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

A new CIO must first understand the enterprise’s context, including its corporate culture and how IT contributes to business value, to ensure that the IT governance framework is relevant and effective. The CGEIT Review Manual 8th Edition stresses that understanding the organizational context is the foundational step for governance initiatives.

Extract from CGEIT Review Manual 8th Edition (Domain 1: Governance of Enterprise IT):"Before designing an IT governance framework, the CIO must understand the enterprise’s corporate culture, business objectives, and the role of IT in delivering value. This ensures that the governance framework is tailored to the organization’s unique needs and context.” (Approximate reference: Domain 1, Section on Governance Framework Development)

Understanding corporate culture and IT’s role in providing business value (option C) sets the stage for designing a governance framework that aligns with the enterprise’s goals and is accepted by stakeholders.

Why not the other options?

A. Develop an IT balanced scorecard to monitor and track IT performance: A balanced scorecard is a performance management tool, not the first step in governance framework development.

B. Verify stakeholder sponsorship of the IT governance initiative: Sponsorship is important but follows understanding the organizational context, as the CIO needs to know what stakeholders value.

D. Understand critical IT processes to define the scope of the IT governance framework: Process understanding is a subsequent step that builds on the broader organizational context.

The primary consideration for an enterprise when deciding whether to adopt a qualitative risk assessment method is:

The level of detail and accuracy required for the risk assessment. Qualitative risk assessment is a method that uses scenarios, subjectivity, and knowledge to evaluate risks. It does not provide specific objective measurements of exposure, but rather a relative ranking or rating of risks based on their likelihood and impact1. Qualitative risk assessment is suitable for situations where the data is scarce, uncertain, or incomplete, or where the risk assessment needs to be done quickly and easily1. However, qualitative risk assessment may also be biased, inconsistent, or inaccurate, as it depends on the judgment and experience of the risk assessors1. Therefore, an enterprise should consider the level of detail and accuracy required for the risk assessment before choosing a qualitative method. If the enterprise needs more precise and reliable estimates of risk exposure, it may opt for a quantitative method instead1.

The other options are not the primary consideration for an enterprise when deciding whether to adopt a qualitative risk assessment method. The method identifies areas to immediately address vulnerabilities, enables an analysis of recommended controls, and provides a platform for all departments to contribute to the risk assessment are all possible benefits or outcomes of using a qualitative risk assessment method, but they are not the main factor that influences the decision to use it. They may also apply to other methods of risk assessment, such as quantitative or hybrid methods2.

The primary role of the governance function in enabling an enterprise to achieve its business objectives is to provide a means to effectively manage stakeholders. Stakeholders are the individuals or groups that have an interest or stake in the enterprise’s activities, outcomes, and performance. They include shareholders, customers, employees, suppliers, regulators, and society at large. Effective stakeholder management involves identifying, engaging, communicating, and satisfying the needs and expectations of the stakeholders in a transparent and ethical manner. By providing a means to effectively manage stakeholders, the governance function can help the enterprise to align its vision, mission, strategy, and values with the stakeholder interests, foster trust and collaboration among the stakeholder groups, balance the economic and social goals and the individual and communal goals of the enterprise, and enhance the reputation and legitimacy of the enterprise in the market and society.

The other options are not as primary as providing a means to effectively manage stakeholders for the governance function. Determining risk thresholds that the enterprise can sustain is animportant aspect of the governance function, but it is not the primary role. Risk thresholds are the levels of risk exposure that the enterprise is willing to accept or tolerate in pursuit of its business objectives. They are derived from the enterprise’s risk appetite and risk tolerance statements, which reflect the enterprise’s culture, values, and strategy. The governance function can help to define, communicate, and monitor the risk thresholds that the enterprise can sustain, but this is not its primary role. Preparing business continuity and resiliency plans is a vital responsibility of the management function, not the governance function. Business continuity and resiliency plans are the documents that outline the processes and procedures for ensuring the continuity of critical business functions and operations in the event of a disruption or crisis. They also describe how the enterprise can recover from the disruption or crisis and resume normal operations as soon as possible. The governance function can oversee and approve the business continuity and resiliency plans prepared by the management function, but this is not its primary role. Monitoring strategic plans to reach the desired target state is a key activity of both the governance function and the management function, but it is not their primary role. Strategic plans are the documents that define the long-term goals and objectives of the enterprise and how they will be achieved. They also specify the resources, actions, measures, and timelines for implementing the strategy. The governance function can set the direction and scope of the strategic plans, while the management function can execute and report on them. Both functions can monitor the progress and performance of the strategic plans to reach the desired target state, but this is not their primary role. References := The five functions of governance – Project Manager, What is a Governance Structure? - ESG | The Report, Develop an effective governance structure | Australian Public Service …

