Isaca CGEIT - Certified in the Governance of Enterprise IT Exam

Communicating the objectives and responsibilities to staff is the BEST way to demonstrate senior management’s commitment to IT governance. IT governance is the process of ensuring that IT supports the achievement of the organization’s goals and objectives, and delivers value to its stakeholders1. IT governance involves aligning the IT strategy, policies, processes, and resources with the business strategy, needs, and expectations2. However, implementing and sustaining IT governance requires a significant amount of change in the organization, such as introducing new technologies, standards, roles, and responsibilities3. Therefore, communicating the objectives and responsibilities to staff is essential for demonstrating senior management’s commitment to IT governance, as it can:

Provide the direction and mandate for the IT governance initiative on an ongoing basis

Communicate the vision, mission, goals, and objectives of the IT function to all stakeholders

Allocate the necessary resources and capabilities to enable the IT governance processes and activities

Monitor and evaluate the performance and outcomes of the IT function and provide feedback and recognition

Foster a positive and collaborative culture that values IT as a strategic partner and enabler of the business

The other options are not as good as option C. While it is important to communicate the legal and regulatory requirements, the approved IT investment opportunities, and the need for enterprise architecture (EA), these are not sufficient to demonstrate senior management’s commitment to IT governance. They are rather means to achieve the end goal of implementing and sustaining IT governance. They do not necessarily reflect the level of commitment, involvement, and support from the management toward IT governance. References :=

What is IT Governance? Definition & Examples | ASQ2

What is IT governance? A formal way to align IT & business strategy1

How to Involve Senior Management in the Information Security Governance …3

The impact of information exposure is the most important factor for an enterprise to review when classifying information assets, because it helps to determine the level of sensitivity and protection that the information assets require. Information assets are classified according to their confidentiality, integrity, and availability, which reflect the potential harm or loss that could result from unauthorized disclosure, modification, or destruction of the information assets. The impact of information exposure can be assessed in terms of financial, reputational, legal, operational, or strategic consequences for the enterprise and its stakeholders. The impact of information exposure can also vary depending on the context, scope, and duration of the exposure. Therefore, by reviewing the impact of information exposure, an enterprise can assign appropriate labels and controls to its information assets, and ensure that they are handled and stored securely and appropriately. References := Information classification according to ISO27001, Information Asset and Security Classification Procedure, Information Classification Standard.

An information classification framework would be the most helpful to an enterprise that wants to standardize how sensitive corporate data is handled, because it provides a systematic and consistent way to identify, label, and protect the data according to its level of sensitivity and the impact of its exposure. An information classification framework helps to define the criteria and methods for classifying data into different categories, such as public, internal, confidential, or secret1. It also helps to specify the roles and responsibilities, policies and procedures, standards and expectations, and tools and techniques for handling data securely and appropriately throughout its life cycle2. An information classification framework also helps to comply with the legal and regulatory requirements, and to reduce the risks, costs, and complexity associated with data management3.

References := Information classification – How to do it according to ISO 27001, Create a well-designed data classification framework, Information classification framework diagram.

Key performance indicators (KPIs) are the best way to enable an IT steering committee to monitor the achievement of overall IT objectives on a continuous basis, as they are metrics that measure the progress and outcomes of IT activities, processes, and projects in relation to the enterprise’s vision, strategy, and goals. KPIs can help the IT steering committee to assess and communicate the effectiveness and efficiency of IT operations, services, and initiatives, as well as their contribution to customer satisfaction, business value, and innovation. KPIs can also help the IT steering committee to identify and address any issues or gaps in IT performance or alignment, as well as to evaluate and improve the IT governance and management practices. Performance Measurement Metrics for IT Governance provides an overview of KPIs and their benefits for IT governance.

Defined service level agreements (SLAs), project portfolio dashboards, and IT user survey results are also useful ways to monitor the achievement of overall IT objectives, but they are not the best way. Defined SLAs are contracts that specify the scope, standards, and expectations of IT service delivery, as well as the roles, responsibilities, and rights of both the service provider and the service recipient. Defined SLAs can help ensure that the IT services meet the quality and availability requirements of the business units, as well as monitor and measure the service performance and compliance. Project portfolio dashboards are tools that display the status, progress, and performance of IT projects in a graphical or visual way. Project portfolio dashboards can help track and communicate the key information and data about IT projects, such as scope, schedule, budget, risks, or issues. IT user survey results are feedback or opinions collected from the end users of IT systems or services through questionnaires or interviews. IT user survey results can help gauge and improve the user satisfaction and experience with IT systems or services, as well as identify and address any user needs or expectations.

