Isaca CGEIT - Certified in the Governance of Enterprise IT Exam

Establishing a uniform definition for likelihood and impact through risk management standards primarily addresses the concern of conflicting interpretations of risk levels. This is because likelihood and impact are two key factors that determine the level of risk associated with a threat or event. Different stakeholders may have different perceptions and expectations of what constitutes a high, medium, or low likelihood or impact, which can lead to inconsistent or inaccurate risk assessment and management. By defining and applying a common set of criteria and scales for likelihood and impact, risk management standards can help to ensure a consistent and objective evaluation and communication of risk levels across the organization

An IT training plan is a document that outlines the learning objectives, activities, and resources for developing the skills and competencies of IT staff and stakeholders1. The best way to ensure that resource skills requirements are identified is to determine training needs based on the capabilities to support the IT strategy. The IT strategy is a document that defines the vision, mission, goals, and objectives of IT in alignment with the business strategy2. The IT strategy also identifies the current and future IT capabilities that are needed to deliver value and achieve the desired outcomes3. By assessing the gap between the current and future IT capabilities, the training needs can be derived and prioritized according to the IT strategy. This way, the IT training plan can ensure that the resource skills requirements are relevant, consistent, and effective for supporting the IT strategy.

References :=

How to Create an Effective IT Training Plan | Simplilearn

What is an IT Strategy? - Definition from Techopedia

IT Strategy: A 3-step Process To Creating Your Own

[How to Conduct a Training Needs Analysis: A Template & Example]

The IT investment process is a systematic approach to selecting, managing, and evaluating information technology investments that align with the enterprise’s strategic goals and objectives. The first step in the IT investment process is to select IT projects that will best support the enterprise’s mission, vision, and values. This involves identifying the business needs, problems, or opportunities that IT can address, and prioritizing them based on their alignment with the enterprise’s strategy, performance, and risk management. This step also involves defining the scope, objectives, and expected outcomes of each IT project, and establishing criteria for measuring its success and value. Selecting IT projects that will best support the enterprise’s mission helps ensure that IT investments are relevant, effective, and efficient for the enterprise.

Classifying information using an agreed-upon schema is the best way to ensure the integrity of data when establishing an enterprise data model. A schema is a logical structure that defines how data is organized, stored, and accessed. By using a common schema across the enterprise, data can be standardized, validated, and integrated more easily and consistently. A schema also helps to avoid data duplication, inconsistency, and ambiguity, which can compromise data integrity. References: What Is an Enterprise Data Model? [+ Examples] - HubSpot Blog

 The first step that the CIO should do to help ensure continuous alignment of IT with the new business strategy is to review the existing IT strategy against the new business strategy. A review is a process of evaluating and comparing the current state and performance of the IT strategy with the desired state and expectations of the new business strategy. A review can help identify the strengths, weaknesses, opportunities, and threats of the IT strategy, as well as the gaps, risks, and issues that need to be addressed. A review can also provide insights and recommendations for improving and aligning the IT strategy with the new business strategy. According to COBIT 5, one of the seven enablers of IT governance is performance management, which includes reviewing and monitoring the achievement of IT-related goals and objectives1. The review is also part of the IT governance domain 2: Strategic Alignment2.

The other options are not the first steps that the CIO should do to ensure continuous alignment of IT with the new business strategy. Revising the existing IT strategy to align with the new business strategy is a step that follows after reviewing the existing IT strategy, as it involves making changes and adjustments to the IT strategy based on the findings and recommendations of the review. Establishing a new IT strategy committee for the new enterprise is a step that may or may not be necessary depending on the existing governance structure and processes, and it does not directly address the alignment issue. Assessing the IT cultural aspects of the acquired entity is a step that may be relevant for integrating and harmonizing the IT functions and practices of both entities, but it does not ensure alignment with the new business strategy. References := 1: COBIT 5: A Business Framework for the Governance and Management of Enterprise IT, ISACA, page 312: CGEIT Review Manual 2023, ISACA, page 69.

