Answer

The vendor names of all installed software

Question 13

What is the primary objective of 'IT resource management' as part of IT governance?

Accepted Answer

To optimize the allocation and use of IT resources to support the business. The objective is to optimize the investment in and use of IT resources (people, hardware, software, information).

Answer

To ensure IT staff are working 40 hours per week

Answer

To eliminate the need for IT staff through automation

Answer

To buy the cheapest available technology

Question 14

Which TWO of the following are essential components of an effective IT governance framework?

Accepted Answer

Organizational structures. A governance framework must include both organizational structures and clear processes for decision-making.

Answer

A list of all IT hardware serial numbers

Answer

The daily IT operational budget

Answer

Detailed programming language standards

Question 15

Which TWO of the following are key responsibilities of an IT steering committee?

Accepted Answer

Reviewing IT project status and business value delivery. The steering committee is responsible for aligning IT priorities with business needs and monitoring performance against those goals.

Answer

Installing server software patches

Answer

Performing daily system performance monitoring

Answer

Managing the helpdesk ticket queue