CGEIT Exam Dumps - Isaca Certification Questions and Answers

According to the CGEIT exam guide, ERM is the process of identifying, assessing, responding to and monitoring enterprise risks in alignment with the enterprise’s risk appetite and tolerance. ERM helps to ensure that the enterprise achieves its objectives and creates value for its stakeholders. To apply ERM practices consistently, IT staff need to have a common understanding of the ERM framework, principles, processes and tools that are used by the enterprise. Therefore, the most effective corrective action for an assessment that reveals inconsistent ERM practices by IT staff is to require ERM orientation sessions. These sessions can help to educate and train IT staff on the ERM concepts, terminology, roles and responsibilities, and best practices that are relevant to their work. The other options are not as effective as ERM orientation sessions, as they do not address the root cause of the inconsistency, which is the lack of ERM knowledge and awareness among IT staff. References: CGEIT Exam Candidate Guide, page 15. CGEIT Certification, Enterprise-risk-management practices: Where’s the evidence?

This is the best way for the CIO to ensure that the IT objectives are delivered effectively by IT staff, as it aligns their work with the business objectives, communicates the desired outcomes and behaviors, motivates and empowers them, monitors and measures their progress and achievements, and provides feedback and recognition1. This answer is supported by the CGEIT Review Manual (Digital Version) or CGEIT Review Manual (Print Version), Chapter 2: IT Resources, Section 2.1: IT Strategy Development and Maintenance, Subsection 2.1.3: IT Strategy Implementation, Page 64-65. It is also confirmed by a CIO article that states that “including the IT objectives in staff performance plans” is one of the best practices for aligning IT with business goals1. The other options are not as effective as option C, as they do not directly link the IT objectives with the IT staff’s performance and incentives. Option A may helpto standardize and benchmark the IT objectives, but it does not ensure that they are delivered by the IT staff. Option B may help to improve the IT staff’s skills and knowledge, but it does not ensure that they are aligned with the IT objectives. Option D may help to demonstrate the CIO’s commitment and authority, but it does not ensure that the IT staff are aware of and adhere to the IT objectives.

This is because IT is a key enabler and driver of business strategy, and it needs to understand and align with the strategic vision, goals, and priorities of the enterprise1. By ensuring IT has knowledgeable representation and is included in the strategic planning process, the enterprise can:

Leverage IT’s expertise and insights to identify and evaluate the opportunities and challenges of the strategy change1

Ensure IT’s readiness and capability to support and execute the strategy change1

Avoid any gaps or misalignments between IT and business expectations and requirements1

Foster a collaborative and supportive relationship between IT and business stakeholders1

B. Increase the IT budget and approve an IT staff level increase to ensure resource availability for the strategy change. This is not the first step to prepare for the change in the enterprise’s board of directors’ strategy, as it may be premature or unnecessary to do so without a clear understanding and agreement of the scope, impact, and implications of the strategy change. Increasing the IT budget and staff level may also create inefficiencies or wastages if they are not aligned with the actual needs and priorities of the strategy change2.

C. Initiate an IT service awareness campaign to business system owners and implement service level agreements (SLAs). This is not the first step to prepare for the change in the enterprise’s board of directors’ strategy, as it may not be relevant or effective to do so without a clear definition and communication of the strategy change. Initiating an IT service awareness campaign and implementing SLAs are more related to the delivery and management of IT services, rather than the planning and alignment of IT strategy3.

D. Outsource both IT operations and IT development and implement controls based on a standardized framework. This is not the first step to prepare for the change in the enterprise’s board of directors’ strategy, as it may introduce new risks and challenges for IT governance, such as loss of control, dependency, compatibility, security, compliance, and cost issues4. Outsourcing both IT operations and development may also reduce the involvement and ownership of IT in the strategic planning process, which could affect its alignment and responsiveness to the strategy change4. Outsourcing should be carefully considered and evaluated based on the specific needs and circumstances of the enterprise, and should be complemented by a robust governance and management framework4.

