Quick Answer
The answer is the portfolio management process because it provides the structured framework for IT investment prioritization, enabling organizations to systematically evaluate projects against risk and value criteria. This process directly supports the board’s objective by creating a transparent, repeatable mechanism for ranking investments, ensuring that resources are allocated to initiatives with the highest strategic return and acceptable risk levels. On the CISA exam, this concept tests your understanding of governance-level controls: while a steering committee offers oversight, the portfolio management process is the operational engine that drives prioritization. A common trap is confusing oversight bodies with execution mechanisms—remember that committees approve, but processes prioritize. For a memory tip, think of it as “the value-risk filter”: portfolio management acts like a funnel, sorting IT investments by their risk-adjusted value before they ever reach a committee for final approval.
This CISA practice question tests your understanding of governance and management of it. Read the scenario carefully and evaluate each option against the stated constraints before committing to an answer. After answering, compare your reasoning against the explanation and wrong-answer breakdown below. Once you have made your selection, read the full explanation to reinforce the concept and understand why each distractor is designed to mislead on exam day.
A multinational corporation is evaluating its IT governance structure. The board wants to ensure that IT investments are prioritized based on risk and value. Which framework component is MOST critical?
Service level agreements
Why wrong: SLAs define service expectations, not investment prioritization.
Balanced scorecard
Why wrong: Balanced scorecard measures performance but does not prioritize investments.
IT steering committee
Why wrong: The committee oversees but does not itself perform prioritization.
Portfolio management process
This process evaluates and ranks investments by risk and value.
Answer choices
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
Portfolio management process
A portfolio management process systematically evaluates and prioritizes investments based on risk and value, aligning with board objectives. Steering committee provides oversight, but portfolio management is the mechanism for prioritization.
Key principle: NAT direction and interface roles matter as much as the IP address mapping. Inside/outside designation controls which traffic is translated.
Answer analysis
For each option: why learners choose it and why it is or isn't the right answer here.
Service level agreements
Why it's wrong here
SLAs define service expectations, not investment prioritization.
Balanced scorecard
Why it's wrong here
Balanced scorecard measures performance but does not prioritize investments.
IT steering committee
Why it's wrong here
The committee oversees but does not itself perform prioritization.
Portfolio management process
Why this is correct
This process evaluates and ranks investments by risk and value.
Related concept
Static NAT maps one inside address to one outside address.
Common exam traps
NAT is not only about the public address. The inside/outside interface roles and the ACL or rule that matches traffic are just as important.
Detailed technical explanation
NAT questions usually test address translation, overload/PAT behaviour, static mappings and whether the right traffic is being translated. Read the interface direction and address terms carefully.
Key takeaway
NAT direction and interface roles matter as much as the IP address mapping. Inside/outside designation controls which traffic is translated.
Real-world example
A small business has 20 workstations on the 192.168.1.0/24 network and one public IP from its ISP. The router uses PAT (NAT overload) so all 20 devices share one public address using different source ports. NAT questions test whether you understand the four address terms and which direction each translation applies.
What to study next
Review the four NAT address types (inside local, inside global, outside local, outside global), PAT port overload, and static vs dynamic NAT use cases. Then practise related CISA NAT questions on configuration and troubleshooting.
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FAQ
Governance and Management of IT — This question tests Governance and Management of IT — Static NAT maps one inside address to one outside address..
The correct answer is: Portfolio management process — A portfolio management process systematically evaluates and prioritizes investments based on risk and value, aligning with board objectives. Steering committee provides oversight, but portfolio management is the mechanism for prioritization.
Review the four NAT address types (inside local, inside global, outside local, outside global), PAT port overload, and static vs dynamic NAT use cases. Then practise related CISA NAT questions on configuration and troubleshooting.
Static NAT maps one inside address to one outside address.
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Last reviewed: Jun 24, 2026
This CISA practice question is part of Courseiva's free ISACA certification practice question bank. Courseiva provides original exam-style practice questions with explanations, topic-based practice, mock exams, readiness tracking, and study analytics to help learners prepare for the CISA exam.
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