Isaca CGEIT Practice Test - Questions Answers, Page 51

An IT skills inventory is a list of the skills, competencies, and qualifications of the IT staff in an organization. It can help to identify the current and potential capabilities of the IT workforce, as well as the gaps and needs for improvement. An IT skills inventory would be most helpful to review when determining how to allocate IT resources during a resource shortage, because it can help to match the right people with the right tasks, optimize the utilization and productivity of the existing IT staff, and prioritize the critical and urgent IT activities. The other options are not as helpful as an IT skills inventory for allocating IT resources during a resource shortage. An IT strategic plan is a document that defines the vision, mission, goals, and objectives of the IT function and how they align with the business strategy. It can help to guide the direction and scope of the IT activities and investments, but it does not provide detailed information on the availability and suitability of the IT resources. An IT organizational structure is a diagram that shows the hierarchy, roles, and responsibilities of the IT staff in an organization. It can help to clarify the reporting lines and communication channels of the IT function, but it does not reflect the skills and competencies of the IT staff. An IT skill development plan is a document that outlines the learning and training opportunities for the IT staff to enhance their skills and competencies. It can help to improve the performance and career progression of the IT staff, but it does not address the immediate needs and challenges of allocating IT resources during a resource shortage.Reference:=What is an IT Skills Inventory?,How to Conduct an Effective Skills Gap Analysis,Resource allocation 101: How to manage your team's resources | Planio

Risk management is the process of identifying, analyzing, evaluating, and treating the uncertainties that may affect the achievement of objectives. Risk management helps to ensure that decisions are made with an awareness of probability and impact, which means that the likelihood and consequences of potential events are considered and weighed against the benefits and costs of the actions. This can help to optimize the risk-reward balance, enhance the quality and consistency of decision-making, and support the achievement of desired outcomes.Reference:

CGEIT Review Manual 2021, Chapter 2: IT Risk Management, Section 2.1: Risk Management Overview, page 551

CGEIT Review Questions, Answers & Explanations Manual 2021, Question 1, page 152

The Benefits of Risk Management - PMI3

This is because SLAs are contractual agreements that specify the expectations, responsibilities, and performance standards for both the service provider and the customer. SLAs can help to define controls that mitigate the risks of outsourcing, such as data security, quality, availability, reliability, compliance, and contingency. SLAs can also help to monitor and measure the performance and value of the outsourced services, as well as to establish mechanisms for reporting, escalation, and resolution of any issues or disputes.

Some of the sources that support this answer are:

1: This source provides a comprehensive guide on how to create a social media governance plan that covers the key elements of a social media policy, compliance management, security and risk mitigation, decision-making and approval workflow, and crisis management. It mentions that SLAs are one of the tools that can help to manage the risks of outsourcing social media activities to third parties.

2: This source discusses the gaps, risks, and opportunities of social media governance in the context of Australian public communication. It suggests that SLAs are one of the best practices for developing and implementing a social media strategy that aligns with the organizational goals and values, as well as the legal and ethical obligations.

3: This source explores the benefits and challenges of outsourcing IT services in the public sector. It emphasizes the importance of SLAs for defining the scope, quality, and cost of the outsourced services, as well as for managing the performance and accountability of the service providers.

4: This source presents a framework for managing IT outsourcing risks based on ISO 31000. It recommends that SLAs should include risk-related clauses that specify the roles and responsibilities of both parties, the risk identification and assessment methods, the risk response and treatment options, and the risk monitoring and reporting mechanisms.

This is because enterprise risk appetite is the amount and type of risk that an organization is willing and able to accept in pursuit of its objectives. It reflects the organization's risk culture, strategy, and values. When implementing an emerging technology with unclear regulatory and compliance requirements, the organization should consider its risk appetite and tolerance, as well as the potential benefits, costs, and impacts of the technology. The organization should also assess the likelihood and severity of the regulatory and compliance risks, and implement appropriate controls and mitigation measures to manage them within acceptable levels.

Some of the sources that support this answer are:

1: This source provides a comprehensive guide on how to navigate the hype and risk of emerging technologies. It suggests that organizations should define their risk appetite and tolerance for adopting emerging technologies, and conduct a balanced risk and benefit assessment before making any decisions.

2: This source discusses the challenges and best practices for mitigating emerging technology risk. It recommends that organizations should align their emerging technology strategy with their enterprise risk appetite, and establish a governance framework that covers the identification, evaluation, response, and monitoring of emerging technology risks.

3: This source defines enterprise risk appetite and explains its importance for effective risk management. It also provides some guidance on how to develop, communicate, and monitor enterprise risk appetite statements.

