CGEIT Exam Dumps - Isaca Certification Questions and Answers

Internal audit is an independent and objective function that provides assurance and consulting services to the enterprise on the effectiveness and efficiency of its governance, risk management,and control processes1. By including internal audit as a stakeholder, the enterprise can benefit from its knowledge, expertise, and perspective on IT-related issues and risks, such as IT strategy alignment, IT performance measurement, IT value delivery, IT resource management, IT risk management, and IT compliance2. Internal audit can also provide input on the design, implementation, and evaluation of the IT governance framework, policies, standards, and procedures, as well as recommend improvements and best practices2. Therefore, internal audit provides input on relevant issues and control processes, which is the most important reason to include it as a stakeholder when establishing clear roles for the governance of IT.

The other options are not as important or accurate as option D. Internal audit does not have knowledge and technical expertise to advise on IT infrastructure, as this is not its primary role or responsibility. Internal audit is not accountable for the overall enterprise governance of IT, as this is the responsibility of the board of directors and senior management3. Internal audit does not implement controls over IT risks and security, as this is the responsibility of the IT function and other business units4.

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

 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.

 From an ethical standpoint, the enterprise should communicate the breach to customers, because they have a right to know that their personal data has been compromised and may be at risk of identity theft, fraud, or other malicious activity. Even if the data breach report is not mandatory in the relevant jurisdiction, the enterprise has a moral duty to respect the privacy and dignity of its customers, and to be transparent and accountable for its actions. Communicating the breach to customers can also help to preserve the trust and reputation of the enterprise, and to mitigate the potential legal and financial consequences of the breach. According to some data ethics experts, data breaches should be treated as public health issues, and organizations should adopt a proactive and responsible approach to inform and protect their customers12. Some examples of data breach communication best practices are: notifying customers as soon as possible, providing clear and accurate information about the nature and extent of the breach, explaining what actions the enterprise is taking to remedy the situation and prevent future incidents, offering assistanceand support to affected customers, such as identity protection services or credit monitoring, and apologizing sincerely and expressing commitment to data ethics34.

References :=

Data ethics: What it means and what it takes | McKinsey

The Skeleton of a Data Breach: The Ethical and Legal Concerns

Data breaches: A public health issue? | TheHill

How to Communicate a Data Breach Effectively - IT Governance Blog

Information ownership is the assignment of roles and responsibilities for data protection to individuals or groups within the organization. Information owners are accountable for ensuring that data is properly classified, secured, and used in accordance with the organization’s policies and standards. Information ownership facilitates governance oversight of data protection measures by providing clear lines of authority and accountability for data assets. References:

ISACA CGEIT Review Manual 2021, page 86: “Information ownership is the assignment of roles and responsibilities for the protection of information to individuals or groups within the enterprise.”

ISACA CGEIT Review Questions, Answers & Explanations Manual 2021, page 11, question 14: “The correct answer is A. Information ownership is the assignment of roles and responsibilitiesfor the protection of information to individuals or groups within the enterprise. Information owners are accountable for ensuring that information is properly classified, secured, and used in accordance with the enterprise’s policies and standards. Information ownership facilitates governance oversight of data protection measures by providing clear lines of authority and accountability for information assets.”

 The MOST effective way for the CIO to ensure that the new IT objectives are cascaded to IT personnel is to define individual performance measures related to the IT objectives. Cascading goals is a framework to get everyone in an organization aligned with the big picture organizational goal, and to make sure they know what to do by breaking strategy into clear tasks and deliverables1. By defining individual performance measures related to the IT objectives, the CIO can:

Communicate the expectations and priorities of the IT function to each IT staff member2

Link the individual goals and activities to the IT objectives and the organizational strategy3

Motivate and empower the IT staff to take ownership and responsibility for their work4

Monitor and evaluate the progress and performance of the IT staff and provide feedback and recognition5

The other options are not as effective as option B. While it is important to communicate the new IT objectives, establish IT management’s performance measures, and update the IT balanced scorecard, these are not sufficient to ensure that the IT objectives are cascaded to IT personnel. They are rather means to achieve the end goal of aligning and measuring the IT objectives at different levels of the organization. They do not necessarily translate into clear and specific actions and outcomes for each individual IT staff member.

 Service level agreements (SLAs) are the most important consideration when developing a new IT service, because they define the expectations and obligations of both the service provider and the service consumer. SLAs specify the scope, quality, availability, performance, and security of the IT service, as well as the roles and responsibilities, escalation procedures, and penalties for non-compliance. SLAs help to ensure that the IT service meets the business needs and objectives of the service consumer, and that the service provider delivers the IT service in a consistent and reliable manner. SLAs also provide a basis for measuring and improving the IT service delivery and management processes. References := CGEIT Review Manual, Chapter 3: Benefits Realization, Section 3.2: IT Value Delivery Processes, Subsection 3.2.1: IT Service Delivery, Page 93.

The change management control framework is the first IT governance action to correct the problem of declining code quality and security flaws, as it defines and implements the policies, procedures, and standards for managing changes to the IT systems and software. The change management control framework also ensures that changes are authorized, tested, documented, and deployed in a consistent and secure manner12. A review of the change management control framework can help to identify and address the root causes of the security breach, and to prevent or mitigate similar incidents in the future. References := CGEIT Exam Content Outline, Domain 1, Subtopic C: Technology Governance, Task 3: Ensure that IT processes are compliant with relevant laws, regulations and contractual requirements.

A business impact analysis (BIA) report is the most valuable input when quantifying the loss associated with a major risk event. A BIA report is a document that identifies and evaluates thepotential effects of disruptions to critical business functions and processes. A BIA report can help estimate the financial, operational, reputational, and legal impacts of a risk event, as well as the recovery time and resources needed to resume normal operations. A BIA report can also help prioritize the recovery strategies and objectives based on the criticality and urgency of the business functions and processes.

