When determining the optimal IT service levels to support business, which of the following is MOST important?

IT capacity utilization and availability.

Which of the following is MOST important when an IT-enabled business initiative involves multiple business functions?

Establishing a steering committee with business representation

Defining cross-departmental budget allocation

Conducting a systemic risk assessment

Developing independent business cases

Establishing a steering committee with business representation

A recent benchmarking analysis has indicated an IT organization is retaining more data and spending significantly more on data retention than its competitors. Which of the following would BEST ensure the optimization of retention costs?

Revalidating the organization's risk tolerance and re-aligning the retention policy

Requiring that all business cases contain data deletion and retention plans

Revalidating the organization's risk tolerance and re-aligning the retention policy

Moving all high-risk and medium-risk data backups to cloud storage

Redefining the retention policy to align with industry best practices

Which of the following MOST effectively prevents an IT system from becoming technologically obsolete before its planned return on investment (ROi)?

Ensuring that the system is maintained in compliance with enterprise architecture (EA) standards

Requesting periodic third-party assessments of the system throughout its life

Obtaining long-term support commitments from the system platform vendors)

Obtaining independent assurance that the system will conform to future business requirements

Ensuring that the system is maintained in compliance with enterprise architecture (EA) standards

The board of a start-up company has directed the CIO to develop a technology resource acquisition and management policy. Which of the following should be the MOST important consideration during the development of this policy?

Organizational knowledge retention

When developing effective metrics for the measurement of solution delivery, it is MOST important to:

establish project controls and monitoring objectives.

perform an objective analysis of the project roadmap.

establish the objectives and expected benefits.

specify quantitative measures for solution delivery.

Which of the following is the BEST indication of effective IT-business strategic alignment?

Business management is involved as IT strategies are developed.

IT senior management is required to report to the board.

Business strategy is documented to allow IT architecture to be designed quickly.

IT-business collaboration results in a strategy focused on IT cost reduction.

The BEST way to manage an outsourced vendor relationship is by:

analyzing performance statistics from the vendor.

conducting periodic risk assessments.

reviewing annual independent third-party reports.

providing clear objectives and transparency.

analyzing performance statistics from the vendor.

Which of the following BEST reflects mature risk management in an enterprise?

Responsive risk awareness culture

A regularly updated risk register

Ongoing investment in risk mitigation

Responsive risk awareness culture

An enterprise is initiating efforts to improve system availability to mitigate IT risk to the business. Which of the following results would be MOST important to report to the CIO to measure progress?

Incident severity and downtime trend analysis

Probability and seventy of each IT risk

Financial losses and bad press releases

Customer and stakeholder complaints over time

Which of the following is the BEST way for a CIO to secure support for a strategy to achieve long-term IT objectives?

Meet with stakeholders to explain the strategy and incorporate feedback.

Make the necessary strategic decisions and notify staff accordingly.

Develop tactics to implement the strategy and share with stakeholders.

Develop a communication plan for distribution of information to staff.

Meet with stakeholders to explain the strategy and incorporate feedback.

Two large financial institutions with different corporate cultures are engaged in a merger. From a governance perspective, which of the following should be the GREATEST concern?

Enterprise architecture (EA) integration

A healthcare enterprise that is subject to strict compliance requirements has decided to outsource several key IT services to third-party providers. Which of the following would be the BEST way to assess compliance and avoid reputational damage?

Exercise the right to perform an audit.

Require quarterly reports from the providers demonstrating compliance.

Require documentation that the providers have adequate controls in place.

Exercise the right to perform an audit.

Impose monetary penalties for noncompliance.

An enterprise plans to expand into new markets in countries lacking data privacy regulations, increasing risk exposure. Which of the following is the BEST course of action for the CIO?

Identify business risk appetite and tolerance levels.

Quantify the risk impact and evaluate possible countermeasures.

Limit the personal data available to the high-risk countries.

Mandate the strengthening of user access controls.

Which of the following are PRIMARY factors in ensuring the success of an enterprise quality assurance program?

Enterprise risk appetite and tolerance

Risk management and control frameworks

A process maturity framework and documented procedures

Which of the following is the BEST way to demonstrate that IT strategy supports a new enterprise strategy?

Map IT programs to business goals.

Monitor new key risk indicators (KRIs).

Measure return on IT investments against balanced scorecards.

Review and update the portfolio management process.

Map IT programs to business goals.

An enterprise's board of directors can BEST manage enterprise risk by:

requiring the establishment of an enterprise risk management (ERM) framework.

mandating board-approved enterprise risk management (ERM) modifications.

requiring the establishment of an enterprise risk management (ERM) framework.

requiring the establishment of an enterprise-wide program management office.

ensuring the cost-effectiveness of the internal control system.

A strategic IT-enabled investment is failing due to unforeseen technology problems. What should be the board of directors' FIRST course of action?