 IT governance is a formal framework that provides a structure for organizations to ensure that IT investments support business objectives. IT governance helps align IT and business strategies, manage IT risks and benefits, and deliver value to key stakeholders. One of the main objectives of IT governance is to balance the demand for information and the ability to deliver it in an effective and efficient manner. References :=

CGEIT Review Manual 2023, Chapter 1: Framework for the Governance of Enterprise IT, page 8

CGEIT Review Questions, Answers & Explanations Manual 2023, Question 277, page 65

The most critical activity for reducing the impact caused by IT staff turnover is to document processes and procedures, as this can help preserve the knowledge and experience of the existing IT staff, as well as facilitate the training and orientation of the new IT staff. Documenting processes and procedures can also help standardize and improve the quality and efficiency of IT operations, services, and projects, as well as ensure compliance with regulations and policies. Documenting processes and procedures can also help define and clarify the roles and responsibilities of the IT staff, as well as the expectations and requirements of the business units.

Outsourcing the IT operation, increasing compensation for IT staff, and hiring temporary staff are possible activities for addressing the IT staff turnover issue, but they are not the most critical activity. Outsourcing the IT operation may reduce the dependency on internal IT staff, but it may also introduce new risks and challenges for IT governance and management, such as vendor selection, contract negotiation, service level agreement (SLA) monitoring, and data security. Increasing compensation for IT staff may improve the retention and motivation of the existing IT staff, but it may also increase the operational costs and budget constraints of the IT department. Hiring temporary staff may fill the gaps or shortages in IT skills or resources, but it may also affect the continuity and consistency of IT service delivery, as well as the integration and collaboration of IT teams.

According to the CGEIT exam guide, the main focus of IT policies is to provide business value by aligning IT with business objectives and strategies, ensuring effective and efficient use of IT resources, and delivering IT-enabled capabilities that meet stakeholder needs and expectations. IT policies should also support the optimization of operational benefits, the enhancement of organizational capability, and the limitation of IT costs, but these are not the main focus of IT policies. References: CGEIT Exam Candidate Guide, page 13. CGEIT Certification

The most effective way for the CIO to ensure the IT management team is held accountable for the delivery of the plan is to revise the managers’ performance goals to include key objectives that are aligned with the IT strategic plan. This way, the managers will have clear and measurable targets that reflect their contribution to the IT strategy and vision. The CIO can also monitor and evaluate the managers’ progress and performance based on these goals, and provide feedback, recognition, or improvement actions as needed.

The other options are not the most effective way for the CIO to ensure the IT management team is held accountable for the delivery of the plan. Updating the IT balanced scorecard with key objectives is a good practice, but it does not directly link the objectives to the managers’ individual responsibilities and incentives. Enforcing disciplinary action for managers if the plan is not delivered is a negative and punitive approach, which may demotivate and discourage the managers from pursuing the plan. Providing management training on IT strategic objectives is a helpful initiative, but it does not specify how the managers will be assessed and rewarded for achieving the objectives.

For more information on IT strategic planning and accountability, you can refer to these web sources:

IT Strategic Planning: A Step-by-Step Guide

How to Hold Your Team Accountable

IT Governance - CIO Wiki

 When updating an IT governance framework to support an outsourcing strategy, the most important aspect is to ensure the effective management of contracts with third-party providers. Contracts are the legal documents that define the scope, terms, conditions, and expectations of the outsourcing relationship, as well as the roles, responsibilities, and obligations of both parties. Contracts also specify the service level agreements (SLAs), key performance indicators (KPIs), and reporting mechanisms that are used to measure and monitor the quality and performance of the outsourced services. Contracts also provide the mechanisms for resolving disputes, enforcing compliance, and managing changes and risks. Therefore, ensuring the effective management of contracts with third-party providers is essential for achieving the desired outcomes and benefits of outsourcing, as well as for mitigating the potential challenges and issues that may arise from outsourcing. References: Outsourcing Governance Framework1, Guidelines on outsourcing arrangements2, IT governance -managing the outsourcing relationship3

