Isaca CGEIT Practice Test - Questions Answers, Page 54

The most efficient way for an IT transformation project manager to communicate the project progress with stakeholders is to include key performance indicators (KPIs) in a monthly newsletter.This is because KPIs are measurable values that indicate how well the project is achieving its objectives and delivering value to the business1. By including KPIs in a monthly newsletter, the project manager can:

Provide a concise, clear, and consistent overview of the project status and results to the stakeholders2

Highlight the project achievements, challenges, and opportunities2

Demonstrate the alignment of the project with the business strategy, goals, and priorities2

Solicit feedback and suggestions from the stakeholders2

Foster a sense of engagement and collaboration among the stakeholders2

A monthly newsletter is an efficient communication channel, as it can reach a large and diverse audience of stakeholders, such as senior executives, business managers, IT staff, customers, and partners. It can also be easily distributed and accessed through email or intranet. A monthly frequency is appropriate for communicating the project progress, as it can provide timely and relevant information without overwhelming or distracting the stakeholders.

The other options, establishing governance forums within project management, sharing the business case with stakeholders, and posting the project management report to the enterprise intranet site are not as efficient as including KPIs in a monthly newsletter for communicating the project progress with stakeholders. They are more related to the planning and execution of the project, rather than its communication. They may also be too formal, detailed, or infrequent for some stakeholders who may prefer a more informal, concise, or frequent view of the project progress.

This is because IT is a key enabler and driver of business strategy, and it needs to understand and align with the strategic vision, goals, and priorities of the enterprise1. By ensuring IT has knowledgeable representation and is included in the strategic planning process, the enterprise can:

Leverage IT's expertise and insights to identify and evaluate the opportunities and challenges of the strategy change1

Ensure IT's readiness and capability to support and execute the strategy change1

Avoid any gaps or misalignments between IT and business expectations and requirements1

Foster a collaborative and supportive relationship between IT and business stakeholders1

B . Increase the IT budget and approve an IT staff level increase to ensure resource availability for the strategy change. This is not the first step to prepare for the change in the enterprise's board of directors' strategy, as it may be premature or unnecessary to do so without a clear understanding and agreement of the scope, impact, and implications of the strategy change.Increasing the IT budget and staff level may also create inefficiencies or wastages if they are not aligned with the actual needs and priorities of the strategy change2.

C . Initiate an IT service awareness campaign to business system owners and implement service level agreements (SLAs). This is not the first step to prepare for the change in the enterprise's board of directors' strategy, as it may not be relevant or effective to do so without a clear definition and communication of the strategy change.Initiating an IT service awareness campaign and implementing SLAs are more related to the delivery and management of IT services, rather than the planning and alignment of IT strategy3.

D . Outsource both IT operations and IT development and implement controls based on a standardized framework.This is not the first step to prepare for the change in the enterprise's board of directors' strategy, as it may introduce new risks and challenges for IT governance, such as loss of control, dependency, compatibility, security, compliance, and cost issues4.Outsourcing both IT operations and development may also reduce the involvement and ownership of IT in the strategic planning process, which could affect its alignment and responsiveness to the strategy change4.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 framework4.

The primary consideration for an enterprise when deciding whether to adopt a qualitative risk assessment method is:

The level of detail and accuracy required for the risk assessment. Qualitative risk assessment is a method that uses scenarios, subjectivity, and knowledge to evaluate risks.It does not provide specific objective measurements of exposure, but rather a relative ranking or rating of risks based on their likelihood and impact1.Qualitative risk assessment is suitable for situations where the data is scarce, uncertain, or incomplete, or where the risk assessment needs to be done quickly and easily1.However, qualitative risk assessment may also be biased, inconsistent, or inaccurate, as it depends on the judgment and experience of the risk assessors1. Therefore, an enterprise should consider the level of detail and accuracy required for the risk assessment before choosing a qualitative method.If the enterprise needs more precise and reliable estimates of risk exposure, it may opt for a quantitative method instead1.

The other options are not the primary consideration for an enterprise when deciding whether to adopt a qualitative risk assessment method. The method identifies areas to immediately address vulnerabilities, enables an analysis of recommended controls, and provides a platform for all departments to contribute to the risk assessment are all possible benefits or outcomes of using a qualitative risk assessment method, but they are not the main factor that influences the decision to use it.They may also apply to other methods of risk assessment, such as quantitative or hybrid methods2.

This is because training metrics are measurable values that indicate the effectiveness and impact of the training programs on the IT staff's knowledge, skills, and performance1. By embedding training metrics into the annual performance appraisal process, the CIO can:

Communicate the importance and value of IT-related training to the IT management team and direct employees2

Motivate and incentivize the IT management team and direct employees to participate in and complete the IT-related training2

Monitor and evaluate the IT management team and direct employees' progress, achievement, and improvement in the IT-related training2

Provide feedback and recognition to the IT management team and direct employees who excel in the IT-related training2

Identify and address any gaps or issues in the IT-related training or its outcomes2

Embedding training metrics into the annual performance appraisal process can help to create a culture of learning, development, and accountability for IT-related training within the organization. It can also help to align the individual goals of the IT management team and direct employees with the organizational goals of IT governance.

The other options, developing training programs based on results of an IT staff survey of preferences, promoting IT-specific training awareness program, and researching and identifying training needs based on industry trends are not as effective as embedding training metrics into the annual performance appraisal process for ensuring that IT-related training is taken seriously by the IT management team and direct employees. They are more related to the design and delivery of the IT-related training, rather than its integration and evaluation. They may also not have a significant impact on the behavior and attitude of the IT management team and direct employees towards IT-related training, as they may not provide sufficient motivation, feedback, or recognition for participation or completion.