A periodic service provider audit is a process of conducting an independent and objective assessment of the service provider’s performance, quality, compliance, and security in relation to the agreed service level agreement (SLA) and the enterprise’s expectations and requirements. A periodic service provider audit can help provide quality of service oversight by:

Verifying and validating the service provider’s claims and credentials, and ensuring that they meet the contractual obligations and standards

Identifying and evaluating the strengths, weaknesses, opportunities, and threats of the service provider’s services, processes, and controls

Detecting and reporting any issues, gaps, or risks that may affect the quality of service delivery or the enterprise’s objectives and value

Recommending and implementing corrective and preventive actions to address and resolve the issues, gaps, or risks

Monitoring and measuring the outcomes and effectiveness of the corrective and preventive actions, and ensuring their alignment with the SLA

For Zero Trust architecture, which emphasizes "never trust, always verify,"evaluating the vendor’s security practices is critical. A thorough security assessment ensures that the vendor aligns with Zero Trust principles, such as identity verification, micro-segmentation, and continuous monitoring.

Although having a feature list and contracting template are important downstream activities, and benchmarking can help shortlist vendors, thecore of Zero Trust lies in trust minimization and verification. Hence, vetting a vendor's capability to enforce security controls is paramount.

Before any strategic direction can be set for AI initiatives,assessing the current AI capabilities and infrastructureis essential. This foundational step provides a baseline of where the organization currently stands, what assets or skills it possesses, and what gaps may exist.

Subsequent actions, such as developing use cases, forming teams, or crafting policies, rely heavily on this understanding. Without a proper assessment, strategic decisions may be misaligned with the organization’s actual readiness or capabilities.

 The CTO should first understand the enterprise’s risk tolerance before assessing the impact of wearable technology. This will help the CTO to align the assessment with the enterprise’s objectives, culture, and appetite for risk. The other options are important steps in the assessment process, but they are not the first ones. Creating an IT risk scorecard and prioritizing wearable technology risk require a clear understanding of the enterprise’s risk tolerance, which is the basis for defining risk criteria and thresholds. References := ISACA, CGEIT Review Manual, 7th Edition, Chapter 2: Strategic Management, Section 2.3: Risk Optimization, p. 63-64.

A vendor risk assessment is the most important consideration when integrating a new vendor with an ERP system, because it helps to identify and evaluate the potential risks or hazards associated with the vendor’s operations and products and their impact on the organization. A vendor risk assessment can cover aspects such as security, compliance, quality, reliability, performance, and contingency plans. By conducting a vendor risk assessment, the organization can mitigate the risks and ensure a smooth and secure integration with the ERP system. The other options are not as important as a vendor risk assessment, because they are either dependent on or secondary to it. IT senior management selects the vendor based on the results of the vendor risk assessment and other criteria. ERP data mapping is approved by the enterprise architect afterthe vendor risk assessment confirms that the vendor’s data is compatible and consistent with the ERP system. Procurement provides the terms of the contract after the vendor risk assessment validates that the vendor meets the organizational standards and obligations. References := Guide to Vendor Risk Assessment, 10 Risk Assessment Factors for ERP System Integration Projects, Ensuring Vendor Compliance and Third-Party Risk Mitigation

After receiving recommendations, thefirst logical step is to evaluate the feasibility—this includes assessing alignment with strategic goals, resource availability, risk tolerance, and operational impact.

Implementing or planning without a feasibility assessment may result in impractical or misaligned actions.

The primary role of the CEO in IT governance is establishing enterprise strategic goals. The CEO is responsible for setting the vision and strategic direction of the organization, which includes ensuring that IT governance aligns with and supports these broader objectives. While managing the risk governance process, evaluating ROI, and nominating IT steering committee membership are important, these are typically shared responsibilities or delegated to other roleswithin the organization. The CEO's leadership in defining the strategic goals is fundamental to guiding all aspects of IT governance and ensuring alignment with the business strategy.

Theprimary objective of outcome measuresis tomonitor whether the strategy is achieving its intended results. These measures evaluate the effectiveness and impact of the strategy after implementation, helping guide course corrections and value realization.

While clarifying strategy and governance are important,outcome measures are specifically about tracking success and performance results.

Comprehensive and Detailed Explanation:

The CGEIT Review Manual 8th Edition, in its Risk Optimization domain, emphasizes the importance of aligning IT risk management with the enterprise’s overall risk management strategy. Key risk indicators (KRIs) are metrics used to monitor potential risks and provide early warnings. To establish effective KRIs, the enterprise must first understand its risk tolerance and priorities.

Option A: The enterprise risk appetite should be identified first. Risk appetite defines the level of risk the enterprise is willing to accept in pursuit of its objectives, guiding the selection of KRIs. For example, if the enterprise has a low risk appetite for data breaches, KRIs might focus on metrics like unauthorized access attempts. Identifying risk appetite ensures KRIs are relevant and aligned with strategic goals. The manual likely references COBIT 2019’s APO12-Managed Risk, which highlights risk appetite as a foundational element of risk management.

