CGEIT Exam Dumps - Isaca Certification Questions and Answers

The best approach to address the concern of outdated internal processes is to map the processes to a capability maturity model (CMM). A CMM is a framework that describes the levels of maturity and capability of a process, from initial to optimized. Mapping the processes to a CMM can help the CIO to assess the current state and performance of the processes, as well as identify and prioritize the areas for improvement. Mapping the processes to a CMM can also help align the processes with the IT strategy and goals, as well as ensure compliance with standards and best practices. Software Capability Maturity Model (CMM) | IT Governance UK provides an overview of the CMM framework and its benefits.

Implementing a process review policy, assembling a project review team, and verifying that the processes are still needed are also possible steps to take to address the concern of outdated internal processes, but they are not the best approach. Implementing a process review policy is a measure that defines the frequency, scope, criteria, and methods for reviewing and updating the processes. Implementing a process review policy can help ensure the consistency and quality of the process review activities, as well as prevent future obsolescence or inefficiency of the processes. Assembling a project review team is a task that involves selecting and assigning the roles and responsibilities of the people who will conduct or participate in the process review activities. Assembling a project review team can help ensure the availability and suitability of the resources and skills for the process review activities, as well as facilitate the collaboration and communication among the stakeholders. Verifying that the processes are still needed is a question that evaluates the relevance and value of the processes for the enterprise’s objectives and operations. Verifying that the processes are still needed can help eliminate or simplify any unnecessary or redundant processes, as well as optimize or integrate any overlapping or interdependent processes.

The MOST important consideration when planning for long-term IT service delivery is the ability of the IT organization to sustain business requirements. A service-oriented IT organization model is one that focuses on delivering value and outcomes to the business through IT services that are aligned with business needs and expectations1. To achieve this, the IT organization must be able to adapt to the changing and growing demands of the business, as well as the advances in technology and innovation. The IT organization must also have the necessary resources, capabilities, processes, and governance mechanisms to ensure the quality, reliability, availability, security, and performance of the IT services2. Therefore, the ability of the IT organization to sustain business requirements is essential for long-term IT service delivery.

The other options are not as important as option D. While it is important to have the approval of the business, an IT risk management process, and a comprehensive service catalog, these are not sufficient to ensure long-term IT service delivery. They are rather means to achieve the end goal of satisfying and sustaining business requirements. References :=

Make the IT function service-oriented - @CIOPortfolio1

What is SOA (Service-Oriented Architecture)? | IBM

The best IT governance action to minimize the likelihood of IT failures jeopardizing the corporate value of an IT-dependent organization is to implement an IT risk management framework. An IT risk management framework is a set of policies, processes, and tools that help identify, analyze, evaluate, treat, monitor, and communicate the IT risks that may affect the achievement of the organization’s objectives and goals. An IT risk management framework can help reduce the probability and impact of IT failures, such as system outages, data breaches, cyberattacks, or project delays, by implementing appropriate controls and mitigation strategies. An IT risk management framework can also help align the IT risks with the organization’s riskappetite and tolerance, as well as ensure compliance with regulations and standards. What is IT Risk Management? | RSA provides an overview of IT risk management and its benefits.

Installing an IT continuous monitoring solution, defining IT performance management measures, and benchmarking IT strategy against industry peers are also useful IT governance actions, but they are not the best way to minimize the likelihood of IT failures. Installing an IT continuous monitoring solution is a process that uses software tools or systems to collect, analyze, and report on IT performance and compliance data, such as availability, reliability, security, or efficiency. Installing an IT continuous monitoring solution can help detect and respond to IT failures in a timely and effective manner, as well as improve the visibility and accountability of IT operations. Defining IT performance management measures is a task that involves selecting and defining the metrics that measure the achievement of specific goals or objectives for IT processes, systems, or services. Defining IT performance management measures can help evaluate and communicate the effectiveness and efficiency of IT operations, services, and projects, as well as their contribution to business value and customer satisfaction. Benchmarking IT strategy against industry peers is a technique that involves comparing and contrasting the IT practices, capabilities, or outcomes of an organization with those of its competitors or similar organizations. Benchmarking IT strategy against industry peers can help identify and adopt best practices or innovations for IT governance and management, as well as assess the strengths and weaknesses of the organization’s IT performance.

