CGEIT Exam Dumps - Certified in the Governance of Enterprise IT Exam

A cost-benefit analysis is a process that compares the costs and benefits of a decision or an action, such as outsourcing non-core IT processes. A cost-benefit analysis can help the enterprise evaluate the feasibility, profitability, and sustainability of outsourcing, as well as identify the potential risks and opportunities. A cost-benefit analysis can also help the enterprise determine the optimal level and scope of outsourcing, and select the most suitable outsourcing partner. A cost-benefit analysis should be the first step before issuing a formal request for proposal, establishing service level metrics, or updating resource allocation policies. References :=

The Outsourcing Handbook A guide to outsourcing - Deloitte United Kingdom, page 10

Five Tips For Outsourcing Business Processes Effectively In 2021 - Forbes

The BEST method for the IT strategy committee to evaluate how well the IT department supports the business strategy is to use IT balanced scorecard reporting. An IT balanced scorecard (BSC) is a strategic management tool that translates the IT vision and mission intomeasurable objectives, indicators, targets, and initiatives across four perspectives: financial, customer, internal process, and learning and growth1. An IT balanced scorecard reporting is a process of collecting, analyzing, and communicating the performance data and results of the IT department based on the IT BSC framework2. An IT balanced scorecard reporting can help to:

Align the IT objectives and activities with the business strategy and expectations3

Monitor and evaluate the efficiency, effectiveness, and value of the IT department

Identify the strengths, weaknesses, opportunities, and threats of the IT department

Communicate and demonstrate the contribution and impact of the IT department to the business outcomes

Therefore, an IT balanced scorecard reporting is the most suitable method for the IT strategy committee to assess how well the IT department supports the business strategy.

The other options are not as good as option C. While it is useful to conduct a capability maturity assessment, a customer survey analysis, or an IT controls assurance program, these are not comprehensive enough to evaluate how well the IT department supports the business strategy. They are rather focused on specific aspects of the IT department, such as its processes, services, or controls. They do not necessarily cover all four perspectives of the IT BSC framework, which provide a holistic view of the IT performance and alignment with the business strategy. References :=

The IT Balanced Scorecard (BSC) Explained - BMC Software1

What Is a Balanced Scorecard (BSC), How Is it Used in Business?2

How to Align Your Business Strategy with Your Technology Strategy …3

How to Measure Your Strategic Plan’s Success - dummies

SWOT Analysis: What It Is and When to Use It - Business News Daily

How to Communicate Strategy Effectively - ClearPoint Strategy

This is the best way to mitigate the human factors of social engineering risk within the organization from a governance perspective, as it helps to educate and empower the employees to recognize and prevent social engineering attacks. Social engineering attacks are malicious attacks that use deception and manipulation to exploit human behavior and trick people into revealing sensitive information, clicking malicious links, or opening malicious files1. These attacks can cause serious damage to the organization, such as financial loss, data breach, reputation harm, or legal liability1. Therefore, it is essential to address the human factors of social engineering risk, which are the psychological and emotional vulnerabilities that make people susceptible to these attacks, such as curiosity, greed, fear, urgency, or trust2. By mandating annual security awareness training, the organization can raise the level of knowledge and awareness among the employees about the common types, techniques, and indicators of social engineering attacks, as well as the best practices and policies to avoid them2. Security awareness training can also help to foster a culture of security and responsibility among the employees, and to reinforce their role and accountability in protecting the organization’s assets and interests2. The other options are not as effective as mandating annual security awareness training, as they do not address the human factors of social engineering risk directly. Distributing the social media information security policy to staff may help to inform them about the rules and expectations for using social media platforms, but it does not ensure that they understand or follow them. Restricting access to social media may help to reduce the exposure to potential social engineering attacks, but it does not prevent them from occurring through other channels or mediums. Mandating security requirements be included in employee contracts may help to enforce compliance and deter violations, but it does not prevent them from happening due to ignorance or negligence.

Adopting wearable technology requires ensuring that IT’s infrastructure, processes, and standards can support the new initiative. The CGEIT Review Manual 8th Edition highlights that an enterprise architecture (EA) review is the best method to validate IT’s preparedness, as it assesses the alignment of IT capabilities with the requirements of new technologies.

Extract from CGEIT Review Manual 8th Edition (Domain 4: Strategic Management):"To validate IT’s preparedness for adopting new technologies, the CIO should request an enterprise architecture review. The EA review assesses whether current IT infrastructure, applications, and processes can support the technology initiative, identifying gaps and necessary adjustments." (Approximate reference: Domain 4, Section on Enterprise Architecture and Technology Adoption)

Requesting an enterprise architecture review (option A) ensures that the CIO evaluates IT’s technical and operational readiness for wearable technology, including compatibility with existing systems, scalability, and security requirements.

