Isaca CGEIT - Certified in the Governance of Enterprise IT Exam

Migrating patient records to a cloud provider involves sensitive data, making data governance a critical first step to ensure compliance and security. The CGEIT Review Manual 8th Edition emphasizes that reviewing the data governance policy is the first action to align migration with data protection and regulatory requirements.

Extract from CGEIT Review Manual 8th Edition (Domain 3: Risk Optimization):"When migrating sensitive data, such as patient records, to a cloud environment, the first step is to review the current data governance policy to ensure that data classification, security, and compliance requirements are addressed. This informs subsequent actions, such as SLAs and risk management." (Approximate reference: Domain 3, Section on Data Governance and Cloud Migration)

Reviewing the current data governance policy (option A) ensures that the migration adheres to policies on data privacy, security, and regulatory compliance, particularly for sensitive patient records.

Why not the other options?

B. Update the enterprise architecture (EA): EA updates may be needed but follow governance review to ensure alignment with data policies.

C. Revise the risk management framework: Risk framework revision is premature without understanding governance requirements.

D. Define the service level agreement (SLA): SLAs are defined after governance and risk considerations are addressed.

A business continuity plan (BCP) relies on clear roles and responsibilities to ensure effective execution during a disruption. The CGEIT Review Manual 8th Edition emphasizes that defined roles are the most critical component for BCP success, as they ensure accountability and coordination.

Extract from CGEIT Review Manual 8th Edition (Domain 3: Risk Optimization):"The most important element for executing a business continuity plan is the definition of roles and responsibilities. Clear roles ensure that all stakeholders know their duties during a disruption, enabling rapid and coordinated response." (Approximate reference: Domain 3, Section on Business Continuity Planning)

Defined roles (option A) are essential to ensure that the BCP is actionable, with individuals assigned to specific tasks, such as communication, recovery, or coordination.

Why not the other options?

B. Replicated systems: Systems are important but useless without people to manage them during a crisis.

C. A risk register: A risk register identifies risks but does not ensure BCP execution.

D. Budget allocation: Funding supports BCP development but is not the most critical for execution.

Changes to the IT strategy must consider their impact on the enterprise architecture (EA), as the EA defines the structure and standards that enable strategy execution. The CGEIT Review Manual 8th Edition highlights that assessing EA impact is the greatest consideration to ensure that strategic changes are feasible and sustainable.

Extract from CGEIT Review Manual 8th Edition (Domain 4: Strategic Management):"When modifying the IT strategy, the CIO’s greatest consideration is assessing the impact on the enterprise architecture, as the EA provides the blueprint for IT capabilities, processes, and standards. Misalignment with EA can lead to implementation challenges and reduced effectiveness." (Approximate reference: Domain 4, Section on Strategy and EA Alignment)

Assessing the impact to the enterprise architecture (option B) ensures that the IT strategy leverages existing capabilities and addresses any architectural gaps, making it the most critical consideration.

Why not the other options?

A. Have key stakeholders been consulted?: Stakeholder consultation is important but secondary to ensuring the strategy is technically feasible via EA alignment.

C. Have IT risk metrics been adjusted?: Risk metrics are adjusted as part of risk management, not the primary concern for strategy changes.

D. Has the investment portfolio been revised?: Portfolio revision follows strategy and EA alignment to ensure investments support the updated strategy.

Key performance indicators (KPIs) are metrics that measure the performance of a project, program, or investment against a set of targets, objectives, or benchmarks. KPIs can help an enterprise to determine whether a current program for IT infrastructure migration to the cloud is continuing to provide benefits by tracking the progress, efficiency, quality, and outcomes of the program. KPIs can also help to identify any gaps, issues, or risks that may affect the program’s success and enable timely corrective actions12.

Total cost of ownership (TCO) is the purchase price of an asset plus the costs of operation over its life span. TCO can help an enterprise to compare the costs and benefits of different IT infrastructure options, such as cloud versus on-premise, but it does not measure the ongoing performance or benefits of a chosen option3.

Key risk indicators (KRIs) are metrics that monitor and predict potential risks that may negatively impact an enterprise’s objectives or operations. KRIs can help an enterprise to identify and mitigate any risks associated with IT infrastructure migration to the cloud, such as security breaches, data loss, or service disruptions, but they do not measure the benefits or value of the program45.

Net present value (NPV) is the difference between the present value of cash inflows and the present value of cash outflows over a period of time. NPV is used to evaluate the profitability or return on investment of a project or investment by discounting the future cash flows to their present value. NPV can help an enterprise to decide whether to undertake an IT infrastructuremigration to the cloud based on its expected net value, but it does not measure the actual performance or benefits of the program16. References :=

3: Total Cost of Ownership: How It’s Calculated With Example - Investopedia

4: Key Risk Indicators (KRIs) - National Treasury

2: How to Develop Key Risk Indicators (KRIs) to Fortify Your Business | AuditBoard

5: How to Develop Effective Key Risk Indicators - Secureframe

1: Net Present Value (NPV) - Definition, Examples, How to Do NPV Analysis

6: NPV Formula - Learn How Net Present Value Really Works, Examples

According to the CGEIT exam content outline1, one of the subtopics under the domain of Governance of Enterprise IT is “Governance Strategy Alignment with Enterprise Objectives”. This subtopic covers the process of ensuring that the IT strategy is aligned with the business strategy and supports the achievement of enterprise goals and objectives. Therefore, the best course of action for the CIO in this situation is to align the business strategy with the IT strategy, which would help the IT team to meet the new demands and deliver value to the enterprise. References: 1: CGEIT Exam Content Outline | ISACA

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.

A data protection impact assessment (DPIA) is designed to identify and mitigate risks to data privacy. The CGEIT Review Manual 8th Edition states that the primary objective of a DPIA is to analyze how business processes affect data privacy, particularly for personal data.