Data conversion is the process of transforming data from one format or system to another. It is a critical activity in any data migration or integration project, as it affects the quality, accuracy, and usability of the data. Therefore, IT governance should mandate that data conversion has documented approvals from business process data owners, who are the stakeholders responsible for defining and maintaining the data requirements, standards, and quality for their respective business processes. This ensures that the data conversion meets the business needs and expectations, as well as complies with the relevant policies and regulations. References:

CGEIT Review Manual 2021, Chapter 4: Resource Optimization, Section 4.2: Data Management, page 1651

CGEIT Review Questions, Answers & Explanations Manual 2021, Question 10, page 252

Data Conversion: Definition, Best Practices, and Examples3

Data Governance Roles and Responsibilities4

The first step to strengthen and enforce current data governance practices after a data leakage incident is to verify data owners. Data owners are the individuals or groups who have the authority and responsibility to define, classify, protect, and manage the data assets of an enterprise1. By verifying data owners, the enterprise can ensure that the data is properly accounted for, categorized, and secured according to its value, sensitivity, and risk. Data owners can also establish data policies, standards, and procedures, as well as monitor and report on data quality, usage, and compliance1. Verifying data owners is a prerequisite for assessing data security controls, reviewing data logs, and analyzing data quality, as these activities depend on the accurate identification and assignment of data ownership roles and responsibilities. References: CGEIT Review Manual (Digital Version) or CGEIT Review Manual (Print Version), Chapter 4: Risk Optimization, Section 4.2: IT Risk Management Process, Subsection 4.2.1: IT Risk Identification, Page 163-164. Top 10 Effective Data Governance Tools.

A business continuity plan (BCP) is the most important element for IT governance to have in place to ensure the enterprise can maintain operations during extensive system downtime. A BCP consists of the processes and procedures an organization needs to ensure its critical business processes continue operating during a disaster1. A BCP should include methods to ensure uninterrupted delivery of critical IT services, identify the resources needed, and outline manual workarounds. It should also contain policies, standards, procedures, and tools for responding to and preventing major incidents, as well as the IT architecture of the organization2. A BCP should be reviewed regularly and updated as needed.

References := Business continuity planning (BCP) - Learning Center, IT Business Continuity | DisasterRecovery.org, IT Governance Blog: free business continuity plan template

The PRIMARY purpose of an effective set of key risk indicators (KRIs) is to identify possible future adverse impacts on the enterprise. KRIs are metrics or indicators used by organizations to identify, assess, and monitor potential risks. KRIs show how risky a decision, activity, strategy, or plan may be for a business or company. KRIs can be used to monitor operational, technological, financial and staff processes, such as security breaches, economic downturn and staff turnover rate. KRIs are like alarms that alert businesses of changes in the level of risk exposure1. By identifying possible future adverse impacts on the enterprise, KRIs can help to:

Prevent or mitigate the negative consequences of risks, such as financial loss, operational disruption, reputational damage, legal liability, etc.

Enhance the decision-making and planning processes by providing relevant and timely information on risks

Align the risk management activities with the business objectives and expectations

Communicate and report the risk status and performance to stakeholders and regulators

Therefore, identifying possible future adverse impacts on the enterprise is the primary purpose of an effective set of KRIs.

1: Key Risk Indicators: Examples & Definitions - SolveXia

This should be identified first when creating an inventory of information systems and data related to the mobile app, as they are the individuals or groups who have the authority and responsibility to define, classify, protect, and manage the data assets of the enterprise1. By identifying the application and data owners, the enterprise can ensure that the data is properly accounted for, categorized, and secured according to its value, sensitivity, and risk. Application and data owners can also establish data policies, standards, and procedures, as well as monitor and report on data quality, usage, and compliance1. Identifying the application and data owners is a prerequisite for identifying the other options, such as data maintained by vendors, vendors and outsourced systems, and information classification scheme, as these depend on the accurate identification and assignment of data ownership roles and responsibilities.

Qualitative analysis is a method that uses subjective judgments and opinions to assess plausible risk scenarios that could result in reputational risk to the enterprise. Qualitative analysis can help identify the sources, causes, and impacts of reputational risk, as well as the likelihood and severity of such risk. Qualitative analysis can also involve stakeholder feedback, surveys, interviews, focus groups, and expert opinions to evaluate the reputation of the enterprise and its IT functions.

The other options are not the most likely methods to assess plausible risk scenarios that could result in reputational risk to the enterprise. Controls gap analysis is a method that compares the existing controls with the required controls to identify any deficiencies or weaknesses that could expose the enterprise to risk. Controls gap analysis can help improve the effectiveness and efficiency of IT processes and services, but it does not directly assess the reputational risk scenarios. Quantitative analysis is a method that uses numerical data and mathematical models to measure and evaluate risk scenarios. Quantitative analysis can help estimate the financial impact and probability of risk events, but it may not capture the intangible and subjective aspects of reputational risk. SWOT analysis is a method that evaluates the strengths, weaknesses, opportunities, and threats of an organization or a project. SWOT analysis can help identify the internal and external factors that affect the performance and success of the organization or the project, but it does not specifically assess the reputational risk scenarios.