Why not the other options?

B. Perform a baseline business value assessment: A value assessment focuses on benefits, not IT’s technical preparedness, which is the primary concern here.

C. Request reprioritization of the IT portfolio: Portfolio reprioritization addresses resource allocation, not the technical readiness of IT systems.

D. Identify the penalties for noncompliance: Penalties are a risk management concern, not a direct method to validate IT preparedness.

Comprehensive and Detailed Explanation:

The CGEIT Review Manual 8th Edition, in its Governance of Enterprise IT domain, emphasizes monitoring system performance against defined objectives, such as availability. Performance indicators, often tied to service level agreements (SLAs), provide specific, measurable data (e.g., system uptime percentage) to assess whether availability objectives are met. For example, a performance indicator showing 99.8% uptime directly informs the committee. The manual likely references COBIT 2019’s APO09-Managed Service Agreements, which prioritizes performance indicators for service monitoring.

Option A: Critical success factors (CSFs) define conditions for success but are less specific than performance metrics.

Option C: Capability maturity levels assess process maturity, not system availability.

Option D: Balanced scorecard provides a broad performance overview but is less focused on specific availability metrics.

Double Verification: The answer aligns with COBIT’s APO09 and the CGEIT domain’s focus on service performance. Performance indicators are the primary ISACA tool for availability assessment.

ISACA CGEIT Review Manual 8th Edition, Domain 1: Governance of Enterprise IT (focus on service monitoring).

COBIT 2019, APO09-Managed Service Agreements.

ISACA Glossary (for definitions of performance indicators), available at https://www.isaca.org/resources/glossary.

Comprehensive and Detailed Explanation:

The CGEIT Review Manual 8th Edition, in its Strategic Management domain, emphasizes aligning IT initiatives like ERP upgrades with business objectives through thorough planning and requirements analysis. A successful ERP implementation requires understanding business needs to ensure the system supports competitive goals.

Option D: Conducting a comprehensive requirements review is the most helpful. This involves gathering and analyzing business and functional requirements to ensure the new ERP system meets current and future needs (e.g., scalability, integration). For example, a requirements review identifies critical processes (e.g., supply chain management) and ensures the ERP aligns with industry demands. The manual likely references COBIT 2019’s BAI02-Managed Requirements Definition, which prioritizes requirements analysis for successful IT projects.

Option A: Documenting the current ERP processes and procedures is useful for baseline understanding but doesn’t ensure the new system meets future needs.

Option B: Reviewing the ERP post-implementation report is irrelevant, as it applies to past implementations, not the current upgrade.

Option C: Establishing a change and transition planning process is important but secondary to defining requirements, as change management follows requirements.

Double Verification: The answer aligns with COBIT’s BAI02 and the CGEIT domain’s focus on strategic project planning. Requirements review is a foundational step in ISACA’s project management guidance.

ISACA CGEIT Review Manual 8th Edition, Domain 1: Governance of Enterprise IT (focus on strategic IT project planning).

COBIT 2019, BAI02-Managed Requirements Definition.

ISACA Glossary (for definitions of ERP and requirements review), available at https://www.isaca.org/resources/glossary.

Effective culture change is the process of transforming the values, beliefs, behaviors, and norms of the organization and its stakeholders to support the strategic alignment of business and IT goals. Effective culture change can enable the implementation of IT governance by:

Creating a shared vision and understanding of the purpose, benefits, and expectations of IT governance

Engaging and empowering the stakeholders to participate and collaborate in IT governance activities and decisions

Fostering a culture of trust, transparency, accountability, and responsibility for IT governance outcomes

Encouraging a culture of innovation, learning, and improvement for IT governance processes and practices

Aligning the incentives and rewards with the IT governance objectives and performance

Business management involvement as IT strategies are developed is the best indication of effective IT-business strategic alignment, because it ensures that the IT strategies are aligned with the business goals, needs, and expectations, and that the business stakeholders have a clear understanding and ownership of the IT initiatives. Business management involvement can also facilitate the communication, collaboration, and coordination between the IT and business functions, and help resolve any conflicts or issues that may arise during the IT strategy development process. Business management involvement can also foster a culture of trust, mutual respect, and shared vision between the IT and business functions, and enhance the value proposition and performance of the IT strategies. References := IT Strategic Planning and Alignment: Best Practices, What Is “IT-Business Alignment”?, Aligning IT and Business Strategy for Project Success