Isaca CGEIT Practice Test - Questions Answers, Page 53

A root cause analysis is the first step to identify the factors that are causing the loss of top talent and to devise appropriate solutions. A SWOT analysis, an incentive and retention program, and an aggressive talent acquisition program are possible outcomes of a root cause analysis, but they are not the first action to take.Reference:= CGEIT Review Manual, 7th Edition, page 103.

The frequency of IT services risk profile updates is a metric that measures how often the IT organization assesses and updates the risks associated with its services. This metric is useful to ensure that IT services meet business requirements, as it helps to identify and mitigate potential threats and vulnerabilities that could affect the availability, performance, reliability, and security of the services. A high frequency of IT services risk profile updates indicates that the IT organization is proactive and responsive to changing business needs and expectations. A low frequency of IT services risk profile updates suggests that the IT organization is reactive and complacent, and may not be aware of or prepared for emerging risks that could impact the business.Reference:=Performance Measurement Metrics for IT Governance - ISACA,The 8 IT service management metrics that matter most

Risk management is a crucial aspect of any cloud-based CRM system, as it involves identifying, assessing, and mitigating the potential risks that could affect the availability, performance, security, and compliance of the system. Before signing a contract for a new cloud-based CRM system, the CIO should ensure that the risk management responsibilities are clearly defined and allocated between the service provider and the customer, and that both parties accept and agree to them. This will help to avoid any confusion, conflict, or liability issues in case of any incidents or breaches that may occur in the future. Some of the risk management responsibilities that should be agreed upon and accepted are:

The scope and frequency of risk assessments and audits

The roles and responsibilities for risk monitoring and reporting

The escalation and resolution procedures for risk issues

The contingency and recovery plans for risk events

The security and privacy policies and standards for data protection

The service level agreements (SLAs) and key performance indicators (KPIs) for service quality and availability

The most efficient approach for using risk scenarios to evaluate a new business opportunity is to identify risk events from both bottom-up and top-down perspectives. This means that the risk identification process should consider both the specific details of the opportunity, such as the market, customer, product, service, technology, and resources involved, as well as the broader context of the opportunity, such as the strategic objectives, vision, mission, values, and culture of the organization. By using both bottom-up and top-down approaches, the risk identification process can capture a comprehensive and balanced view of the potential risks that could affect the success of the opportunity. This will help to create realistic and relevant risk scenarios that can be analyzed and evaluated for decision-making purposes. A bottom-up approach alone may miss some important risks that are related to the organization's strategy, governance, or environment, while a top-down approach alone may overlook some specific risks that are unique to the opportunity or its implementation. Therefore, a combination of both approaches is the most efficient way to use risk scenarios for evaluating a new business opportunity.Reference:=What is business risk? | McKinsey,How to Write Strong Risk Scenarios and Statements - ISACA,Finding your blind spots: Recognising emerging risks and opportunities

Managing resources as part of the portfolio strategy would best help to ensure the appropriate allocation of IT resources to support an enterprise's mission. This is because the portfolio strategy aligns the IT investments with the business goals and priorities, and ensures that the IT resources are allocated to the most valuable and strategic initiatives. By managing resources at the portfolio level, the enterprise can optimize the use of its IT resources across multiple programs and projects, and avoid resource conflicts, shortages, or wastages. A resource strategy as part of program management, prioritizing program requirements based on existing resources, and resource planning for each IT project are all useful practices, but they are not sufficient to ensure the appropriate allocation of IT resources at the enterprise level. They may only focus on the resource needs and constraints of specific programs or projects, and may not consider the overall alignment and optimization of IT resources with the enterprise's mission.Reference:=IT Portfolio Management: A Practitioner's Guide - ISACA,Resource Allocation Done Right: Best Practices for 2022 & Beyond,A Complete Guide to Resource Allocation in Projects - Float

Integrating IT security policies into individual performance objectives is the best way to support the objective of driving a cultural shift to enhance compliance with IT security policies.This is because performance objectives are specific, measurable, achievable, relevant, and time-bound (SMART) goals that define what each employee is expected to accomplish and how they will be evaluated1. By integrating IT security policies into performance objectives, the enterprise can:

Communicate the importance and value of IT security policies to each employee2

Motivate and incentivize employees to comply with IT security policies2

Monitor and measure employees' compliance with IT security policies2

Provide feedback and recognition to employees who comply with IT security policies2

Identify and address any gaps or issues in employees' compliance with IT security policies2

Integrating IT security policies into performance objectives can help to create a culture of accountability, responsibility, and awareness for IT security within the enterprise. It can also help to align the individual goals of employees with the organizational goals of IT governance.