 According to the CGEIT exam guide, IT resource management is the process of planning, acquiring, allocating, monitoring and optimizing the IT resources of an enterprise to support its strategy, objectives and goals. To evaluate IT resource management, it is most important to define the applicable key goals that the IT resources are expected to achieve or contribute to. These key goals should be aligned with the enterprise’s vision, mission and values, as well as the stakeholder needs and expectations. The key goals should also be specific, measurable, achievable, relevant and time-bound (SMART), and should be communicated and agreed upon by all relevant parties. Defining the applicable key goals will help to assess the performance, value and impact of IT resource management, as well as to identify the gaps, issues and opportunities for improvement. The other options are not as important as defining the applicable key goals, as they are more related to the implementation and execution of IT resourcemanagement, rather than its evaluation. References: CGEIT Exam Candidate Guide, page 14. CGEIT Certification, IT Resource Management

A balanced scorecard is a tool that would best demonstrate the current state of strategic alignment, because it is a framework that translates the enterprise’s vision and strategy into a set of performance measures that cover four perspectives: financial, customer, internal business process, and learning and growth12. A balanced scorecard can help to assess how well the IT function is supporting the business objectives, and identify the gaps and opportunities for improvement. A balanced scorecard can also help to communicate and monitor the IT strategy and goals, and align the IT activities and resources with the business needs and expectations1 .

The most important course of action for IT senior management to improve IT governance within the organization is to understand the driver that led to a desire to change. IT governance is the process of ensuring that IT supports and enables the achievement of the enterprise’s goals and objectives, and delivers value to the stakeholders1. IT governance is influenced by various internal and external factors, such as business strategy, customer expectations, regulatory requirements, industry standards, best practices, and emerging technologies1. Therefore, before initiating any improvement initiatives, IT senior management should first identify and analyze the driver that prompted the board of directors to request a change in IT governance. This will help them to understand the current situation, the desired state, the gap between them, and the rationale and urgency for improvement2. By understanding the driver that led to a desire to change, IT senior management can also align their improvement efforts with the board’s vision and expectations, communicate the benefits and challenges of change, and gain their support and commitment2. References: CGEIT Review Manual (Digital Version) or CGEIT Review Manual (Print Version), Chapter 1: Governance of Enterprise IT, Section 1.1: IT Governance Frameworks and Principles, Page 9-10. What is CGEIT? A certification for seasoned IT governance professionals.

 Effective IT governance is the process of ensuring that IT supports the achievement of the organization’s goals and objectives, and delivers value to its stakeholders1. IT governance involves aligning the IT strategy, policies, processes, and resources with the business strategy, needs, and expectations2. Therefore, the BEST evidence of effective IT governance is business value and customer satisfaction. Business value is the measure of the benefits and outcomes that IT provides to the organization, such as increased revenue, reduced costs, improved efficiency, enhanced innovation, or competitive advantage3. Customer satisfaction is the measure of the quality and performance of IT services and products, as perceived by the internal and external customers of the organization, such as employees, partners, suppliers, or end-users. By demonstrating business value and customer satisfaction, IT governance can show that IT is aligned with and supports the business goals and objectives.

The other options are not as good as option B. While cost savings and human resource optimization, IT risk identification and mitigation, and comprehensive IT policies and procedures are important aspects of IT governance, they are not sufficient to demonstrateeffective IT governance. They are rather means to achieve the end goal of delivering business value and customer satisfaction. They do not necessarily reflect the extent to which IT supports the achievement of the organization’s goals and objectives. References :=

What is IT Governance? Definition & Examples | ASQ2

What is IT governance? A formal way to align IT & business strategy1

How to Measure the Value of an IT Investment - TechSoup3

Measuring Customer Satisfaction in Information Technology Services - ISACA

According to the CGEIT exam guide, the risk appetite is the amount and type of risk that an enterprise is willing to accept in pursuit of its objectives. It is a key element of the IT governance framework and should be defined by senior management before developing and managing digital applications for a new enterprise. The risk appetite provides the basis for establishing the risk management strategy, policies and processes, as well as the risk culture and awareness of the enterprise. References: CGEIT Exam Candidate Guide, page 15. CGEIT Certification