 Value delivery is the best indicator of the effectiveness of IT governance in an enterprise because it measures how well IT supports the business objectives and creates value for the stakeholders. The other options are important aspects of IT governance, but they are not as comprehensive as value delivery. References := ISACA, CGEIT Review Manual, 7th Edition, Chapter 1: Framework for the Governance of Enterprise IT, Section 1.2: Principles of IT Governance, p. 9.

Comprehensive and Detailed Explanation:

The CGEIT Review Manual 8th Edition, in its Benefits Realization domain, focuses on evaluating IT investments to estimate and realize benefits. Estimating benefits for a SaaS application requires quantifying expected financial and operational outcomes to justify the investment.

Option C: Expected monetary value is the best method. This approach calculates the probable financial benefits (e.g., cost savings, revenue growth) by weighting potential outcomes by their probabilities. For a SaaS application, it might estimate benefits like reduced IT maintenance costs or increased productivity, factoring in uncertainties. The manual likely references COBIT 2019’s APO05-Managed Portfolio, which includes value estimation techniques for IT investments.

Option A: Monte Carlo analysis is used for risk assessment, not direct benefit estimation, as it models scenarios with probabilities.

Option B: Total cost of ownership (TCO) focuses on costs, not benefits, though it complements benefit analysis.

Option D: Heuristic methods rely on subjective judgment, lacking the precision needed for benefit estimation.

Double Verification: The answer aligns with COBIT’s value management processes and the CGEIT domain’s emphasis on quantifying benefits. Expected monetary value is a standard financial technique in ISACA’s frameworks.

ISACA CGEIT Review Manual 8th Edition, Domain 3: Benefits Realization (focus on benefit estimation).

COBIT 2019, APO05-Managed Portfolio.

ISACA Glossary (for definitions of expected monetary value), available at https://www.isaca.org/resources/glossary.

Thebest strategic responseis todevelop and enforce IT asset life cycle policies in consultation with business units. This approach ensures that legacy systems are managed proactively and collaboratively, balancing risk management, regulatory compliance, and operational needs. Policies should define criteria for decommissioning, archival solutions, and acceptable retention practices.

Firewalls and isolation are tactical mitigations, not strategic solutions. Surcharges may discourage usage but do not resolve governance and retention challenges comprehensively.

Corporate culture is the most influential driver of ethical decision-making. It shapes the behavior, attitudes, and values of individuals and determines whether ethical frameworks like codes of conduct and training programs are truly effective in practice.

While control environments and training reinforce behavior, the culture sets the tone from the top, influencing whether ethics are embraced or bypassed.

The most efficient way for an IT transformation project manager to communicate the project progress with stakeholders is to include key performance indicators (KPIs) in a monthly newsletter. This is because KPIs are measurable values that indicate how well the project is achieving its objectives and delivering value to the business1. By including KPIs in a monthly newsletter, the project manager can:

Provide a concise, clear, and consistent overview of the project status and results to the stakeholders2

Highlight the project achievements, challenges, and opportunities2

Demonstrate the alignment of the project with the business strategy, goals, and priorities2

Solicit feedback and suggestions from the stakeholders2

Foster a sense of engagement and collaboration among the stakeholders2

A monthly newsletter is an efficient communication channel, as it can reach a large and diverse audience of stakeholders, such as senior executives, business managers, IT staff, customers, and partners. It can also be easily distributed and accessed through email or intranet. A monthly frequency is appropriate for communicating the project progress, as it can provide timely and relevant information without overwhelming or distracting the stakeholders.

The other options, establishing governance forums within project management, sharing the business case with stakeholders, and posting the project management report to the enterprise intranet site are not as efficient as including KPIs in a monthly newsletter for communicating the project progress with stakeholders. They are more related to the planning and execution of the project, rather than its communication. They may also be too formal, detailed, or infrequent for some stakeholders who may prefer a more informal, concise, or frequent view of the project progress.