Free Practice Questions for Isaca CGEIT Exam

According to the CGEIT certification guide, the CEO’s first course of action should be to ensure that there is a clear governance framework for outsourcing and that the roles and responsibilities for managing service providers are defined and assigned. This will help to establish accountability, oversight and control over the SaaS solution and its provider. References := CGEIT certification guide, domain 1: Governance of Enterprise IT, section 1.3: Governance Frameworks, page 17.

 A change management program is the best option to prevent the problem of a lack of stakeholder buy-in to the innovation improvement initiatives, because it is a systematic and structured approach to managing the human side of change and ensuring that the stakeholders are engaged, informed, and committed to the change process. A change management program can help to identify and analyze the stakeholders, their needs, expectations, and concerns, and develop appropriate strategies and actions to communicate, educate, involve, and support them throughout the change journey. A change management program can also help to assess and address the potential risks, barriers, and resistance to change, and monitor and measure the effectiveness and outcomes of the change initiatives. According to Making Change Happen: 5 Keys to Driving Successful Change Initiatives, “Stakeholders are all the people who affect or are affected by the change initiative. Project participants can’t make the change happen by themselves. They need champions and supporters. It’s important to align stakeholders around the overall vision and then actively engage them throughout the process.”

Analysis of data flows and the full data life cycle should be conducted at the enterprise level, because it provides a holistic and comprehensive view of how data is created, stored, processed, used, and disposed of across the entire organization. By conducting data analysis at the enterprise level, the financial institution can ensure that the data integration from branch locations is aligned with the business objectives, needs, and expectations, and that the data quality, security, and compliance are maintained throughout the data life cycle. Data analysis at the enterprise level can also help to identify and address any data gaps, issues, or risks that may affect the regulatory reporting requirements or the performance and value of the data. According to Data Life Cycle and Data Governance What CDOs and CISOs Can Learn, “Data governance is an enterprise-wide program that requires a holistic approach to managing data throughout its life cycle.”

 This is because a risk program is a strategic initiative that requires the support and involvement of the top leaders of the enterprise. Senior management can demonstrate their commitment to the risk program by:

Providing clear direction and guidance on the objectives, scope, and approach of the risk program

Allocating sufficient resources, budget, and authority to the risk program team

Communicating the importance and benefits of the risk program to all stakeholders

Encouraging a culture of risk awareness and accountability across the enterprise

Reviewing and approving the risk program deliverables and outcomes

Rewarding and recognizing the achievements and contributions of the risk program team and participants

A risk management framework (A) is a tool that helps to define and implement the risk program, but it does not ensure its success without senior management commitment. Mandatory risk awareness courses for staff (B) are a way to increase the knowledge and skills of the staff regarding risk management, but they do not guarantee their engagement and participation in the risk program without senior management endorsement. A risk recognition and reporting policy © is a document that establishes the rules and procedures for identifying and communicatingrisks, but it does not ensure its compliance and effectiveness without senior management oversight.

Prior to setting IT objectives, an enterprise must have established its strategies. Strategies are the high-level plans that define the direction and goals of the enterprise and how it will achieve them. Strategies provide the context and guidance for setting IT objectives, which are the specific and measurable outcomes that IT will deliver to support the strategies. IT objectives should be aligned with and derived from the enterprise strategies, as well as the enterprise vision, mission, and values

 Loss of data confidentiality represents the greatest risk for a large financial institution that is considering outsourcing customer call center operations, as it would expose sensitive customer and business information to unauthorized access, disclosure, or misuse by the chosen vendor or other third parties. Data confidentiality is especially important for financial institutions, as they deal with personal, financial, and transactional data that are subject to strict regulatory and legal requirements, such as the General Data Protection Regulation (GDPR) and the Payment Card Industry Data Security Standard (PCI DSS). A breach of data confidentiality could result in reputational damage, customer dissatisfaction, legal liability, and financial loss for the financial institution. The other options are not as great, as they are more related to the operational or performance aspects of outsourcing, rather than the security or compliance aspects of it. References: : CGEIT Review Manual (Digital Version), Chapter 4: Risk Optimization, Section 4.3: IT Risk Management, Subsection 4.3.1: IT Risk Management Overview, Page 153 : CGEIT Review Manual (Digital Version), Chapter 5: Resource Optimization, Section 5.3: Security Resource Management, Subsection 5.3.1: Security Resource Management Overview, Page 192 : Offshore bank call centers face risks around privacy, resilience amid COVID-191 : Call Center Outsourcing Risks and How to Mitigate Them

