Isaca COBIT 2019 Practice Test - Questions Answers, Page 16

The legal office is a function that provides legal advice and support to an enterprise on various matters related to its information and technology activities. The legal office also ensures that the enterprise complies with the applicable laws, regulations, standards, guidelines, contracts, or agreements that govern its information and technology activities. One of the responsibilities of the legal office is to execute contracts that retain independent legal consultants to review the level of regulatory compliance of a proposed IT solution. This means that the legal office is responsible for negotiating, drafting, signing, and enforcing contracts with external legal experts who can provide independent and objective assessment of the compliance status of an IT solution that an enterprise intends to implement or use.The legal office also ensures that the contracts are aligned with the enterprise's strategy, objectives, needs, and expectations, as well as with the relevant compliance requirements34Reference:3: COBIT 2019 Framework: Governance and Management Objectives: page 20-214: COBIT 2019 Design Guide: page 47-48

The enterprise strategy archetype is a design factor that describes how an enterprise uses information and technology to achieve its goals and objectives. There are six enterprise strategy archetypes defined in COBIT 2019: growth/acquisition; operational excellence; customer intimacy; product leadership; data-driven; innovation-driven. Each archetype has different implications for the governance and management of information and technology in terms of focus areas, processes, practices, roles, structures, and metrics. One of the important components for an enterprise strategy archetype of growth/acquisition is support for the portfolio management role with an investment office. Growth/acquisition is a strategy archetype that emphasizes expanding market share, revenue, customer base, or product range through organic growth or acquisition of other businesses or assets. This strategy archetype requires effective portfolio management of information and technology investments and initiatives that support business growth or acquisition objectives. Portfolio management involves selecting, prioritizing, balancing, monitoring, evaluating, and optimizing information and technology investments and initiatives based on their alignment with business strategy, value delivery potential, risk exposure, resource availability, interdependencies, etc. Portfolio management also involves ensuring that information and technology investments and initiatives are integrated with business processes, systems, structures, culture, etc., especially in case of mergers or acquisitions.Support for the portfolio management role with an investment office means providing a dedicated function or unit that assists the portfolio manager in performing portfolio management activities such as planning, analysis, decision making, reporting, etc., as well as providing guidance, tools, methods, frameworks, standards, best practices etc., for portfolio management5Reference:5: COBIT 2019 Design Guide: page 35-36 : COBIT 2019 Process Reference Guide: page 59-61

The board of directors is the highest-level governance body in an enterprise that provides strategic direction, oversight, guidance, and approval for information and technology governance. The board of directors is accountable for monitoring the performance of the execution of an EGIT implementation program plan against success metrics and adjusting long-term targets when necessary. This means that the board of directors is responsible for ensuring that the EGIT implementation program plan is aligned with the enterprise's vision, mission, values, strategy, goals, and objectives, and that it delivers the expected value and benefits to the enterprise and its stakeholders. The board of directors is also responsible for reviewing the progress and outcomes of the EGIT implementation program plan on a regular basis, using predefined success metrics such as key performance indicators (KPIs), key goal indicators (KGIs), key risk indicators (KRIs), etc., to measure the achievement of the program objectives and goals. The board of directors is also responsible for adjusting the long-term targets of the EGIT implementation program plan when necessary, based on the changing business needs, environment, risks, opportunities, etc., and ensuring that the program remains relevant and effective.

Reference:: COBIT 2019 Implementation Guide: page 37-38 : COBIT 2019 Framework: Governance and Management Objectives: page 19-20

The management objective APO09 Managed Service Agreements involves ensuring that IT services are delivered in accordance with agreed-upon service levels and costs. This management objective covers the activities of defining, negotiating, establishing, monitoring, reporting, and reviewing service agreements between service providers and service consumers. This management objective is most relevant for an enterprise that plans to outsource all of its noncore IT operations but wants to ensure the proper level of governance, risk and compliance (GRC) controls. By applying this management objective, the enterprise can improve its service governance and management capabilities, ensure alignment of IT services with business strategy and objectives, enhance service performance and outcomes, and increase service consumer satisfaction and value realization. This management objective also involves ensuring that the outsourced IT services comply with the applicable laws, regulations, standards, guidelines, contracts, or agreements that govern the information and technology activities of the enterprise, as well as with the enterprise's policies, procedures, processes, practices, etc. This management objective also involves managing the risks associated with outsourcing IT services such as loss of control, vendor lock-in, quality issues, security breaches, etc.

Reference:: COBIT 2019 Process Reference Guide: Governance and Management Objectives: page 63-65 : COBIT 2019 Implementation Guide: page 49-50

The capability levels are a measure of how well an enterprise performs its information and technology governance and management processes in terms of process attributes such as process performance, process definition, process deployment, process measurement, process control, process optimization etc. The capability levels range from 0 (incomplete) to 5 (optimizing), indicating the degree of maturity and effectiveness of an enterprise's information and technology governance and management processes. The capability levels are most likely to increase as a result of identifying specific design factors that increase the importance of certain governance and management objectives. The design factors are the characteristics or conditions that influence how an enterprise designs and implements its information and technology governance system using COBIT 2019. The design factors include aspects such as enterprise strategy archetype; enterprise goals; IT-related goals; risk profile; IT deployment; threat landscape; compliance requirement; operating environment; size of enterprise; culture; stakeholders; etc. By identifying specific design factors that increase the importance of certain governance and management objectives, an enterprise can tailor its information and technology governance system to suit its context and needs. This will also help to improve its capability levels for those governance and management objectives that are prioritized by the design factors. For example, if an enterprise identifies that its IT deployment design factor is cloud-based or hybrid-based, it may increase the importance of certain governance and management objectives such as managed availability and capacity (BAI04), managed service agreements (APO09), managed security services (DSS05), etc., which are relevant for managing cloud-based or hybrid-based IT solutions. By tailoring its information and technology governance system to address those governance and management objectives more effectively, the enterprise can also increase its capability levels for those processes.