Final approval for accepting the associated IT risk should be obtained from the business sponsor.This is because the business sponsor is the person or group who initiates, funds, and owns the business case for the mobile sales channel project1.The business sponsor is responsible for defining the business objectives, benefits, and requirements of the project, and for ensuring its alignment with the enterprise strategy1.The business sponsor is also accountable for the outcomes and value of the project, and for managing the risks and issues that may affect its success1. Therefore, the business sponsor should have the authority and responsibility to approve the IT risk associated with the mobile sales channel project, as it may impact the business performance and value.

The other options, risk manager, chief information officer (CIO), and IT steering committee are not the best choices for obtaining final approval for accepting the associated IT risk.They are more involved in the identification, assessment, mitigation, and monitoring of IT risks, rather than their acceptance2. They may also have different perspectives and interests than the business sponsor regarding the IT risk associated with the mobile sales channel project. For example, the risk manager may focus on minimizing or avoiding IT risks, while the CIO may focus on maximizing or exploiting IT opportunities. The IT steering committee may have a broader view of IT risks across multiple projects and programs, rather than a specific one. Therefore, they may not have the final say or decision on accepting the IT risk associated with the mobile sales channel project.

This is because an information steward is a person or group who is accountable for the quality, integrity, and usability of the information assets within a specific domain or function1.The responsibilities of an information steward include the following1:

Defining and enforcing data quality standards, policies, and procedures

Monitoring and measuring data quality performance and outcomes

Identifying and resolving data quality issues and errors

Collaborating with data owners, custodians, analysts, and users to ensure data quality alignment and improvement

Educating and training data stakeholders on data quality best practices and tools

An information steward plays a key role in ensuring that the information assets are accurate, complete, consistent, reliable, and fit for purpose1.

The other options, information custodian, information analyst, and information owner are not directly responsible for information quality.They are more involved in the creation, storage, access, and use of information assets, rather than their quality2. They may also have different perspectives and interests than the information steward regarding the information quality. For example, the information custodian may focus on the security and availability of information assets, while the information analyst may focus on the analysis and interpretation of information assets. The information owner may focus on the value and benefits of information assets. Therefore, they may not have the same authority or responsibility as the information steward for ensuring information quality.Reference:=What Is an Information Steward? | Informatica,Data Roles: Data Owner vs Data Steward vs Data Custodian

This is because KPIs are measurable values that indicate how well the IT governance framework is achieving its objectives and delivering value to the business1. By evaluating KPI results, the organization can:

Monitor and review the IT governance framework's progress, performance, quality, and outcomes

Highlight the IT governance framework's achievements, challenges, and opportunities

Demonstrate the alignment of the IT governance framework with the business strategy, goals, and priorities

Provide recommendations and feedback for the IT governance framework's improvement and adjustment

Evaluating KPI results can provide a comprehensive and objective overview of the IT governance framework's effectiveness and impact.

The other options, developing a business case for the program portfolio, benchmarking the IT governance framework to industry best practice, and reviewing results of IT audit reports are not as effective as evaluating KPI results for assessing the effectiveness of a newly established IT governance framework. They are more related to the design and implementation of the IT governance framework, rather than its evaluation. They may also be too narrow or subjective for assessing the IT governance framework's effectiveness, as they may not cover all aspects or perspectives of the IT governance framework. They may also depend on external factors or standards that may not be relevant or applicable to the organization's specific context and needs.

This is because enterprise architecture (EA) is a practice that helps organizations align their IT systems and processes with their business objectives.EA provides a holistic and integrated view of the current and future state of the organization's IT infrastructure, as well as the gaps, issues, and opportunities for improvement1. By using EA, the organization can:

Identify and prioritize the IT investments that support the business strategy, goals, and needs1

Optimize the IT spending and maximize the IT value1

Ensure the IT quality, security, and compliance1

Avoid IT duplication, waste, and inefficiency1

Define IT roles and responsibilities and assign accountability1

EA can help the organization plan for the necessary IT investments in a systematic and structured way, and ensure that they are aligned with the business vision and value.

The other options, risk assessment report, business user satisfaction metrics, and audit findings are not as useful as enterprise architecture (EA) for planning for the necessary IT investments. They are more related to the evaluation and monitoring of the IT performance, rather than the planning and alignment of the IT strategy. They may also provide limited or partial information about the IT infrastructure, rather than a comprehensive and integrated view. They may also depend on external factors or standards that may not be relevant or applicable to the organization's specific context and needs.

This is because the CEO is the highest-ranking executive in the organization, responsible for setting the vision, mission, values, and objectives of the enterprise1.The CEO also oversees the alignment of the IT strategy with the business strategy, ensuring that IT supports and enables the achievement of the enterprise goals2.The CEO plays a key role in IT governance, as they communicate and demonstrate the importance and value of IT to the board of directors, shareholders, customers, and other stakeholders2.The CEO also provides leadership, guidance, and support for the IT function, and holds it accountable for its performance and outcomes2.

A . Evaluating return on investment (ROI) is not the primary role of the CEO in IT governance, as it is more related to the financial management and evaluation of IT projects and programs.The CEO may be involved in approving or reviewing the ROI of major IT investments, but they are not directly responsible for calculating or analyzing it3.

B . Nominating IT steering committee membership is not the primary role of the CEO in IT governance, as it is more related to the governance structure and process of IT decision-making.The CEO may be a member or a chairperson of the IT steering committee, or they may delegate this role to another senior executive such as the CIO4.The CEO may also have some influence or input on the nomination of IT steering committee members, but they are not solely responsible for it4.

D . Managing the risk governance process is not the primary role of the CEO in IT governance, as it is more related to the identification, assessment, mitigation, and monitoring of IT risks.The CEO may be involved in setting the risk appetite and tolerance for IT, or in overseeing or escalating major IT risks, but they are not directly responsible for managing the risk governance process