Assess the business risk and options.

Approve an investment budget increase.

Revise the investment selection process.

Which of the following MUST be established before implementing an information architecture that restricts access to data based on sensitivity?

Probability and impact analysis

A CEO is concerned that IT costs have significantly exceeded budget without resulting benefits. The root causes are an overlap of IT projects and a lack of alignment with business demands. Which of the following would BEST enable remediation of this situation?

Require IT business cases be approved by the board of directors.

Assign a set of key risk indicators (KRIs) to each new IT project.

Conduct a performance assessment of IT projects.

Implement an IT portfolio management policy.

Senior management wants to expand offshoring to include IT services as other types of business offshoring have already resulted in significant financial benefits for the enterprise. The CIO is currently midway through a successful five-year strategy that relies heavily on internal IT resources. What should the CIO do NEXT?

Reevaluate the current IT strategy.

Reevaluate the offshoring strategy.

Abandon the current IT strategy.

Continue with the existing IT strategy.

Reevaluate the current IT strategy.

Which of the following is the BEST way to ensure the continued usefulness of IT governance reports for stakeholders?

Establish a standard process for providing feedback.

Conduct quarterly audits and adjust reporting based on findings.

Establish a standard process for providing feedback.

Rely on IT leaders to advise when adjustments should be made.

Issue frequent service level satisfaction surveys.

The use of an IT balanced scorecard enables the realization of business value of IT through:

outcome measures and performance drivers.

business value and control mechanisms.

outcome measures and performance drivers.

financial measures and investment management.

vision and alignment with corporate programs.

The CEO of a large enterprise has announced me commencement of a major business expansion that will double the size of the organization. IT will need to support the expected demand expansion. What should the CIO do FIRST?

Update the IT strategic plan to align with the decision.

Review the resource utilisation matrix.

Recruit IT resources based on the expansion decision.

Embed IT personnel in the business units.

Update the IT strategic plan to align with the decision.

An enterprise has been focused on establishing an IT risk management framework. Which of the following should be the PRIMARY motivation behind this objective?

Promoting responsibility throughout the enterprise for managing IT risk.

Increasing the enterprise's risk tolerance level and risk appetite.

Engaging executives in examining IT risk when developing policies.

Maintaining a complete and accurate risk registry to belief manage IT risk

Which of the following is MOST important for the effective design of an IT balanced scorecard?

Identifying appropriate key performance indicators (KPls)

On-demand reporting and continuous monitoring

Emphasizing the financial results

Identifying appropriate key performance indicators (KPls)

An IT audit report indicates that a lack of IT employee risk awareness is creating serious security issues in application design and configuration. Which of the following would be the BEST key risk indicator (KRI) to show progress in IT employee behavior?

Results of application security testing

Number of IT employees attending security training sessions

Results of application security testing

Number of reported security incidents

Results of application security awareness training quizzes

A strategic systems project was implemented several months ago. Which of the following is the BEST reference for the IT steering committee as they evaluate its level of success?

Stakeholder satisfaction surveys B The project's net present value (NPV)

Operating metrics of the new system

Which of the following is the MOST important reason for selecting IT key risk indicators (KRIs)?

Demonstrating the effectiveness of IT risk policies

Assessing the current IT controls model

Enabling comparison against similar IT KRIs

Increasing the probability of achieving IT goals

A large organization with branches across many countries is in the midst of an enterprise resource planning (ERP) transformation. The IT organization receives news that the branches in a country where the impact to the enterprise is to be greatest are being sold. What should be the NEXT step?

Update the ERP business case and re-evaluate the ROI.

Cancel the ERP transformation and re-allocate project funds.

Adjust the ERP implementation plan and budget.

Continue with the ERP migration according to plan.

A marketing enterprise is considering procuring customer information to more accurately target customer communications and increase sales. The data has a very high cost to the enterprise. Which of the following would provide the MOST comprehensive view into the potential value to the organization?

Net present value {NPV) calculation

Investment services board review

Net present value {NPV) calculation

Which of the following provides the BEST assurance on the effectiveness of IT service management processes?

Performance of incident response

Compliance with internal controls

A rail transport company has the worst on-time arrival record in the industry due to an antiquated IT system that controls scheduling. Despite employee resistance, an initiative lo upgrade the technology and related processes has been approved. To maximize employee engagement throughout the project, which of the following should be in place prior to the start of the initiative?

Organizational change management plan

Isaca CGEIT Practice Test 4 - Free Online Exam Questions 121-160

An audit report has revealed that data scientists are analyzing sensitive 'big data' files using an offsite cloud because corporate servers do not have the necessary processing capabilities. A review of policies indicates this practice is not prohibited. Which of the following should be the FIRST strategic action to address the report?

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Isaca CGEIT Practice Test 4

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