 A business risk profile is a document that identifies and evaluates the potential risks that can affect the performance, objectives, and strategy of an organization. A business risk profile can help to prioritize and mitigate the risks, as well as to align the risk management activities with the business goals and needs12.

If an enterprise has made the strategic decision to reduce operating costs for the next year and is taking advantage of cost reductions offered by an external cloud service provider, the IT steering committee’s primary concern should be updating the business risk profile. This is because using an external cloud service provider may introduce new or increased risks for the enterprise, such as security, privacy, compliance, availability, performance, or vendor lock-in risks3 . Updating the business risk profile can help the IT steering committee to assess the impact and likelihood of these risks, to evaluate the effectiveness and adequacy of the existing controls and safeguards, to identify and implement any additional measures or actions to address the gaps or issues, and to monitor and report the risk status and outcomes12. References: Business Risk Profile: Definition & Examples. How to Create a Business Risk Profile. A risk assessment model for selecting cloud service providers. Cloud Computing Security for Cloud Service Providers.

 An enterprise acceptable use policy is the most important document to update if a decision is made to ban end user-owned devices in the workplace, as it defines and communicates the rules and guidelines for the appropriate and secure use of IT resources and services by the employees and other authorized users. An enterprise acceptable use policy also helps to protect the enterprise’s data, assets, and reputation from unauthorized or malicious access, disclosure, or damage12. Updating the enterprise acceptable use policy to reflect the ban on end user-owned devices can help to ensure compliance, awareness, and enforcement of the decision. References := CGEIT Exam Content Outline, Domain 1, Subtopic C: InformationGovernance, Task 2: Ensure that information governance processes are aligned with the enterprise risk management (ERM) processes.

According to the CGEIT certification guide, the balanced scorecard is the most effective means for IT management to report to executive management regarding the value of IT. The balanced scorecard is a strategic management tool that translates the vision and strategy of an organization into a comprehensive set of performance measures that provide the framework for a strategic measurement and management system1. The balanced scorecard enables IT management to communicate the value of IT in terms of four perspectives: financial, customer, internal business process, and learning and growth2. The balanced scorecard helps IT management to align IT objectives with business objectives, monitor and improve IT performance, and demonstrate IT contribution to business value3.

The other options are less effective than option D, as they do not provide a comprehensive and balanced view of the value of IT. IT process maturity level is a measure of how well-defined, managed, measured, and optimized an IT process is4. While it can indicate the quality and efficiency of IT processes, it does not directly link them to business outcomes or value. Cost-benefit analysis is a technique that compares the costs and benefits of an IT project or investment. While it can show the financial return of IT initiatives, it does not capture the non-financial aspects of IT value, such as customer satisfaction, innovation, or learning. Resource assessment is a process that evaluates the availability and utilization of IT resources, such as people, technology, or information. While it can show the capacity and capability of IT resources, it does not measure how they support the business strategy or goals.

References :=

CGEIT certification guide, domain 4: Benefits Realization, section 4.3: Value Governance, page 147.

CGEIT certification guide, domain 4: Benefits Realization, section 4.4: Performance Measurement and Reporting, page 150.

Balanced Scorecard - an overview | ScienceDirect Topics

IT Process Maturity - an overview | ScienceDirect Topics

[Cost-Benefit Analysis - an overview | ScienceDirect Topics]

[Resource Assessment - an overview | ScienceDirect Topics]