For more information on qualitative analysis and reputational risk, you can refer to these web sources:

Qualitative Risk Analysis: What it is and how to implement it

Reputational Risk Management: A Framework for Measurement

Reputational Risk Management in IT Outsourcing: A Case Study

The risk profile of the enterprise is the most important thing to consider first when conducting a risk assessment in support of a new regulatory requirement, as it reflects the overall exposure and tolerance of the enterprise to various types of risks, such as strategic, operational, financial, or compliance risks. The risk profile of the enterprise can help determine the scope, objectives, and criteria of the risk assessment, as well as the prioritization and allocation of resources and efforts for risk identification, analysis, evaluation, and treatment. The risk profile of the enterprise can also help align the risk assessment with the enterprise’s strategy, goals, and values, as well as ensure consistency and integration with other risk management activities or processes.

Disruption to normal business operations, readiness of IT systems to address the risk, and cost burden to achieve compliance are also important things to consider when conducting a risk assessment in support of a new regulatory requirement, but they are not the first thing to consider. Disruption to normal business operations is a potential consequence or impact of the risk on the enterprise’s performance, productivity, or continuity. Disruption to normal business operations can be assessed and measured during the risk analysis or evaluation stage of the risk assessment, as well as mitigated or reduced during the risk treatment or response stage. Readiness of IT systems to address the risk is a factor that affects the capability or maturity of the enterprise’s IT infrastructure, applications, or services to comply with or support the new regulatory requirement. Readiness of IT systems to address the risk can be assessed and improved during the risk treatment or response stage of the risk assessment, as well as monitored and reported during the risk communication or review stage. Cost burden to achieve compliance is a factor that affects the feasibility or affordability of the enterprise’s actions or investments to comply with or support the new regulatory requirement. Cost burden to achieve compliance can be estimated and optimized during the risk treatment or response stage of the risk assessment, as well as balanced with the benefits or value of compliance.

The most important input for the development of a human resources strategy to address IT skill gaps is the technology direction of the enterprise, because this would help to identify the current and future IT capabilities and competencies that are required to support the enterprise’s vision, mission, goals, and objectives. The technology direction of the enterprise should consider the external and internal factors that influence the IT environment, such as market trends, customer demands, innovation opportunities, regulatory requirements, and business strategies12. The human resources strategy should align the IT staff development and retention plans with the technology direction of the enterprise, and ensure that the IT staff have the relevant skills, knowledge, and experience to deliver value and performance to the enterprise12. References := ISACA, CGEIT Review Manual, 7th Edition, 2019, page 25-26.

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 scope and stakeholders of the audit are the most important information to provide to the consultant before the audit begins, because they define the objectives, boundaries, and expectations of the audit. The scope and stakeholders of the audit are also part of the IT governance domain 1: Framework for the Governance of Enterprise IT1. References := 1: CGEIT Review Manual 2023, ISACA, page 23.

The first action taken by a newly formed IT governance committee to ensure reports are compliant with regulations and identify key IT risks should be to develop and monitor IT key risk indicator (KRI) triggers. IT KRIs are metrics that measure the likelihood and impact of IT-related risks on the enterprise’s objectives and goals. IT KRI triggers are thresholds or values that indicate when a risk is approaching or exceeding an acceptable level, requiring attention or action from the IT governance committee. Developing and monitoring IT KRI triggers can help the committee to identify, prioritize, and manage IT risks, as well as to ensure compliance with regulations and policies.

Directing the development of a reporting communication plan, training end users on regulation requirements, and implementing a mechanism to ensure reporting escalation are also important actions for the IT governance committee, but they are not the first step. A reporting communication plan is a document that defines the purpose, scope, format, frequency, audience, and distribution of IT reports, as well as the roles and responsibilities of the report creators and recipients. A reporting communication plan can help the committee to communicate effectively and efficiently with the stakeholders about IT performance, issues, and risks. Training end users on regulation requirements is a process that educates the end users on the rules and standards that apply to their use of IT systems and data, as well as the consequences of non-compliance. Training end users can help the committee to raise awareness and ensure adherence to regulations and policies. Implementing a mechanism to ensure reporting escalation is a procedure that defines the criteria, process, and channels for escalating IT reports to higher levels of authority or responsibility when necessary. Implementing a reporting escalation mechanism can help the committee to ensure timely and appropriate response and resolution of IT issues or risks.

References := Integrating KRIs and KPIs for Effective Technology Risk Management; Performance Measurement Metrics for IT Governance; State and Impact of Governance of Enterprise IT in Organizations: Key Findings of an International Study.

 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.