The other options are not the most valuable input when quantifying the loss associated with a major risk event. Key risk indicators (KRIs) are metrics that provide an early warning of potential threats to the organization’s objectives and performance. KRIs can help monitor and measure the risk exposure and effectiveness of risk management activities, but they do not directly quantify the loss associated with a risk event. IT environment threat modeling is a technique that identifies and analyzes the possible vulnerabilities and attack vectors in an IT system or network. Threat modeling can help improve the security and resilience of IT assets and services, but it does not directly quantify the loss associated with a risk event. Recovery time objectives (RTOs) are the maximum acceptable time frames for restoring business functions and processes after a disruption. RTOs can help determine the recovery priorities and strategies, but they do not directly quantify the loss associated with a risk event.

For more information on BIA and quantifying loss, you can refer to these web sources:

What is Business Impact Analysis? Definition, Benefits & Examples

Quantifying Loss Associated with Major Risk Event - Exam-Answer

Quantifying the Qualitative Technology Risk Assessment - ISACA

 Information ownership is the right and responsibility to define, classify, protect, and manage the data assets of an enterprise. When using a cloud-based application, the enterprise should ensure that it retains the ownership and control of its information, and that it complies with the relevant laws and regulations regarding data privacy, security, and sovereignty12. The enterprise should also establish clear policies and agreements with the cloud service provider and the internal and external parties regarding the access, usage, storage, transfer, retention, and disposal of the information12. By considering information ownership, the enterprise can mitigate the risks and challenges of using a cloud-based application, such as data breaches, unauthorized access, vendor lock-in, legal disputes, or reputational damage12.

The other options are not as important as information ownership, as they are secondary or dependent factors. Cloud implementation model is the type of cloud service that the enterprise chooses to use, such as software as a service (SaaS), platform as a service (PaaS), or infrastructure as a service (IaaS)3. Cloud implementation model can affect the cost, performance, scalability, and flexibility of the cloud-based application, but it does not directly affect the ownership and governance of the information3. User experience is the perception and satisfaction of the users when interacting with the cloud-based application. User experience can affect the adoption, engagement, and productivity of the users, but it does not directly affect the ownership and governance of the information. Third-party access rights are the permissions and restrictions that the enterprise grants to external parties to access and use its information through the cloud-based application. Third-party access rights can affect the security and privacy of the information, but they are determined by the information ownership policies and agreements that the enterprise establishes with the cloud service provider and the external parties12.

The CIO should first meet with key stakeholders to understand their concerns about the IT governance reporting transparency. This will help the CIO to identify the root causes of the perception, the expectations and needs of the stakeholders, and the gaps and issues in the current reporting process. Meeting with key stakeholders will also help to build trust and rapport, and to solicit feedback and suggestions for improvement. The CIO can then use this information to develop a communication and awareness strategy, adopt a standard template, and add transparency metrics to the balanced scorecard. These actions will help to enhance the transparency, consistency, and quality of the IT governance reporting, and to address the stakeholder concerns effectively. References := How Boards Realise IT Governance Transparency: A Study Into Current Practice of the COBIT EDM05 Process, Page 1.

A data classification policy is a set of rules and standards that define how data is categorized and labeled according to its sensitivity, value, and criticality for the organization1. An effective data classification policy helps to ensure that data is properly protected, accessed, and managed throughout its lifecycle2. The best way to support the implementation of an effective data classification policy is to have clear guidelines adopted by the business, because they provide a common understanding and framework for data owners, stewards, and users to classify and handle data according to the business context and requirements3. Clear guidelines also help to ensure consistency, compliance, and accountability for data classification across the organization4.

References :=

Data Classification Policy | Information Security Office

Data Governance and Classification Policy - University of Cincinnati

Data governance processes - Cloud Adoption Framework

Data classification in the Microsoft Purview governance portal

A cost-benefit analysis is a process that compares the costs and benefits of a decision or an action, such as outsourcing non-core IT processes. A cost-benefit analysis can help the enterprise evaluate the feasibility, profitability, and sustainability of outsourcing, as well as identify the potential risks and opportunities. A cost-benefit analysis can also help the enterprise determine the optimal level and scope of outsourcing, and select the most suitable outsourcing partner. A cost-benefit analysis should be the first step before issuing a formal request for proposal, establishing service level metrics, or updating resource allocation policies. References :=

The Outsourcing Handbook A guide to outsourcing - Deloitte United Kingdom, page 10

Five Tips For Outsourcing Business Processes Effectively In 2021 - Forbes

The main responsibility of the board of directors regarding the management of enterprise risk is to ensure a risk process exists which addresses the risk appetite, because this would help the board to oversee and direct the enterprise’s risk management activities and ensure that they are aligned with the enterprise’s strategic objectives and value creation. The risk process should include identifying, assessing, responding, monitoring, and reporting the risks that may affect the enterprise’s performance and outcomes, and ensuring that the risks are within the acceptable level that the enterprise is willing and able to tolerate12. The other options are not the main responsibility of the board of directors, because they are either part of or dependent on the risk process.

because this would help the enterprise to comply with privacy laws and regulations by identifying and labeling the data according to its sensitivity, confidentiality, and protection requirements. Data classification can help the enterprise to apply the appropriate security controls, access rights, retention policies, and disposal methods for the data, and to prevent unauthorized or unlawful use, disclosure, or breach of the data12. Data classification can also help the enterprise to demonstrate its accountability and transparency for the data processing activities, and to meet the expectations and rights of the data subjects12.