Option B: Key performance metrics relate to performance, not risk, and are not directly relevant to KRIs.

Option C: Risk mitigation strategies are developed after identifying risks and KRIs, not before.

Option D: Enterprise architecture (EA) components may inform risk identification but are secondary to defining risk appetite.

Double Verification: The answer aligns with COBIT’s APO12 and the CGEIT domain’s focus on risk management foundations. Risk appetite is a prerequisite for KRI development in ISACA’s frameworks.

ISACA CGEIT Review Manual 8th Edition, Domain 4: Risk Optimization (focus on risk management and KRIs).

COBIT 2019, APO12-Managed Risk.

ISACA Glossary (for definitions of risk appetite and KRIs), available at https://www.isaca.org/resources/glossary.

According to the CGEIT exam content outline1, one of the subtopics under the domain of Risk Optimization is “Risk Ownership and Accountability”. This subtopic covers the process of assigning and communicating the roles and responsibilities for risk management to the appropriate stakeholders, such as business owners, process owners, or risk owners. Risk ownership is the best way to enable effective enterprise risk management (ERM), as it ensures that the risks are identified, assessed, treated, monitored, and reported by the people who have the authority, knowledge, and interest to manage them. Risk ownership also fosters a risk-aware culture and promotes accountability and transparency for risk management23.

The other options are not as effective as risk ownership to enable ERM. A risk register is a tool that records and tracks the information about the risks, such as their description, category, impact, likelihood, status, and action plan. A risk register is useful for documenting and communicating the risks, but it does not ensure that the risks are managed properly by the responsible parties4. A risk tolerance is a measure that defines the acceptable level of variation from the expected outcome or objective. A risk tolerance is important for setting the boundaries and criteria for risk management, but it does not guarantee that the risks are aligned with the business strategy and objectives5. A risk training is a program that provides education and awareness on risk management concepts, methods, and tools. A risk training is beneficial for enhancing the skills and competencies of the risk management staff and stakeholders, but it does not ensure that they perform their roles and responsibilities effectively6.

Comprehensive and Detailed Explanation:

The CGEIT Review Manual 8th Edition, in its Governance of Enterprise IT domain, emphasizes the role of enterprise architecture (EA) in ensuring IT investments align with business strategies. If EA is not being leveraged, governance processes must enforce its use during project execution.

Option B: Require EA review at key milestones is the best approach. Integrating EA reviews into project stage gates (e.g., design, implementation) ensures that IT investments adhere to the EA’s standards, principles, and roadmap. For example, a review might confirm that a new system aligns with the EA’s technology stack. The manual likely references COBIT 2019’s APO03-Managed Enterprise Architecture, which advocates for EA integration in project governance.

Option A: Form a team to update EA regularly is proactive but doesn’t enforce EA use in projects.

Option C: Publish and train on the EA document raises awareness but lacks enforcement.

Option D: Adopt a globally recognized EA framework is unnecessary if an EA exists, as the issue is leverage, not framework choice.

Double Verification: The answer aligns with COBIT’s EA governance processes and the CGEIT domain’s focus on project alignment. Milestone reviews are a standard ISACA practice for EA enforcement.

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

COBIT 2019, APO03-Managed Enterprise Architecture.

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

The chief information officer (CIO) is the senior executive who is responsible for the achievement of IT strategic objectives. The IT strategic objectives are the high-level goals and priorities that guide the IT vision, mission, and value creation for the organization. The CIO is responsible for:

Developing and communicating the IT strategy and aligning it with the business strategy and objectives

Managing and delivering the IT solutions, services, and projects that support and enable the business needs, requirements, and value drivers

Leading and overseeing the IT functions, resources, and capabilities, and ensuring their quality, efficiency, and effectiveness

Monitoring and reporting the IT performance and outcomes, and ensuring their alignment with the IT strategic objectives and value drivers

Implementing and maintaining the IT governance framework, policies, standards, and practices

The other options are not correct. The IT steering committee is a group of senior executives and stakeholders who provide guidance, direction, and oversight for the IT strategy and initiatives, but not responsible for their achievement. The business process owners are the individuals or groups who have an interest or influence in the business processes that are supported or enabled by IT, but not responsible for the achievement of IT strategic objectives. The board of directors is the highest governing body of the organization that sets the vision, mission, strategy, and objectives of the organization, as well as oversees its performance and value creation, but not responsible for the achievement of IT strategic objectives.