Extract from CGEIT Review Manual 8th Edition (Domain 3: Risk Optimization):"The primary objective of a data protection impact assessment is to identify and analyze how business processes, systems, or projects may impact the privacy of personal data. This helps ensure compliance with data protection regulations and mitigates privacy risks." (Approximate reference: Domain 3, Section on Data Privacy and Compliance)

Identifying and analyzing how data privacy might be affected by business processes (option A) is the core purpose of a DPIA, aligning with regulatory requirements like GDPR.

Why not the other options?

B. To evaluate the quality and integrity of personal data stored in an enterprise: Data quality is a separate concern, not the focus of a DPIA.

C. To estimate the value created by personal data as it progresses through its life cycle: Value estimation is a business analysis, not a DPIA objective.

D. To ensure key business processes and related data interfaces are documented: Documentation may be a byproduct, but it is not the primary objective.

The best way for a CIO to ensure that the work of IT employees is aligned with approved IT directives is to include relevant IT goals in individual performance objectives. This means that the CIO should communicate the IT vision, mission, strategy and objectives to the IT staff and link them to their personal and professional development plans. By doing so, the CIO can motivate the IT employees to work toward the desired outcomes, monitor their progress and performance, provide feedback and recognition, and address any issues or gaps. Including relevant IT goals in individual performance objectives can also help to align the IT employees with the business needs and expectations, foster a culture of accountability and collaboration, and improve the quality and value of IT services12. References := How to Align Employee Performance With Organizational Goals, The Importance And Challenges Of Employee Alignment

Adding the achievement of specific competencies to employee performance goals best supports an IT strategy committee's objective to align employee competencies with planned initiatives. This approach directly links employee development and performance evaluation to theacquisition of skills and knowledge required for the organization's strategic initiatives. By embedding competency development into performance goals, employees are incentivized to acquire the necessary skills, ensuring that the workforce is capable of supporting and executing strategic plans. While hiring students, specifying training hours, and requiring balanced scorecard training can contribute to skill development, integrating competency achievement into performance goals ensures a direct and measurable alignment with strategic needs.

After receiving recommendations to improve the IT governance framework, the CIO must assess their feasibility to ensure they are practical and aligned with the enterprise’s resources and goals. The CGEIT Review Manual 8th Edition advises evaluating the feasibility of recommendations as the next step to prioritize and plan implementation.

Extract from CGEIT Review Manual 8th Edition (Domain 1: Governance of Enterprise IT):"Following a benchmark analysis, the CIO should evaluate the feasibility of recommendations, considering factors such as cost, resource availability, organizational readiness, and alignment with strategic objectives. This assessment informs the prioritization and planning of implementation efforts." (Approximate reference: Domain 1, Section on Governance Framework Improvement)

Evaluating the feasibility of the recommendations (option A) ensures that the CIO selects recommendations that are viable and beneficial, setting the stage for planning and approval.

Why not the other options?

B. Obtain approval from the IT steering committee to implement the recommendations: Approval is needed but follows feasibility assessment to ensure informed decision-making.

C. Develop a plan to integrate the recommendations: Planning is premature without confirming which recommendations are feasible.

D. Appoint a project manager to implement the recommendations: Appointing a project manager is a later step, after feasibility and planning.

Concerns about unethical behavior, such as stealing confidential information, should be reported through established ethical reporting mechanisms to ensure impartiality and compliance with governance policies. The CGEIT Review Manual 8th Edition advises using ethics hotlines or similar channels to handle allegations of misconduct.

Extract from CGEIT Review Manual 8th Edition (Domain 1: Governance of Enterprise IT):"Allegations of unethical behavior, including the misuse of confidential information, should be reported through the enterprise’s ethics hotline or designated reporting channel. This ensures that concerns are handled impartially, in accordance with governance policies, and with appropriate escalation to senior management or the board." (Approximate reference: Domain 1, Section on Ethical Governance)

Reporting the concern to the ethics hotline (option B) is the best course of action, as it follows governance protocols, protects the IT director from retaliation, and ensures an independent investigation.

Why not the other options?

A. File a report with the local law enforcement agency: Involving law enforcement is premature without evidence and bypasses internal governance processes.

C. Discuss the concern with the chair directly: Confronting the chair risks escalation and lacks impartiality, potentially compromising the investigation.

D. Conduct an investigation to substantiate the chair’s activities: The IT director should not conduct an investigation personally, as this could compromise objectivity and governance protocols.

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.

When operating in a jurisdiction withstrict privacy regulations, the first and most effective step is toconsult the legal and compliance department. They can provide guidance to ensure full compliance with local laws, such as GDPR or other data protection mandates, reducing the risk of regulatory non-compliance.

While revising policies or implementing technical controls (e.g., SIEM, KRIs) is useful, legal compliance is foundational and dictates how other controls should be shaped.

Comprehensive and Detailed Explanation:

The CGEIT Review Manual 8th Edition, in its Governance of Enterprise IT domain, defines roles and responsibilities for information security. The data owner is accountable for ensuring the confidentiality, integrity, and availability (CIA) of information, as they have authority over specific data sets and define security requirements. For example, a data owner for customer data ensures access controls and data protection measures are in place. The manual likely references COBIT 2019’s APO14-Managed Data, which assigns CIA accountability to data owners.

Option B: Lead legal counsel advises on legal compliance, not CIA.

Option C: Risk manager oversees risk but not specific data accountability.

Option D: Data custodian implements controls but is not accountable for CIA.

Double Verification: The answer aligns with COBIT’s APO14 and the CGEIT domain’s focus on data roles. Data owner accountability is a standard ISACA principle.

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

COBIT 2019, APO14-Managed Data.

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