This is because alignment with business strategy means that IT projects are selected and executed in a way that supports the organization's vision, mission, goals, and objectives. Alignment with business strategy can help to ensure that IT projects deliver value to the organization and its stakeholders, as well as to optimize the use of IT resources and capabilities. Alignment with business strategy can also help to avoid or minimize conflicts, gaps, or redundancies among IT projects, as well as to facilitate communication and collaboration among IT and business units.

Some of the sources that support this answer are:

1: This source provides a comprehensive guide on how to optimize IT project intake, approval, and prioritization. It suggests that one of the steps to redesign the governance framework is to conduct a portfolio review to assess the benefits realization of IT investments and ensure that they are aligned with the business strategy and deliver value.

2: This source discusses how to prioritize IT tasks and projects, and provides some expert tips and a downloadable template. It advises that one of the criteria for prioritizing IT projects is strategic alignment, which means that the project supports the organization's strategic goals and objectives.

3: This source describes the process of how to use the Technology Governance Framework to determine if a proposal requires approval from a formal IT governance body, then how a submitted proposal would proceed on its path to acceptance. It states that one of the factors that influence the prioritization of proposals is alignment with strategic direction, which means that the proposal supports the organization's vision, mission, values, and goals.

This is because a business case is a document that provides the justification and rationale for initiating, continuing, or terminating a project or program. It describes the business problem or opportunity, the objectives and benefits, the costs and risks, the alternatives and assumptions, and the expected outcomes and value of the proposed solution. A business case is not a static document, but rather a dynamic one that should be updated throughout the life cycle of the project or program, as new information, changes, and feedback emerge. Updating the business case throughout its life cycle can help to ensure that the project or program remains aligned with the business strategy and goals, as well as to monitor and evaluate its performance and value delivery.

Some of the sources that support this answer are:

1: This source provides a comprehensive guide on how to write a business case, including its purpose, structure, content, and format. It also explains why it is important to update the business case throughout the project or program life cycle, as it can help to track progress, measure benefits, manage risks, and communicate results.

2: This source discusses the benefits and challenges of updating the business case during the project or program execution. It suggests that updating the business case can help to validate assumptions, verify feasibility, adjust scope, and justify changes. It also provides some tips and best practices for updating the business case effectively and efficiently.

3: This source defines what a business case is and how it can be used to support IT governance and decision-making. It states that a business case should be updated regularly throughout the project or program life cycle, as it can help to ensure alignment with the enterprise architecture (EA), assess risks and opportunities, and demonstrate value realization.

Standardization of technical platforms can help optimize infrastructure investments by reducing complexity, increasing interoperability, and enabling economies of scale.

According to the CGEIT Review Manual 2022, one of the benefits of standardization is that it ''optimizes infrastructure investments by reducing complexity and increasing interoperability and scalability.''

According to the Oracle article on the EA Roadmap to Rationalize, Standardize, and Consolidate IT Assets, standardized technology 'yields measurable cost savings through reduced software licenses and the elimination of redundant systems and skill sets.'1

To measure the value of IT-enabled investments, an enterprise needs to identify its drivers as defined by its business strategy. The business strategy is the document that defines the vision, mission, goals, and objectives of the enterprise and how they will be achieved. It also specifies the value proposition, competitive advantage, and target market of the enterprise. The drivers of value are the factors that influence or determine the value creation and delivery of the enterprise. They can include aspects such as customer satisfaction, revenue growth, cost reduction, innovation, quality, and efficiency. By identifying its drivers as defined by its business strategy, the enterprise can align its IT-enabled investments with its strategic priorities and expectations. It can also establish the criteria, metrics, and indicators for measuring and evaluating the value of IT-enabled investments in terms of their contribution to the business outcomes and performance.

The best way for a CIO to justify maintaining and supporting social media platforms is by demonstrating the value derived from investment in social media technologies. Social media platforms are not just tools for communication and entertainment, but also strategic assets that can create and deliver value to the organization and its stakeholders. Some of the potential benefits of social media platforms are:

Enhancing customer engagement, loyalty, and satisfaction by providing timely, personalized, and interactive content and feedback

Increasing brand awareness, reputation, and trust by showcasing the organization's values, achievements, and social responsibility

Improving innovation and collaboration by facilitating the exchange of ideas, knowledge, and feedback among employees, customers, partners, and experts

Supporting decision making and problem solving by providing access to relevant data, insights, and analytics

Reducing costs and increasing efficiency by streamlining processes, automating tasks, and optimizing resources