Reference:: COBIT 2019 Design Guide: page 33-48 : COBIT 2019 Process Assessment Model: page 11-13

The performance measurements are the indicators that measure the progress and outcomes of the EGIT implementation program plan against the predefined success criteria such as key performance indicators (KPIs), key goal indicators (KGIs), key risk indicators (KRIs), etc. The performance measurements help to evaluate the effectiveness, efficiency, and value of the EGIT implementation program plan, as well as to identify and address any issues, risks, or gaps that may arise during the execution of the program. The projects that should be included when reporting on performance measurements related to an EGIT implementation program plan are all projects deemed appropriate by IT management. IT management is the function that is responsible for planning, organizing, directing, controlling, and monitoring the information and technology activities in an enterprise. IT management is also responsible for selecting, prioritizing, balancing, monitoring, evaluating, and optimizing information and technology investments and initiatives that support business strategy and objectives. IT management has the authority and discretion to decide which projects are relevant and important for reporting on performance measurements related to an EGIT implementation program plan, based on factors such as project scope, size, complexity, duration, cost, risk, interdependencies, alignment, value, etc.By including all projects deemed appropriate by IT management when reporting on performance measurements related to an EGIT implementation program plan, the enterprise can ensure that the report covers the most significant and critical aspects of the program, and that it provides a comprehensive and accurate picture of the program status and performance12Reference:1: COBIT 2019 Implementation Guide: page 51-522: COBIT 2019 Framework: Governance and Management Objectives: page 20-21

The EGIT business case outline and details are documents that describe the rationale, objectives, scope, approach, benefits, costs, risks, and timeline of the EGIT implementation program. The EGIT business case outline and details provide the basis for obtaining approval, funding, resources, and support for the program from the stakeholders. The responsibility for developing an EGIT business case outline and details resides with the CIO and program steering committee. The CIO is the senior executive responsible for leading and managing the information and technology function in an enterprise. The CIO has a role in developing, reviewing, validating, and approving the EGIT business case outline and details, ensuring that they are aligned with the enterprise's strategy, objectives, needs, and expectations. The CIO also has a role in communicating and presenting the EGIT business case outline and details to other stakeholders such as the board, executives, business managers, IT managers, etc., and obtaining their buy-in and commitment for the program. The program steering committee is a group of senior stakeholders who provide strategic direction, oversight, guidance, and approval for the EGIT implementation program. The program steering committee has a role in developing, reviewing, validating, and approving the EGIT business case outline and details, ensuring that they are consistent with the enterprise's vision, mission, values, strategy goals,and objectives.The program steering committee also has a role in monitoring and controlling the execution of the EGIT implementation program plan against the EGIT business case outline and details34Reference:3: COBIT 2019 Implementation Guide: page 37-384: COBIT 2019 Implementation Guide: page 39-40

The enterprise strategy archetype is a design factor that describes how an enterprise uses information and technology to achieve its goals and objectives. There are six enterprise strategy archetypes defined in COBIT 2019: growth/acquisition; operational excellence; customer intimacy; product leadership; data-driven; innovation-driven. Each archetype has different implications for the governance and management of information and technology in terms of focus areas processes practices roles structures,and metrics. The enterprise strategy archetype that is focused on increasing revenues is growth/acquisition. Growth/acquisition is a strategy archetype that emphasizes expanding market share revenue customer base or product range through organic growth or acquisition of other businesses or assets. This strategy archetype requires effective portfolio management of information and technology investmentsand initiatives that support business growth or acquisition objectives.Portfolio management involves selecting prioritizing balancing monitoring evaluating,and optimizing informationand technology investmentsand initiatives based on their alignment with business strategy value delivery potential risk exposure resource availability interdependencies etc.Portfolio management also involves ensuring that informationand technology investmentsand initiatives are integrated with business processes systems structures culture etc especially in case of mergers or acquisitions.5Reference:5: COBIT 2019 Design Guide: page 35-36 : COBIT 2019 Process Reference Guide: page 59-61

The industry sector is a design factor that describes the type of business or economic activity that an enterprise engages in. The industry sector influences the governance and management of information and technology in terms of the specific standards, guidelines, regulations, best practices, challenges, opportunities, etc., that are applicable or relevant for that sector. The industry sector that can be characterized by a low level of regulation and a high level of focus on cost is nonprofit enterprises. Nonprofit enterprises are organizations that operate for a social or environmental purpose rather than for profit. Nonprofit enterprises typically have a low level of regulation compared to other sectors such as financial, health care, public, etc., which have more stringent and complex compliance requirements regarding their information and technology activities. Nonprofit enterprises also have a high level of focus on cost, as they have limited resources and funding, and they need to optimize their spending and demonstrate their accountability and transparency to their donors, beneficiaries, partners, etc. Therefore, nonprofit enterprises need to ensure that their information and technology governance system is efficient, effective, and value-driven.

Reference:: COBIT 2019 Design Guide: page 45-46 : COBIT 2019 Framework: Introduction and Methodology: page 33-34