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| Section | Weight | Objectives |
|---|---|---|
| Risk Optimization | 20% | - Risk identification, assessment and evaluation - Risk monitoring and reporting - Risk response and mitigation strategies - IT risk management framework |
| Benefit Realization | 20% | - Optimization of investments and outcomes - Value delivery and benefits identification - Benefit measurement and monitoring - Business case development and management |
| Resource Optimization | 15% | - IT resource planning and allocation - Resource performance and efficiency - Sourcing and vendor management - Human, financial and infrastructure resources |
| Strategic Management | 20% | - Strategic planning and governance integration - IT strategy development and alignment - Investment and portfolio management - Enterprise architecture and technology roadmaps |
| Framework for the Governance of Enterprise IT | 25% | - Principles, concepts and components of governance - Alignment with enterprise goals and strategies - Governance assurance and continuous improvement - Development and implementation of governance frameworks |
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NEW QUESTION # 582
An enterprise wants to establish key risk indicators (KRIs) in an effort to better manage IT risk. Which of the following should be identified FIRST?
Answer: A
Explanation:
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.
NEW QUESTION # 583
You are the project manager of a large construction project. You are evaluating the strengths, weaknesses, opportunities, and threats involved in a project. In which of the following processes are you on?
Answer: D
NEW QUESTION # 584
An enterprise is planning a transformation initiative by leveraging emerging technology that will have a significant impact on existing products and services Which of the following is the BEST way for IT to prepare for this change?
Answer: C
Explanation:
The best way for IT to prepare for a transformation initiative by leveraging emerging technology that will have a significant impact on existing products and services is to assess the impact on the existing IT strategy. An IT strategy is a plan that defines how IT will support the business strategy and objectives, and how IT will deliver value to the enterprise1. By assessing the impact of the emerging technology on the existing IT strategy, IT can determine whether the current IT vision, mission, goals, and capabilities are aligned with the transformation initiative, and whether they need to be revised or updated2. Assessing the impact of the emerging technology on the existing IT strategy also helps IT to identify and prioritize the opportunities, challenges, and risks that the emerging technology may bring, and to develop appropriate solutions and responses3. Assessing the impact of the emerging technology on the existing IT strategy also helps IT to communicate and collaborate with the business stakeholders, and to ensure that the IT investments are aligned with the business needs and expectations4.
References := IT Strategy: What is it?, How to create an effective IT strategy in 2022, Emerging Technology Strategy: A Guide for CIOs, Maximizing Emerging Technology Adoption Benefits - Gartner
NEW QUESTION # 585
An IT department outsourced application support and negotiated service level agreements (SLAs) directly with the vendor Although the vendor met the SLAs business owner expectations are not met and senior management cancels the contract This situation can be avoided in the future by:
Answer: D
Explanation:
Assigning responsibility for vendor management is the best way to avoid the situation where the IT department outsourced application support and negotiated service level agreements (SLAs) directly with the vendor, but the business owner expectations were not met and senior management cancelled the contract. Vendor management is the process of managing the relationship with a supplier, also known as a vendor or a third party1. Vendor management involves selecting, contracting, monitoring, evaluating, and communicating with vendors to ensure that they deliver the goods and services that meet the business needs and objectives1. Assigning responsibility for vendor management helps to ensure that there is a clear and consistent governance structure, strategy, and policy for working with vendors2. It also helps to align the expectations and interests of all the stakeholders involved, such as the IT department, the business owners, and the senior management2. Assigning responsibility for vendor management also helps to avoid duplication of efforts, conflicts of interest, or gaps in oversight that could result in poor vendor performance, dissatisfaction, or risk exposure2.
NEW QUESTION # 586
Which of the following is a way of delivering value to customers by facilitating outcome that customers wish to get without the control of specific costs and risks?
Answer: A
NEW QUESTION # 587
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