The other options, communicating IT security policies on a regular basis, acknowledging and signing IT security policies by each employee, and centrally posting IT security policies with detailed instructions are not as effective as integrating IT security policies into performance objectives for supporting the objective of driving a cultural shift to enhance compliance with IT security policies. They are more related to the dissemination and implementation of IT security policies, rather than their integration and evaluation. They may not have a significant impact on the behavior and attitude of employees towards IT security policies, as they may not provide sufficient motivation, feedback, or recognition for compliance. They may also be perceived as passive, formal, or coercive methods of enforcing IT security policies, rather than active, informal, or collaborative methods of engaging employees in IT security policies.Reference:=Performance Objectives - SMART Goals - BusinessBalls,How to Integrate Security Into Employee Performance Objectives,IT Security Policy: Key Components & Best Practices for Every Business ...

The first thing that should be done to address the issue of duplicate support contracts and underutilization of IT services is to review the enterprise IT procurement policy.This is because the IT procurement policy is a document that defines the rules, guidelines, and procedures for acquiring and managing IT products and services in an organization1. A well-designed IT procurement policy can help to:

Align IT procurement with business strategy, objectives, and priorities1

Optimize IT spending and maximize IT value1

Ensure IT quality, security, and compliance1

Avoid IT duplication, waste, and inefficiency1

Define IT roles and responsibilities and assign accountability1

By reviewing the enterprise IT procurement policy, the organization can identify and address any gaps, issues, or inconsistencies that may have led to the problem of business divisions approaching technology vendors for cloud services without proper coordination or approval. The review can also help to update and improve the IT procurement policy to reflect the current and future needs and expectations of the organization and its stakeholders.Some of the best practices for developing an effective IT procurement policy are2:

Involve all relevant stakeholders in the policy development process

Conduct a thorough analysis of the current and future IT requirements

Establish clear criteria and standards for selecting and evaluating IT vendors and services

Implement a robust approval and authorization system for IT purchases

Incorporate risk management and contingency planning into the policy

Communicate and educate the policy to all employees and stakeholders

Monitor and measure the policy implementation and outcomes

The other options, re-negotiating contracts with vendors to request discounts, requiring updates to the IT procurement process, and conducting an audit to investigate utilization of cloud services are not as effective as reviewing the enterprise IT procurement policy for addressing the issue. They are more related to the implementation and execution of the IT procurement policy, rather than its design. They may also be reactive or corrective measures, rather than proactive or preventive ones. They may not address the root cause of the problem, which is the lack of a clear and comprehensive IT procurement policy that guides and governs the acquisition and management of IT products and services in the organization.

An IT summary dashboard is the best way for a CIO to provide progress updates on a newly implemented IT strategic plan to the board of directors, because it can help to communicate the key performance indicators (KPIs), benefits, risks, and issues of the IT strategic plan in a concise, visual, and interactive way. An IT summary dashboard can also help to align the IT strategic plan with the business strategy, value creation, and stakeholder expectations, and demonstrate the value and contribution of IT to the enterprise. Presenting IT critical success factors (CSFs), reporting results of key risk indicators (KRIs), and reporting results of stage-gate reviews are not as effective as presenting an IT summary dashboard, because they are more focused on specific aspects of the IT strategic plan, rather than providing a holistic and comprehensive overview.Reference:

IT Governance Dashboard, ISACA

What is an IT Dashboard?, Smartsheet

IT Strategy Dashboard, ClearPoint Strategy

This is because continuous testing of disaster recovery capabilities can help to evaluate and validate the effectiveness and efficiency of the disaster recovery plan, identify and address any gaps or issues, and implement any improvements or adjustments based on the lessons learned1.Continuous testing can also help to ensure that the disaster recovery plan is aligned with the current and future business needs and expectations, and that the disaster recovery team and stakeholders are familiar and prepared with their roles and responsibilities1.

B . Increased training and monitoring for disaster recovery personnel who perform below expectations. This is not the best way to enable the enterprise to accomplish the objective of improving its disaster recovery capabilities, as it only focuses on one aspect of the disaster recovery plan, which is the human factor.While training and monitoring are important for enhancing the skills and performance of the disaster recovery personnel, they are not sufficient to address the other aspects of the disaster recovery plan, such as the technology, process, and communication factors2. Moreover, increased training and monitoring may not be effective if they are not based on a clear and comprehensive assessment of the disaster recovery capabilities and outcomes.

C . Annual review and updates to the disaster recovery plan (DRP). This is not the best way to enable the enterprise to accomplish the objective of improving its disaster recovery capabilities, as it may not be frequent or timely enough to capture and respond to the changing business environment and requirements.An annual review and update may also be insufficient to test and validate the disaster recovery plan, as it may not cover all possible scenarios or situations that could occur in a real disaster3.A more agile and adaptive approach to reviewing and updating the disaster recovery plan is recommended, such as using a continuous improvement cycle or a stage-gate process4.

D . Increased outsourcing of disaster recovery capabilities to ensure reliability.This is not the best way to enable the enterprise to accomplish the objective of improving its disaster recovery capabilities, as it may introduce new risks and challenges for the enterprise, such as loss of control, dependency, compatibility, security, compliance, and cost issues5.Outsourcing some or all of the disaster recovery capabilities may also reduce the involvement and ownership of the enterprise's internal staff and stakeholders in the disaster recovery planning process, which could affect their commitment and readiness in case of a disaster5.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 framework5.