The first step to address the concern of discrimination against certain demographic groups resulting from the use of machine learning models is to obtain stakeholders’ input regarding the ethics associated with machine learning. This is because stakeholders are the ones who are affected by or have an interest in the outcomes of machine learning models, and their input can help identify the ethical values, principles, and standards that should guide the development and use of machine learning models. Stakeholders’ input can also help ensure that the machine learning models are aligned with the enterprise’s mission, vision, and goals, as well as the legal and regulatory requirements. According to COBIT 5, one of the seven enablers of IT governance is stakeholders1. The Ethics and Governance of Artificial Intelligence project also emphasizes the importance of engaging with diverse stakeholders to ensure that AI systems are fair,accountable, transparent, and human-centric2. References := 1: COBIT 5: A Business Framework for the Governance and Management of Enterprise IT, ISACA, page 312: Algorithms and Justice - Berkman Klein Center

 Enterprise architecture (EA) is the most important thing to review in this situation, as it provides a holistic view of the current and desired state of the IT applications, data, and infrastructure, as well as the business processes, capabilities, and goals that they support. EA can help identify the redundant IT applications, the data sources and dependencies, the integration requirements and challenges, and the alignment with the strategic initiative of providing integrated services to customers. EA can also help define the roadmap, standards, and governance for achieving the desired state of IT integration.

IT risk register, balanced scorecard measures, and IT strategic plan are also important things to review, but they are not as essential as EA in this situation. IT risk register is a document that records the IT risks that may affect the enterprise’s objectives and operations, as well as their likelihood, impact, mitigation strategies, and status. IT risk register can help identify and manage the potential risks associated with IT integration, such as data quality, security, compatibility, performance, and compliance issues. Balanced scorecard measures are a set of metrics that track the performance of IT in relation to the enterprise’s vision, strategy, and goals. Balanced scorecard measures can help evaluate the effectiveness and efficiency of IT integration, as well as its contribution to customer satisfaction, business value, and innovation. IT strategic plan is a document that outlines the vision, mission, objectives, initiatives, and actions of IT to support the enterprise’s strategy and goals. IT strategic plan can help align IT integration with the business needs and expectations, as well as allocate the necessary resources and budget for it.

References := Enterprise Architecture Governance - CIO Wiki; Enterprise Architecture Governance | The Definitive Guide | LeanIX; Enterprise Architecture Governance – Why It Is Important (Part 2); What is IT governance? A formal way to align IT & business strategy.

A succession plan is a process of identifying and preparing potential candidates to take over key roles in an organization when the current incumbents leave or retire. A succession plan is an important governance action to prepare for the possibility of losing a large portion of the organization’s key IT staff, as it can help to ensure the continuity and stability of the IT function and its alignment with the business objectives and strategies. A succession plan can also help to mitigate the risks and challenges associated with talent shortages, knowledge gaps, and leadership transitions. A succession plan should be developed in collaboration with the human resources (HR) department, the IT senior management, and the board of directors, and should include the following steps:

Identify the critical IT roles and their competencies, responsibilities, and performance expectations

Assess the current IT staff and their readiness, potential, and interest to assume higher-level or more complex roles

Conduct a gap analysis to determine the difference between the current and future skills and capabilities needed for the IT function

Develop a talent pipeline and a talent pool of internal and external candidates who can fill the critical IT roles

Provide learning and development opportunities for the identified candidates, such as training, coaching, mentoring, job rotation, or shadowing

Monitor and evaluate the progress and performance of the candidates and provide feedback and support

Review and update the succession plan periodically to reflect any changes in the business or IT environment

 A data steward is a role that is responsible for data normalization when it is found that a new system includes duplicates of data items, because a data steward is accountable for the quality, integrity, and consistency of the data in the enterprise. A data steward can define and enforce data standards, policies, and rules, and perform data cleansing, validation, and reconciliation activities to ensure that the data is accurate, complete, and reliable12.